Re: Fair Rental Value - Landlord Forum thread 326030

Re: Fair Rental Value by Monica (Ohio) on October 20, 2014 @23:28

That isn't the return I would look for. I wouldn't pay $80,000 for a house that would only rent for $800.00. You can expect your payment including escrow for taxes and insurance to exceed that amount, where is the profit? How about vacancy loss, advertising, repairs and rehab between tenants?

I know the days are over for the huge bargain but there are still profitable properties out there.

Since 2008 until last year we took advantage of the market and bought as many as we could. These required some work and costs for repairs/remodeling. A $55,000 purchase, rents for $1200, another one (two homes on one lot) for $59,500 we collect over $1600/mo. Another one for $52,900 rents for $900/mo. One for $24,000, rents for $900. One for $28,000 rents for $850. All of these rents are more than the 1% of the purchase price. I can still find similar deals, there is a house I am considering looking at, asking $49,500, it would likely rent for $900.

[ Reply ] [ Return to forum ]

Re: Fair Rental Value by John Farmer (Florida) on October 21, 2014 @14:05	[ Reply ]

When you look for deals, what is your process? What is your usual vacancy rate?

Re: Fair Rental Value by Monica (Ohio) on October 22, 2014 @01:24	[ Reply ]

I look on the MLS (realtor listings) I enter certain criteria that meets what I am looking for. My vacancy rate this past year or so has been very low, it never has been high for us but we provide nice single family homes in nice areas. From what I understand there isn't a huge list of available homes in the rental market. I would guess my vacancy rate to be about 2% maybe. I have one empty out of 27 at the moment. Previous renters call for my homes wanting to come back, some current renters have moved into another home that I have available at the time, while that fills a vacancy, it opens another one. I just had a tenant upgrade into another home I had just come available. It was empty for only 2 weeks.