LUBBOCK, TX property: sell or hold?

Question

Hey guys!!

We have a 3 br rental, 1550sq ft, (in FISD convenient to TTU & Medical District), bought for 125K a few years ago, currently rented for 1450/month. Our PM just informed me there are NEW 3 br homes (bought for 140K) that are renting for 1350-1395$/month, and that our PM is getting lots of inquiries about those new rentals. Anybody had to decrease their rents on their older homes? Our rental is in a really good area, so I still think we can charge 1450, but I am not there, so plz share what's up with Lubbock RE.

Cassi Justiz · Answer

I like the Lubbock market. Your numbers are really similar to the property that I own there. I think it's going to depend on the style of your property and how well it holds up to the new construction competition.  If they all go up for rent at the same time and are similar finishes and sq footage, then the new construction properties may end up leasing first because of the price.  But I wouldn't drop the rate if it's currently rented out. I have a property that rented out 2 years ago for $1400 in a neighborhood of $1300-$1350 rentals. Even though some of the newer houses were cheaper, my property has a more appealing layout and nicer finishes. So if you are in that situation, I wouldn't be too concerned.

Stephen Robertson · Answer

@Edita D.

If you'll PM me address, I'll try to give you my opinion when i get back next week since I'm local to the area.