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Re: Poor Economy homes not renting
by Lighthope
on December 18, 2014 @15:28
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> Please any advise we have over 20 home with 8 vacancies and > 2 renting way below market value.
Sadly, it's not that they are renting below market value. It's that the market will not support the rent you want.
This is the problem when you speculate and hold a mortgage on a rental. You are betting that the rental prices will always be above the mortgage.
This is a very common practice. Few people can afford to buy a property outright. But it does come with risks, and you've stumbled onto one of them.
Your choices are stark:
1) Rent them and absorb the loss until market rates rebound.
2) Sell and get out.
3) Improve your properties so that they will command the rent you ask for.
If the homes are "well kept in decent areas," there are people who will pay for nice homes. They are hard to find, but they will come if they find value. At this time, you just have to suck it up and admit that you are not providing the value these people are looking for. I'm not saying you have slums. I'm saying you are in a buyer's market, so you have to provide even more value for the dollar than you would have to if this was a seller's market.
Lighthope
Pearls of Wisdom - "Remember...you fashioned these memories yourself." - Ghost of Christmas Past (Mickey's Christmas Carol)
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