All Forum Posts by: Jodi Slocum

We're in the Northwest Arkansas(Bentonville/Rogers) area and those numbers are close. Some examples that we've encountered in the last year while exploring up here are:

Purchase price 76k, mortgage 450, rent 975

Purchase price, 62k, mortgage 350, rent 1125

Purchase price 90k, mortgage 550, rent 1200

I live in Northwest Arkansas, specifically the Bentonville/Rogers area. We've only just barely gotten our toes in the market here, but we've lived here for 16 years so if you want to throw some general questions my way go for it! :)

Taking the jump on your first one is scary, at least it was for us! What really helped us was watching my mother in law buy a house here. We said to ourselves, "We can do that!"

Once we bit the bullet and did it, it was a great feeling. If you've done all the research you can and feel prepared, maybe you are. The community here at BP is amazing. If you want some of the pros to double check you, post your numbers when you find a property you're interested in and they'll help you along in case you missed a calculation somewhere.

The one thing we learned was that next time we will over estimate our rehab costs a little more. We did ok, but still spent about 1k more than we thought we would. Take the number you think you might spend and add more for cushion.

We also learned to do a lot more than we intended on doing. For example, when I called for a plumber and got estimates in the 500 to 700 dollar range for running a T and P line to the ground. We said, "For that price, we'll learn to be a plumber too."

You can do it!

Jodi

We only have 1.5 tenants(1 property is my mother in law's that we manage), but we give the choice of depositing it into our account, paying online at Williampaid or mailing it to our P.O. Box.

As long as it gets here and doesn't bounce, I don't care how I get it.

As far as I know, WilliamPaid has an option of credit card payments and from how I read it, I think the fee is passed on to the tenants, but I haven't had anyone take us up on the online payments yet so I am not positive.

Jodi

To update...

Thanks for all of the tips and input! We ended up lowering the rent to 1095 and got some people in there. Deposit and rent paid on Tuesday and they moved in today.

All in all, we're happy and we got some tenants in there that love the place. I'd much rather have people in there who love it than someone who is settling, which is the feel we got from some other people when we had it at 1200. I hope the ones who love it will take better care of it, but we'll see. It's been one big learning experience. From landscaping and laying concrete (all by myself, I might add) to getting people in there. I can't wait for the next one....

Jodi

We are not in the MLS. Can you get listed in the MLS if you are managing it yourself and not working with a realtor?

I used postlets to market, which goes to Zillow, Trulia, Hotpads, craigslist and a couple other sites that I am not terribly familiar with. We also have a sign up on the major road nearby directing to the property, which is about a block away.

My husband also posted a listing on his internal work boards, 1 online and 1 flyer in a building a couple blocks away. He works for the major company around here that brings everyone in for work.

That's exactly one of my concerns Vicki.

As an example, a call I got last night had 3 dogs, "some" cats and 2 birds. She had mentioned that they can't find a place where they can bring their pets. I can't imagine why!

On the other hand, we've also had about 3 or 4 sets of people that we'd have been happy to rent to on first look. Of course we hadn't done credit checks or anything...so that would remain to be seen.

Jodi

One of them went up May 30, the other on about June 2 or so.

I am not sure on the marketing period since I am fairly new at this. We are managing a property that my mother in law recently purchased and hers was rented in about 3 days. Hers was a 3 bed for 950 though. She has properties in CA as well and she said renting it that fast was a fluke in her experience.

In our area, we generally get a lot of activity in the summer with people moving in or out as school ends.

Jodi

I know this is a super late response, but what he heck!

I am fairly new at this too, so not sure how much I have to offer, but I wouldn't mind getting together every so often to chat. Maybe those of us here can start an informal group.

Jodi

We've finally gotten possession of our first rental home after closing in March with an agreement for the owner to stay until May 30.

We put it up for rent last Friday for 1200. It seemed kind of high to me when we set it, but there were 3 other properties in the area that were comparable that were 1100 to 1200 so we went with what others seemed to be getting. The one for 1100 was not updated, old brown paneling and such...but it did have a garage where ours does not. Our is also completely remodeled on the inside.

We've gotten what seems to me quite a few inquiries, probably about 25 + phone calls. We've had about 10 people out to look at it in the week we've had it up. We've had 2 sets of people take applications, but I don't expect to get them back. It's been over 3 days since we've heard from either of them.

Some feedback we have gotten is the lack of garage. Other factors would be that most of the people coming out don't "need" a 4 bedroom, so it's hard to compete with the prices of 3 bedrooms being around 900 - 975 around here. Everyone that comes out loves the house, that it's an older house but new inside. It was built in 1940, and has a lot of curb appeal.

Our mortgage is 350 including taxes, insurance and such so we have some wiggle room....but we are also allowing for a larger repair allowance than most since we expect to have higher repair costs due to the age of the house and some things we know will need to be fixed/replace in the next few years.

So my question is when you are setting your initial rent on a home, how long do you leave it before you lower it to find the sweet spot? I am leaning towards lowering it 50 - 100 since we haven't had any serious prospects in a week. My husband is leaning towards sitting on it a little longer.

Thanks for any input!

Jodi