Re: to: person with 2 questions - market part

Re: to: person with 2 questions - market part by Anna Mouse on May 17, 2012 @23:23

Your right. Absolutly for investment property you should make sure you are going to make a profit. The mortgage, major repairs, minor repairs, taxes, upgrades if applicable and funds for when you are vacant. If you are not going to see a profit do not buy the property.

There was a post below and the poster asked about what to do if his property was not renting and sitting vacant for 3 months. Therefore, it does not matter what the expenses are in this case. Renting it out for a lower price or or additional advertising is the only option. Since he said he was vacant for 3 months sitting vacant for 4 or 5 months is the wrong answer. Renting it out and covering some expenses is better than none.

My fault for not giving all the information and starting a new post.

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Re: to: person with 2 questions - market part by jannie (IL) on May 18, 2012 @08:49	[ Reply ]

I didn't see the posting about sitting empty for months, but that could have just as well been me. We put the home up for rent unfortunately near winter holidays. We found no qualified renters (no credit, no income & giant dogs). It was available, but nothing in Jan/Feb. We put it on the market to sell. Lookers, lowering price nothing. There is a glut of homes for sale & also rentals. Our contract ends June 3 so we'll be listing it for lease. Hopefully the time of the year improves our pool of potential tenants. We purchased this property thinking we would see a profit by using it as a rental, but wasn't watching our local market to realize the rental market had become much more competitive!

Re: to: person with 2 questions - market part by Anna Mouse on May 18, 2012 @12:08	[ Reply ]

Jannie, Good luck this June. June and July, in states that actually have four seasons, are the best possible time to be renting. That said seasoned LL knows this and there is more inventory. Good luck and start making a chart now so you know where you should be priced.