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Old 03-12-2008, 08:50 AM
 
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Anyone have any idea about the strength of the single family housing rental market in these areas? Is there a good demand for this at this time? Any suggestions? Thanks....
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Old 03-12-2008, 08:52 AM
 
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With mortgages being harder to get, there's probably a fairly strong desire for rentals in the area. If you're looking to get into the market as a landlord, the difficult part will be making the rent cover the mortgage payments unless you bought the house some time ago.
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Old 03-12-2008, 08:56 AM
 
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Quote:
Originally Posted by BobKovacs View Post
With mortgages being harder to get, there's probably a fairly strong desire for rentals in the area. If you're looking to get into the market as a landlord, the difficult part will be making the rent cover the mortgage payments unless you bought the house some time ago.
Good news....I didn't know how rentals related to sales....

Anything above $1700 per month would cover the mortgage left, but this of course does not cover utilities.

From research on this forum, it looks like a 4 bedroom single family home should be able to command at least $2000 per month, right?

I'm wondering whether you need a realtor to do rentals....
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Old 03-12-2008, 09:03 AM
 
Location: High Bridge
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Quote:
Originally Posted by kalim2008 View Post
Good news....I didn't know how rentals related to sales....

Anything above $1700 per month would cover the mortgage left, but this of course does not cover utilities.

From research on this forum, it looks like a 4 bedroom single family home should be able to command at least $2000 per month, right?

I'm wondering whether you need a realtor to do rentals....
Yes, but remember - mortgage + taxes + maintenance. Could come up above over $2k/month quite easily.

And no, you don't need a realtor. They do have their advantages (legwork - background checks, credit checks, etc), but they also have their disadvantages (the commission can put off would-be renters). With a realtor, you do little to bring the renter in, then all the work of keeping them there and getting paid. Without a realtor, you do all the work of getting them in, checking up on them, contacting previous landlords, etc, and then still all the work of keeping them there and paying on time. How you go about it is up to you and the time you have available.

Remember also that you'll have a significant level of involvement with your tenants. When a problem happens, you get the phone call. Document everything. Always have a lease agreement, even if its a month to month arrangement. Security deposits are legally limited, but you can have appended additional deposits (such as a pet deposit) to cover potential loss in other areas. I'd just suggest doing your homework, and be prepared to invest a good amount of time before and during a renter's stay.
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Old 03-12-2008, 09:10 AM
 
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You don't need a realtor to rent your place. But if you get a realtor, then the future renter will end up paying them for one months' rent in order to get the place. When I was looking to rent, I refused to look at any properties that had realtors showing them because I didn't want to pay the fee of one months rent to an agent.

I ended up finding my place on Craigslist.
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Old 03-12-2008, 09:26 AM
 
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Just a down and dirty formula to figure if your rental makes sense:

- Add your monthly mortgage, taxes, and insurance together, and add around 10% for maintenance costs (less for a brand new home, maybe more for an older home).

- Take 75% of that to account for vacancy between tenants, bad debt, etc.

If you can still make the numbers work, it's probably a good rental. If you're not going to be able to cover your costs, you've then got to look at it from the "it's costing me $X/month to own a home that hopefully is appreciating- is that worth the cost?" standpoint.
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Old 03-12-2008, 09:27 AM
 
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Originally Posted by CuCullin View Post
Yes, but remember - mortgage + taxes + maintenance. Could come up above over $2k/month quite easily.

And no, you don't need a realtor. They do have their advantages (legwork - background checks, credit checks, etc), but they also have their disadvantages (the commission can put off would-be renters). With a realtor, you do little to bring the renter in, then all the work of keeping them there and getting paid. Without a realtor, you do all the work of getting them in, checking up on them, contacting previous landlords, etc, and then still all the work of keeping them there and paying on time. How you go about it is up to you and the time you have available.

Remember also that you'll have a significant level of involvement with your tenants. When a problem happens, you get the phone call. Document everything. Always have a lease agreement, even if its a month to month arrangement. Security deposits are legally limited, but you can have appended additional deposits (such as a pet deposit) to cover potential loss in other areas. I'd just suggest doing your homework, and be prepared to invest a good amount of time before and during a renter's stay.
Good info again....sorry, that $1700 includes taxes, but not maintenance.

Last edited by kalim2008; 03-12-2008 at 09:38 AM..
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Old 03-12-2008, 09:28 AM
 
786 posts, read 2,669,808 times
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Quote:
Originally Posted by BobKovacs View Post
Just a down and dirty formula to figure if your rental makes sense:

- Add your monthly mortgage, taxes, and insurance together, and add around 10% for maintenance costs (less for a brand new home, maybe more for an older home).

- Take 75% of that to account for vacancy between tenants, bad debt, etc.

If you can still make the numbers work, it's probably a good rental. If you're not going to be able to cover your costs, you've then got to look at it from the "it's costing me $X/month to own a home that hopefully is appreciating- is that worth the cost?" standpoint.

Thanks...I can't believe how knowledgeable some people here are....
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Old 03-12-2008, 09:39 AM
 
786 posts, read 2,669,808 times
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Quote:
Originally Posted by BobKovacs View Post
If you can still make the numbers work, it's probably a good rental. If you're not going to be able to cover your costs, you've then got to look at it from the "it's costing me $X/month to own a home that hopefully is appreciating- is that worth the cost?" standpoint.
We don't want to sell in a bad market...that's pretty much it.
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Old 03-12-2008, 10:46 AM
 
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Quote:
Originally Posted by kalim2008 View Post
We don't want to sell in a bad market...that's pretty much it.
Then you can look at it as "I sell now and only make $X. If I hold onto the house for 3 years and it costs me $300/month out of pocket to keep owning it, can I increase my profit by more than the +/-$10k I spend over the 3 years?"
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