One of the least entertaining aspects of moving is the fact that I’m about to be the owner of two homes that there’s virtually no chance of my ever living in again. That sounds ok at first blush. Property is property, right? The real estate market always comes back, right? Right? That’s not really the down side, though, as at least intellectually, I know that at some point in the future I will be able to sell at least at the break even point. The real kick in the teeth is that at least for the forseeable future (5 years under current laws), one of these houses counts as a pure liability no matter how good a money make it is as a rental property. It seems that the fine people who make the laws and implementing regulations have decided that rental income doesn’t count as real income (except for tax purposes) until it’s been actively rented for at least five years. What that really means is that I can’t use the rental income from the house here to help me qualify for a loan on a new house. Don’t worry, though. The government is happy to treat the those funds just like regular income for tax purposes, so they’ll be sure to get their cut. Awfully nice of them, don’t you think?
I’m pretty ok with needing to rent when I get back to Maryland. Alot has changed in five years and I’m not really an expert in the northeastern part of the state. Having some time to feel out the area is probably for the best. It would still be nice to know I’d be in a position to buy if the right property and the right price happened to come along. Not much chance of that. It seems mortgage companies are a little skittish these days about writing four mortgages on a single income. Go figure.
All on the home front isn’t doom and gloom, though. It seems the property manager I’ve hired has been doing strong work in the last few days. She called tonight with a strong lead on someone who is very interested in getting into the place as soon as I can manage to get my stuff out of here. Since it hasn’t made the listings yet, I’m hopeful that’s a good sign for getting someone in here and paying the bills quickly. The mortgage writers might not consider it real income, but their accounts receivable department will sure thinks it’s the real deal. That’s a box I’ll be extraordinarily happy to have checked as quickly as possible.