All Forum Posts by: Patrick M.

@Haseeb M. it's a two fold problem. I had qualified people at my 2k price until a health condition changed their circumstance and they backed out. right now I have applicants interested at the 1850 price.  trying to get their applications by the end of day today to move forward.  if they are qualified I will be "ok".  If not I'd like to reduce to 1750 and get a new cycle of interest. 

I tried doing individual appointments in 10 min intervals. Recently changed to 1 hour time slot open house. Unfortunately school has now started in this area so I am thinking the price adjustment will generate the new interest. At 1750 I still hit a $400 margin over PITI. For my area and the next suburb over there is a lower 3/2 duplex asking 1850. There is a 3/2 townhouse (no pictures) for 1650. that is my closest comps right now.

I have gotten people wanting to open group homes, don't realize you have to pay the utilities, or didn't know there was a fee for the background check (it's on my welcome email) one lady just wanted higher rent to get back on section 8. 

I have had a lot of showings, few returned applications.  I have switched to encouraging people to fill out their apps on the spot. I have probably missed a few good applicants by letting them walk and emailing them an application after the showing. 

Some of it's process. some of it's price.  some of it is bad assumptions of how renters think.  I try to avoid saying "it's just a rental" and put a quality place out there but at the same time there is only so much a MAJORITY are willing to pay for.  I may be priced above getting the MAJORITY to look at  my house both qualified and unqualified prospects. 

@Jay Hinrichs. Thank you. Yes that’s the big picture I’m looking at. I did potentially handicap myself a little on scaling faster within the first year. However some budget adjustments personally can fix that as well. 

@Jay Hinrichs @Dan H..  I look at this from a long term buy and hold stand point especially with my personal financial situation.  Of course I want to cash flow and make a return however a $900 water heater isn't going to cause my family to miss a meal.  Yes I over spent on the rehab thinking it would help with the rental price.  I am wrong.  Yes it will be cash flow negative the first year.  Appreciation in the area is about 4-5%.  There is a shortage of affordable single family homes (starter homes).   So while I understand your point I'm more interested in the long term and looking at appreciation and cash flow not just if I get $100 extra in my bank account.  There is also the cost associated with learning which is what I'm experiencing in holding costs right now. 

@Daryl L.  Zillow, trulia, hotpads cozy.co.  Realtor won't pull from cozy.co due to the Wisconsin addressing system per their tech support.  Can't get onto realtor.com without going through Cozy.co.  

@Joe Villeneuve the two comp properties that were similar in sq ft were 

Prop. 1: 1187 sq ft...outdated, dark, dirty, house for $1500.  

Prop. 2: 1494 sqft for $1875. with an updated kitchen. fresh paint. clean.  (similar to mine)  

so I guess throw a dart between 1500 and 1875 and see where you land.  

@Joe Villeneuve1187 sqft (no updates) at $1500.  the 1494 sq ft (with updates) $1875

@Joe Villeneuve 1800 with finished basement. 1370 upstairs 430 finished down.  1/4 acre lot. ranch 

@Denny Troncoso niche.com has the schools rated an "A".  Usnews has the district ranked 18th in Wisconsin with a 95 score card. Great schools.com has it ranked 7-8 for Elementary, 6 for middle and 8 for high school out of 10.

Costco and plenty of shopping/restaurants within 2 miles.  Fitness club across the street.  Low crime.  Easy freeway access.  New Olive Garden opening up within walking distance.  I'd say the location is pretty good.    
 

besplaces.com has average income at $36,386 with median household at 73,936. 

@Henri Meli  I have had interest some 30 people have seen the place.  I wasn't being as proactive as I should have been with applications (emailing them after showing instead of having them fill out on the spot).  I have since been more proactive with the application process.  I have one applicant that hasn't completed background check. 

Any comments I received at first was too high price (when listed at 2k).  Otherwise it's just been that they found a different place (speaks to price).  Price has been lowered to 1850 for 2.5 weeks.  Standard SF rentals around here have tenant paying rent and utilites and yard.  

@Joe Villeneuve target the lower 1/3 of the range?   The comps were literally 1500, 1875 and 2000.  Skewed towards the price I'm asking....but having a hard time getting.  Again interest HAD been high.  I have gotten applications back but no follow through. Changed my process to encourage more applications but prospects dragging their feet others not qualified.