Approach to your Rental Property(Purchase Price/Rent Ratio)

[Joey Fontenot III]

Hey guys

Just curious what is working for the landlords out there acquiring property right now in 2011. What is the model you guys are looking at for purchasing these properties in your market. How much are you guys paying for your properties, what bed/bath combo - sqft, how much are they renting for, and how many are you trying to buy this year? In addition, what are your plans 5,10,20 years down the road for the properties. Hang on to them as long as possible or lease to own them after you pay for them. Thanks in advance for the replies

Joey

[Account Closed]

I think you will find a wide variance of opinion for a question like this.

Rental markets differ drastically across the country. Some areas have many cash flowing properties with little hope of ever appreciating. Some areas have a glut of rental properties and may see low vacancies for awhile. Some areas it is hard to find cashflowing deals, but the properties have had good appreciation over many years.

I tend to look for properties that have opportunities. They have to cashflow in their existing state. In the past my focus was on single family homes. Now I'm looking primarily at multi-family units.

I have found that there are always deals available. sometimes the deals are hider to find than at other times. Knowing what is a good deal though often takes time because it is important to know your market, know the neighborhoods and have an understanding of what is going on in the community.

I will very likely still be purchasing rental properties even 10 or 15 years from now.