Steep driveway conundrum!? What's in a driveway?

Question

Again I call on the opinion of the experience of BP!  This one is a question for rental experts in particular, as my goal will be to rehab and rent the property.

I'm looking at a property that the numbers are going to work out for a positive cash flow outcome.

However, the driveway is steep.  I tried to take my car up it, and it wouldn't make it (no it's not a 4x4, and I live in Arkansas).  I really hadn't considered the repercussions of this on it's rent ability, until I imagined lugging a sofa-bed up the steps!

Do you think this will impact the rent the market will support?  Do you have any experience with a similar property?

Are there things to consider when dealing with such properties?

Thank you for your time!

Steven G. · Answer

I have had a property or two like that. It will be a problem for some people, unless level street parking is available. When you have houses on busy streets, or with steep driveways, etc ... you cannot lose if you (a) buy the property for a lower price than you normally would (as inherently the property value is lower because of the undesirable situation), and (b) you have slightly lower than market rent - you'll always have someone willing to rent the place for a couple hundred bucks less that will just "deal" with the inconvenient driveway.

Samuel DeMass · Answer

Steven G. ,

Thanks, that's kinda what I was thinking/hoping.  I think parking on the street is feasible, since that what I was able to do when I looked at it.  It looked like a couple of the other neighbors were following suite with similar issues with their properties.  I'm sure there are vehicles that could make the incline, but the vast majority will be street parking.

The garage door opener is missing, do you think it's worth replacing?

Samuel DeMass · Answer

@Joel Owens ,

Thanks for your offerings.  The driveway is about a cars length, if not a little more.  They've got steps all the way from the front door to the road to help support the walking from the street idea.

Joel Owens · Answer

Yeah I pass on incline properties like that.

Limits your renter base age group in a lot of ways. One key is if there is a parking pad at the top of the hill next to the house is a big bonus.

If the driveway shoots all the way up and it's only level in the garage or barely outside of it then is a major issue. Car will have to park at an incline and it will put a lot of wear and tear on the tranny. People will have a hard time keeping the door open to get out. If your area has snow, ice etc. it will make it even worse.

If it's a straight shot not as bad up the hill and down. If it's a hill and it also winds up to the property and has trees around it then it's double bad. If the length of the drive isn't that bad then people might be able to park at the street and walk up but generally not if it's a far distance.

Also keep in mind if the house rental is on a street going commercial that being on a hill is bad for resale depending how steep it is.

When you develop a parcel for commercial you want the tenant to have great site lines and ease of access from the road. To level off that kind of dirt to bring it close to street level would require very expensive grading and likely a retaining wall. That leaves less money for the developer to pay you to buy the parcel etc.

I have probably seen more driveways than most ever have. I was in the food business for decades. In my earlier years I delivered for Dominos pizza to thousands and thousands of houses so have about seen it all for lots and driveways.