Need advice for finding tenants near train tracks

Need advice for finding tenants near train tracks

Investor · Member since 2019 · 48 posts · 32 votes

tldr: bought rental property sight unseen due to military orders and buying out of state. Realtor failed to mention that there were train tracks and a railroad crossing right behind the house. Found out after I closed and showed up to furnish the place. Strategy was to use it as a fully-furnished crashpad but may need to flex to rent-by-the-room or LTR.

Hey BP Family,

I recently purchased a rental property in San Antonio. I used a realtor I found on here to purchase the place. I was on military orders and unable to view the property so I ended up buying it sight unseen after my realtor did a walkthrough and helped me vet the place. The closing process was uneventful and after the holidays, I showed up to furnish the property. Driving up to the property, I noticed a railroad crossing near the neighborhood. I thought that was odd and that turned to horror as I realized the railroad tracks were right behind my property. 

Over the course of a few days I furnished the place and found that the train would blast it's horn multiple times throughout the day and night. I contacted my realtor asking why the tracks were never disclosed. I Google Mapped the distance and it was showing 0.8 miles. My realtor said that since it was about a mile away, he was not required to disclose since it doesn't materially affect the property. I realized I was measuring it inaccurately and as the crow flies, the tracks are actually 0.1 miles (~400 ft) from the property. Once I told him this, he said he didn't disclose it because it wasn't part of his checklist. He offered to pay to install soundproofing curtains if I bought them, but shortly ceased all communication with me after I took him up on his offer. 

I get it, due diligence, buyer beware, all that. Ultimately my responsibility but that is what realtors are there for. He literally drove to the property, passed the railroad crossing, saw/heard the train, yet failed to let me know.

I was luckily able to rent it out as a crashpad for a few months to people I knew, but they are moving out in May. They definitely let me know frequently about the train noise and I did everything I could to make their time there tolerable (white noise machines, Bose Sleepbuds, etc). 

They are moving out next month and I highly doubt I will be able to find/keep any quality tenants due to the train noise. My initial strategy was to use it as a crashpad but now open to renting by the room or LTR. I feel like my only saving grace was that I knew the people I rented it out to initially, not sure if it would have worked had I not known them.

Soundproofing beyond curtains, white noise, etc. is incredibly expensive and will not completely reduce the train horn. I reached out to the city to designate it a quiet zone but that process is lengthy and costly, and they said that conductors would still likely use the horn due to the location of the crossing. I reached out to a different realtor who said if I were to sell, top of the market would be around $295k. I'm all in currently for about that much with furnishings, repairs, and installing sod. If I were to sell, I'm guessing it would be about a $30k loss (fees etc).

My question is, what are my options for attracting quality tenants despite train noise? I know I will have to reduce rent and disclose the noise to all potential tenants. What do you all recommend? Would love some advice.

Thank you!

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Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
4y

San Antonio market is solid and upward. Not sure why you bought furniture for a house you didn't plan to move in (short term rental?). If you used a VA loan it's a problem.

Two choices:

1. Get a great tenant with perfect credit who has poor hearing. 

2. Sell now. (forget what you paid for furnishings) List it for $303,000 see if it sells in thirty days. Sign listing agreement only for 45 days. Start advertising for tenants on day 30 then rent it on day 46 if you don't get a cash offer. 

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  • Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
    4y

    On the plus side, your property is close to mass transportation.  Market that as an advantage and increase the price 20%   :-)

  • New to Real Estate · Castle Rock, CO · Member since 2014 · 172 posts · 66 votes
    3y

    What ever happened to this property?  Did you end up selling or keeping it.  How is it going if you kept it.  

  • Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    3y
    Aloha,

    Check your state's real estate SALES laws, most that I am aware of require a Seller's Disclosure to be provided, which most certainly would need to include nearby train tracks. Yes, YOUR agent should have done better, but if your Seller did not disclose, you might have a good case. Beyond that, be honest in your rental ads and disclose it early in the body of the ad. You would be surprised the number of Type B's that easily tune out traffic, airplanes, trains, dogs, and everything else. By making it clear there is an issue, you will not be wasting time with people that are more sensitive.
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