Reducing rent to place a tenant?
I am relatively new to investing. I have 2 quadplexes in Atlanta being managed by a PM since I am in California. I bought these units because the PM said the rent in the area was $1250 and they believe I could get between $1250-$1275 a month per unit. So I bought these units assuming these numbers as that would make me cashflow. However, the unit has been on the market for one month and now they are saying to lower the rent $25 every week. My question is, how low do I go? Do I go down past $1200 where I won't cash flow every month but it's better than no tenant? I would love to hear feedback from the seasoned investors. Thank you.
Most Popular Reply
@michele Velaquez, you bought a place because you anticipated just $50 cashflow?
How do you define "cash-flow"? Are you including budgeting 10-15% total for capital expenses, vacancy, and maintenance? If you are defining cash-flow as just meeting your hard costs like mortgage, taxes, insurance, PM, etc then that isn't good at all.
Are there any changes you can make to get the rent you planned? Adding a washer/dryer instead of just hookups. Allowing pets with additional pet rent and pet deposit. There are lots of possibilities.