Northern light wrote:
Could you buy a family home in Las Vegas for $ 100.000 - 175.000? Sounds cheap! And, why would you want to rent a room in a (cheap) family home with two other blokes for $6.000 a year if you could buy one on your own for 16-17 times that, and have two roommates pay $ 1.000 a month to you...
Sound a bit too good to be true?
Where I live a nice family house is $400.000 - 730.000 but even so I wounder what a student would pay for a room and access to bathroom, wascher and kitchen... $360-400 is my guess. Just saying.
To answer your question (and sorta present an update) the range looks more like 140k-190k now. My mortgage would still be under 1k.
Las vegas has a huge difference between rent costs and home owner monthly cost at the moment. It also is very area dependent. A 3 bedroom condo rents out from 950-1.3k in the area i am looking for, and these usually don't have a garage, a yard, smaller kitchens, less bathrooms (1-2), and smaller rooms (as condo's generally have.)
I know many people personally that live in these areas and happily pay 550-600 for their split of a condo + split of bills. The two people looking to move in with me were in a similar situation and I told them about me looking at houses. They will get bigger rooms, bigger common areas, their own garage spots, and just the general benefits of a house (backyard, easier to host a party, ect.)
On top of all this, you also need a down payment and solid credit to get a house out here because houses are moving fast. A lot of people that are looking to rent don't have one or the other (usually down payment, but may not be in a great credit situation either.) Also, there could be the other usual reasons they are looking to rent, may not want to stay in the area for a long time, not sure where they are going in life, ect.
I know one of the two relatively well, he was a co-worker for a year at a previous job and we had a few classes together in College. He is looking for a new place with his brother. I met his brother, talked everything over, and we are on the same page. I specifically was looking for the happy medium of "I know you, but we aren't close friends, so we don't have to spend every minute together, and I won't have a problem taking action against you if I have to."
Onto Eagle's Questions:
A)See above, and see above.
B)in the areas im looking 700-900. Now note, just like most places, location is key in price. Its true i could get a cheap studio or bedroom apartment for 400-500 in certain parts of town. But these areas are deemed "not safe" by many, and the apartments are usually decades old and ran down. Also in my specific case, the area I am looking is close to both of their jobs (within 15 minutes) and was the area they were looking to get an apartment for 1150 together.
C) Yes, most likely $500 each, which will be refunded at the time they move out and the rooms have been inspected. I have discussed with them what is required of the room condition (basically look the same before and after, and I will be taking pictures before anything is moved in, and a HD video run through of the entire house.) This also will be written out eventually. (No, none will be "non-refundable" or "cleaning fee" as long as they return it in the condition found.)
D)This I haven't decided yet, nor have we really discussed. They are aware a contract will be needed, along with a deposit and how much rent will be, but this one part hasn't been set yet. Clearly it will have to be, I am thinking 9 months. The usual around the area is 10-12 months or more, but I am looking to be fair with them.
E) This isn't set in stone yet, but basically 60 days (two months) of notice, along with the rent for those two months (if they plan to stay in the room for those two months that's fine), their responsibility to find a roommate that I (the landlord) agree on. If they can't find a suitable roommate, then their deposit will be lost.
The Flip side, I would let them know 60 days in advance that I may have to have them leave, for X reason, and at that point they would have to move out. This is in the case if they have stayed recent with their payments without issues. Clearly if they stop paying rent or utilities there will be a different reprocution for this (probably going to include something in the contract that states missed rent payments will receive an official eviction letter and you will have to leave within 30 days, however, I need to look into state law on eviction processes.)
I do plan on saving some of their rent, or more so my paychecks. Essentially if their rent covers my mortage/property tax/HOA/house insurance (which it may just come under) then I would take what is not coming out of my pay check any more and divide it among a "home account" (much like I have set up now for my down payment), some will go to adding a 100-200$ every two weeks (i like the idea of biweekly payments, as my salary is this way), and building me E fund up more (I have a "sufficient" E fund right now, but want to slowly build it to be bigger to accommodate for at least a year of expenses at my new level figuring without room mates.)
I do plan on being very upfront with the roommates, we had a two hour discussion and we all seem to agree on most things, and appear that we will click well. I told them that when i drawl up the contracts that we will sit down together, discuss every page in detail, and clear up and confusion and make possible edits where needed. I am not looking to be some scum lord, or pull one over on them. They are helping me, and I am helping them, is how I see it. So I should be thankful for their assistance in helping me pay for my first house in the first couple years.