And so begins the life of three adults sharing one bathroom. Fortunately for me, I am the only male in the household and my understanding is girls are physically incapable of pooping, farting, or burping. Unfortunately for them, as a male I am not only capable of each of these things, but I have mastered doing all three at one time.
Too much information?
Our roommate moved in on Saturday, which means for the first time in my life, I’m a landlord. Do I get to learn some secret landlord handshake now!? Before we bought our house, we were paying $1,200/month in rent. As homeowners, we have a $1,600/mo mortgage payment (PITI). Can you guess how much we decided to charge our tenant/friend?
You’re wrong if you guessed $9,000/month, although I like your ambition.
We went with $400, which includes all utilities and cable. We’ll obviously have to pay taxes on that income (unless any of you know of some legal way to get out of it ;)). Assuming we’ll net about $300 after taxes. Stupid IRS.
Of our $1,600/mo mortgage obligation, $1,200 gets thrown away in interest/taxes/insurance, and the remaining $400 goes to reducing our loan obligation. So by letting our friend live with us, we can nearly double our principal payments each month. How sweet is that?
Will we actually use this rental income for additional mortgage payments? Probably not, but at least it’s an option. For now, we’ll just use the funds to help make our home better. Like yesterday, when we dropped some mad benjamins on new carpet in the basement.
You ever been, or plan to be a landlord?