Worried about my first property, need some reassurance!! :)

[Jared Baker]

Hello BP!! I have finally started making my first steps into purchasing a rental property.  I have spoken to several lenders and have been pre-approved for a loan and now I'm ready to start putting offers on properties, however I am a bit concerned.  After getting some general data I know that my numbers when running reports are pretty accurate and I have confidence that based on rental amount, purchase price, and associated expenses I can find the right deal, however I am concerned about actually getting the property rented and for the right amount.  

I'm looking on craigslist at available places for rent and there are a lot of listings. To me this seems like there is an excess of rental properties in the area, but on the other hand I'm part of a facebook group and see at least 2-3 posts a day about people looking for a place to rent. I'm concerned that after buying my first property that it may sit empty for an extended length of time which wouldn't be the end of the world, but wouldn't be great either. The other thing is what to rent the property for. I see prices ranging from $600-$1200 a month (SFH 3/1), so how can I determine an actual realistic number that will get a good renter.

Right now I'm looking at getting either a single family or a duplex, and I understand the benefit of having a duplex, but prices are a bit high and makes it difficult for the numbers to work. So I'm sort of focusing my search on SFH. I feel like there is a housing shortage, and it should be pretty easy to get a good renter and the right price, but I guess being new to this I'm a bit worried that I may end up buying a property and it will sit empty due to either people not needing rent or I will rent it but the price will be low that I either am just making the payment or it costs me money to rent it.

Thoughts?

[Jay Hinrichs]

common thought process.. you may want to talk to a good PM in the area and try to see what their vacancy rate is.

also if your considering using a PM you could ask them for example.. If you buy in this area this kind of house what would I expect in rent.

Keep in mind in colder climates and in most all markets there are renting seasons. 

so timing of bringing your product to market is important.  Like winter its harder to rent.

after school starts harder to rent.

holidays can be challenging.. 

For instance in collage towns where your counting on students.. you don't have your renters by Aug. you can be in trouble.