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Would REALLY REALLY appreciate some guidance/replies.
We have the good fortune of being able to buying a 3300-4000 sqft home in either Heritage or Bedford or Carpenter Village (cary) in the 380-400 K range, with the intent of renting it out.
In what order of priority should we bid for?
the 3 homes are pretty comparable in their size,upgrades and lot sizes etc.
I think those are all nice neighborhoods. I don't think they are strong rental markets at the $400K range. You may be sitting with a vacant property for a while.
I'll put them in order of how I like them: Bedford (North Raleigh), Heritage (Wake Forest), Carpenter Village (Cary address but really located in Morrisville).
I don't work in property management so I can't really say, for sure, how easy or difficult it would be to rent out the house. I did have clients who rented their house in Cary quite easily with a property management company so there is some need for homes of this size for rentals.
If you call a property management company, they should be able to guide you on the time it will take to rent the house, how much you should expect to get, etc.
Thanks.
VickiR>> would you happen to know the property management company they used?
Would like to call them and see how they would suggest..market rentals etc. We asked our realtor to do CMA's on these neighbourhoods...and seemed 60-70 days was average before the property was rented.
Be sure you really want to be a landlord before becoming one.
It's not all milk and honey.
Just wait till a bad tenant runs off owing rent and leaves you with lots of damage.
A good mutual fund is less trouble.
My father-in-law was an apt super. We had a lot of fun cleaning up the damage from bad tenants. One memorable one painted the bathroom black from ceiling to floor including fixtures. The apt was littered with stolen parking meters the tenants removed to loot of coins.
Be sure you're ready for midnight repair calls and defaulting tenants.
We have the good fortune of being able to buying a 3300-4000 sqft home in either Heritage or Bedford or Carpenter Village (cary) in the 380-400 K range, with the intent of renting it out.
You may encounter some issues with buying an investment property in some of these neighborhoods. For instance Bedford has a strict policy about rentals. Per section 24 (Restrictions on Rentals of Dwelling) of the HOA Master Covenants it "specifically excludes the leasing of dwellings by an owner where the primary purpose of the ownership is intended primarily for lease to tenants and not for occupancy by the Owner as the Owner's primary residence."
I would assume Heritage and other comparable neighborhoods would have similar restrictions.
thanks.
NRaleigh Mom>>thanks for the feedback,ill ask our realtor. Though we have seen many many houses in bedford and a good number in Heritage, that are offered for rent or are being rented presently.Wonder how do they go about it then.
saturnfan>>yes, its scary...especially we will probably be moving away. but im hoping that in this price range we get a different type of tenant. Also plan to hire a property management service.
If they have lived in it and tried to sell it, that clause doesn't apply. It's different if you're buying to rent. Communities generally don't want to turn into rental neighborhoods and work to avoid it.
Are you serious? I would suggest you are better off standing on a street corner and throwing money at passers-by, or using it to light a fire to heat your turkey fryer. At least that will be fun. A $400k home in Bedford is going to rent for AT BEST $2k per month. Take out management fees and you're down to $1600. Then add in maintenance so in a nice world you're down to $1500. And then you are still assuming you have occupancy 12 months a year which is wishful thinking. So your yield is 4.5% with this 100% occupancy assumption. One bad tenant and you are out thousands$$$$ and your property is unrentable for a few months. I truly am struggling to thinking of a worse way to invest your money.
If you want to be a landlord, learn about the market and buy a unit of crap condos downtown that always find a tenant. More likely at best you are suited to investing in a REIT.
I agree with some of the others. As a current landlord and someone who knows many other landlords, the rental market at that price range just plain sucks. It'll take forever to rent and then what, you are still subject to the Raleigh PROP program (look it up on their website, huge BS and hassle factor) and bad tenants even at that upper end of the rental market. I say it's a BAD BAD idea and for that much money to invest, either invest in the stock market or possibly buy many lower priced units instead of a single higher priced unit.
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