All Forum Posts by: Mike Nicholson

I live and invest in a small rural town in the Upstate of South Carolina. The town is experiencing somewhat of a "boom" I guess you could say due to new industries moving into this area. There are a couple of new sub divisions breaking ground here which will result in approximately 200 new homes in the $175K - $225K range. I currently own a couple of rental properties here that rent in the $450 -$600 per month range. I am in the process of purchasing a duplex in this same town that rents in a similar range. My question is this, will these new homes being built negatively affect the rental market that rent in this $450-$650 range? My thoughts are the new homes would not affect rental property in this range, negatively or positive. Mortgage payments for these new homes would start around $900 - $1,000 per month for most people I would think. The reason I ask is that I have started to notice a few local landlords putting some of their rental properties up for sale, actually a lot. Am I missing something? Are they thinking with the influx of new construction that it will affect the rental industry? Any insight or thoughts appreciated.

Thanks 

Mike

I live and invest in a small rural town in the Upstate of South Carolina. The town is experiencing somewhat of a "boom" I guess you could say due to new industries moving into this area. There are a couple of new sub divisions breaking ground here which will result in approximately 200 new homes in the $175K - $225K range. I currently own a couple of rental properties here that rent in the $450 -$600 per month range. I am in the process of purchasing a duplex in this same town that rents in a similar range. My question is this, will these new homes being built negatively affect the rental market that rent in this $450-$650 range?  My thoughts are the new homes would not affect rental property in this range, negatively or positive. Mortgage payments for these new homes would start around $900 - $1,000 per month for most people I would think. The reason I ask is that I have started to notice a few local landlords putting some of their rental properties up for sale, actually a lot. Am I missing something?  Are they thinking with the influx of new construction that it will affect the rental industry?  Any insight or thoughts appreciated. 

Thanks!

Mike

Thanks again everyone. Yea, I have ruled out the HVAC. I think I am going with either a Williams 60,000 btu floor mount console heater or an Empire 60,000 btu console unit.  Should be somewhere around $800 or so and then get someone to help me install. I already have a vent in the house I can use where an old coal stove heated the house.  Hopefully everything goes well. 

Mike. 

Thanks everyone, a lot of good info here. @Andrew B. I have thought about baseboard heat and researched. I have heard they can be very expensive to run and would spike the power bill a good bit. 

@Geoffrey Schnake yes, it does sound expensive!  And they are quoting a 2 1/2 ton unit. This would be duct work and all. 

I have yet another quote scheduled for tomorrow for a HVAC quote as well as mini split quote. 

@Troy Gandee the rental units you have the mini splits in, how many sq feet are they?  I am just worried 4 zones may not do the trick?

Thanks again everyone!

Thanks guys, I have thought about the mini split as well however I have not received a formal quote on one.  I have heard mixed reviews however from what I have been told could save me around $2K from what the HVAC would cost me.  I would not be able to install myself unfortunately.   The house has 2 bedroom, 1 bath, living room, formal dining room, kitchen, and laundry room.  Would a mini split work in this situation?   

Hey John,  apprx value of this house is $40K.  Rents for $550 per month.  This house is not really in a "nicer" neighborhood, on a 4 lane Hwy somewhat out in the country.  You are from the upstate, its in Woodruff, Hwy 101.

Thanks,

Mike

Hello!  In need of some advice and I know you guys can help me.  I am a small time landlord in South Carolina, currently only 3 rental homes.  I have an older, 1200 sq ft rental home (1940) I have rehabbed and turned into a rental, own it free and clear.  I currently have 2 window units for A/C and a small wall mount gas heater for this house.  I have rented this home for approx. 2 years and the past tenant says there was no problem cooling the house however when it gets really cold it is hard for the small gas heater to keep up.  I have researched  2 options.  1)Install HVAC, central heat and air unit,  or   2)Install gas furnace that is big enough to heat the home and keep the 2 window units for A/C.   The huge difference is the money involved.  I have received 4 quotes for HVAC system, duct work and all, anywhere from $7.5K to $10K.  Quotes for new heater is around $1,500.  Huge difference.   I have built up around $10,000 in the account that I use to run this rental property out of,  so the money is there.  I just don't want to completely drain this account for this HVAC, 2 years worth of cash flow for this property!   I plan on keeping the property long term and keep renting.  Should I spend the money to install HVAC or install the big gas heater and keep the window units for A/C that work just fine for this house.  Yes, I am leaning towards putting in the gas heater and not the HVAC.  Your thoughts? Any help would be appreciated. 

Thanks,

Mike

Hello @Harjeet Bhatti For the commercial loan with both properties, do I have to be LLC, INC. etc. I currently just hold my investment properties under my personal name.

Thanks,

Michael

Can anyone recommend a lender / bank that considers mortgages for rental property.  I am somewhat of a newbie with only 3 properties that I paid cash for so I have never borrowed other than the home I live in.  I have found 2 houses now that I am looking to purchase and not use my money.  Would I need 2 separate mortgages or lump both into 1?

Thanks!

Mike

@Seth Borman  you a few of the vent free natural gas units?  If so, have you had any trouble with them? Gas company telling you can't use them.  Are they primary heat source in those rentals you have?

Thanks,

Mike