Help.. Struggling to rent first investment property

[Katherine T.]

Hello BP, 

I bought my first property in Pelham, Alabama September 2015. I am still holdiing it and now I am getting quiet discouraged and almost doubtful of investing via rentals. The property is marketed in Craiglist, multiple MLS, signs on the property/ neighborhood etc. At first, I gave the lack of tenant to the slow winter season. Things are picking up now, more traffic but no serious takers. I have since dropped property from $1050 to $925. This is the fair market value to like homes in the location. The property is in good condition. Its a 3b,1.5 b in a section B neighborhood. I have considered section 8 and I just called our local county to enquire of requirementts. I have put plans was to move to property 2 on hold until I fill this one. Is winter a generally slow period and if so should one avoid buying investment rentals at this time? Any suggestions/ tips/comments will be greatly appreciated.

[Jay Hinrichs]

@Katherine T.  very common issue I see with landlords especially new ones they don't realize how vacancy can affect the investment.. they try to rent for top dollar does not rent.

its better to drastically lower rent to get it full than to have 4 or 5 months of vacancy.. you just lost  5X 900  4500 dollars... if you would have started at 900 you might have rented it right away and be 4500 dollars to the good.

what we like to do is offer FREE First months rent... just get nice deposit and have rent come in 2nd months.. again ONE free month to not have a vacancy is  12/ 900 = 75 a month discount first year  75 X 12 = 900  compare that to the 4500 you have already lost and will never recapture...

you will learn these things over time its just costly.. to go through the learning curve.. also the risk of theft and vandalism is real.. when you have vacant units.