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Old 08-07-2011, 09:27 PM
 
13 posts, read 32,307 times
Reputation: 18

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I am looking to buy a townhome/condo as a rental property. They are both roughly the same sq. feet. Property B is about 10K more. Which would be a better rental property? I want to hold on to it for at least 15-20 yrs or more.

Property A:
- Nice, safe neighborhood
- Good schools
- Built in the 1960s

Property B:
- Transitional neighborhood
- Not so great schools
- Brand new
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Old 08-08-2011, 07:03 AM
 
Location: Pearland, TX
3,333 posts, read 9,170,918 times
Reputation: 2341
Quote:
Originally Posted by kupa View Post
I am looking to buy a townhome/condo as a rental property. They are both roughly the same sq. feet. Property B is about 10K more. Which would be a better rental property? I want to hold on to it for at least 15-20 yrs or more.

Property A:
- Nice, safe neighborhood
- Good schools
- Built in the 1960s

Property B:
- Transitional neighborhood
- Not so great schools
- Brand new

In a vacuum? Property B. Less go-forward overhead, can rent to DINKs.
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Old 08-08-2011, 07:15 AM
 
Location: Charleston Sc and Western NC
9,273 posts, read 26,486,142 times
Reputation: 4741
A. You will always have renters for it. 15-20 years is a long time. If it's a good neighborhood it would take longer than that to slide. Transitional neighborhoods could be a risk in the new economy, and finding renters for transitional areas is a little harder than an area that has Schools and Safety going for it.
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Old 08-08-2011, 09:14 AM
 
4,246 posts, read 12,021,657 times
Reputation: 3150
Quote:
Originally Posted by HoustonRonnie View Post
In a vacuum? Property B. Less go-forward overhead, can rent to DINKs.
Double
Income
No
Kids
???????????
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Old 08-08-2011, 09:20 AM
 
Location: Pearland, TX
3,333 posts, read 9,170,918 times
Reputation: 2341
Quote:
Originally Posted by danieloneil01 View Post
Double
Income
No
Kids
???????????
"Dual Income No Kids". DINKs love cornerstone projects.
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Old 08-08-2011, 10:17 AM
 
13 posts, read 32,307 times
Reputation: 18
Good points both way - I can't decide! If it helps, but properties are located about 3-4 miles outside the loop. Wouldn't DINKs prefer to rent something closer to D/T? And which are preferred renters - families or DINKs?
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Old 08-08-2011, 10:36 AM
 
Location: Pearland, TX
3,333 posts, read 9,170,918 times
Reputation: 2341
Quote:
Originally Posted by kupa View Post
Good points both way - I can't decide! If it helps, but properties are located about 3-4 miles outside the loop. Wouldn't DINKs prefer to rent something closer to D/T? And which are preferred renters - families or DINKs?
Depends upon where they work, IMO.

Ronnie
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Old 08-08-2011, 07:58 PM
 
Location: Woodfield
2,086 posts, read 4,129,693 times
Reputation: 2319
After a few years of renters living in it 'B' will not be new anymore but 'A' will still be in a great neighborhood. IMHO, 'B' will depreciate over the years when directly compared to 'A'. BTW, we're renting a small 60's house for the same rent a larger newer house would be in a comparable neighborhood just a few streets south of us.
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Old 08-08-2011, 08:16 PM
 
Location: Republic of Texas
988 posts, read 1,203,202 times
Reputation: 707
My gut tells me "A", but really not enough information.

Can you give the nearest major intersection for each house?

Does "A" require any renovation?

What is the purchase price or debt service for each?

What is market rent for each?

If this is just a hypothetical, then I would probably say A. "Location is everything" is not just a cliche.
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Old 08-08-2011, 08:29 PM
 
13 posts, read 32,307 times
Reputation: 18
A is in Briargrove. B is off of Dunvale and Westheimer, across Walmart.
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