tenant question

[Mike D.]

So what type of people do you usually end up with in your rentals? What are their professions/jobs? I'm trying to gain some perspective on the types of people that make good tenants(I know working class/steady jobs). It just seems that where I'm from(NJ), in the rental markets I've driven around, it seems very lower end. It doesn't seem like the type of place with reliable tenants.

[Chris L.]

Mike,
I think the type and quality of renters is region and specific location dependant. For instance, the midwest has generally lower housing prices which makes the possiblity for a profitable rental business. Within Fort Wayne, You can spend between 15K to 150K for a rental house. The 15K house will rent for $450-$550 while the 150K house will rent for 1k-1.2K. While you will are more likely to get a more reliable tenant for your 150K house, you will be lucky to break even. The profit margins work best for the lower end homes in my experience but you do have more tenant issues. (That is why I find my property manager to be worth every penny that we pay them.)
We do not have any "warzones" in Fort Wayne but most tenants at the low income scale are living paycheck to paycheck and are usually one life event away from not being able to make their rent payment. With that said, they need a place to live as well and many of them are reliable long term renters.
Good luck. If you do not find the right numbers in NJ, there might be some other areas that will make the numbers work out better.