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Updated over 16 years ago,
Which house should I buy to RENT????
Here is a pretty noobie question:
I have 2 houses, in the same neighborhood, about 2 streets apart.
1. First house, is smaller (about 1100 sq ft), 3 bd/2bath, brick, selling for $50K. Rehab to make it RENTABLE is about $15K. Total cost: 65K
2. Second house, is bigger (about 1500 sq ft), 3 bd/2bath, brick, selling for $67K. Rehab to make it RENTABLE is about $10K. This house is about 10 years younger. Total cost: 77K.
The comps for the neighborhood is about $110s. BUT the rent for the neighborhood is about $1050/mth. Price per sq. footage is virtually the same at about $45 per sqft.
My question, since my strategy is Buy, Fix, RENT. Does it make sense to buy the bigger house for $12K (based on Total cost) more, when the rent is will pretty much be the same??
Also, how much should I care about resell comps for ARVs if I plan to RENT?
Thanks!
EXO