Re: tenant pays $3000 for rent and not buy a house?

Re: tenant pays $3000 for rent and not buy a house? by P-Bone (NY and OH) on May 24, 2016 @11:27

Yes, all the time. I knew a couple that lived in downtown Alexandria, just a few blocks of Kings Street and a couple blocks from the water. Their row home unit was 3 bedroom and cost them around $3,000 a month. They paid it because to own one of those homes would cost over $500,000, which before taxes, insurance, and any other premiums would be well over $2,000 a month. Now I know that sounds like bad rental bet, but considering you'd have to put 20% down, not everyone has $100,000 laying around. So, if you decide you only want to stay for 5-10 years, that extra $1,000 a month costs you $60k-$120k and you have no responsibility to any major repairs. Again, that's excluding what would likely be high taxes and insurance for a place like that.

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Re: tenant pays $3000 for rent and not buy a house? by learner (VA) on May 25, 2016 @00:16	[ Reply ]

Thanks for the reply. I do get the numbers.Yes. I am in progress to calculate the cost of operating overhead to estimate the rental price and profitable or not after maintain the lawn, yard, deck, gutters; repair the roof, window, gutter pipe, etc. BTW, My realtor says the work terms are usually the reasons to keep people from buying a house.

Re: tenant pays $3000 for rent and not buy a house? by P-Bone (NY and OH) on May 25, 2016 @10:25	[ Reply ]

My best advice to you to figure out what's going on in your area, is to look. Act like a prospective tenant and go see what your competition is like. Look for units that are similar in size and amenities to what you plan to offer and see what they are asking. Every few years I usually do this, to see if the quality product that I am providing is still higher than what's in the mile around me. I then price it reasonably similar so that it rents to high quality tenants fast.

Re: tenant pays $3000 for rent and not buy a house? by learner (VA) on May 25, 2016 @20:56	[ Reply ]

Thank you very much for your sharing your experience. I will do exact the same things as you do. Thanks a lots!

Re: tenant pays $3000 for rent and not buy a house? - Landlord Forum thread 345173