All Forum Posts by: Patrick M.

@Anthony Gayden suburb of Milwaukee.  

@Joe Villeneuve  Also, there is a limit in every rental market, of just how high in rent

the renters will go. Upgrade accordingly. As you're finding out, any
upgrades above the market/area limits, are what gets you rented before
your competition...but doesn't increase the rent.

Bingo.

Buyers look for certain things, that renters don't...and buyers will pay for them, and renters won't. Comparing your SFH to any apartment, regardless of how high end either is, doesn't work. Apartment renters and home renters are two different groups.

Rental house market in my area was very limited. Mostly apartments. A few SFH 2-3 beds in rough shape. Looking back on my sheet I had 3 comps (size, bedrooms, updates) ranging from 1500-2000.

@Brian Ellis PITI is 1330.

Rehab is 15k

Down payment was 42k. 

Goal was 4-500 over PITI. Currently sitting $500 over.

I was the same way as you that I had certain thresholds for paying rent.  I also knew I would buy eventually and wasn't stuck as renter due to credit/etc.  

@Jay Hinrichs.  Pretty much summed up my thoughts at 2am this morning.  It shouldn't be this hard and is it worth it?  I know you have a ton of experience so thank you for chiming in.  I don't have enough properties to average it out by the way :) (YET!) 

@Theresa Harris I agree with you completely.  I haven't received that comment from prospective tenants just friends, family.  I'm also thinking out loud as to why my place isn't renting.  As always it seems its another case of pricing.  Even though I feel I am competitive the renting market doesn't seem to feel the same way. 

@Jay Hinrichs thanks for the response.  You're right.  The math certainly doesn't lie it's just a matter of accepting it.  

@Jaron Walling good point. Wasn't bought for 250k.  That's appraised value after rehab.  

@Brandon Roof @John Warren yes I'm afraid you might be correct. For comps I can really only go off the nearby luxury apartments which I am priced competitively with. For SFR there isn't much available 1 comp duplex at 1850 as well.

As far as they might not value the updates I am starting to agree there too.  It seems to me that this particular house is a 1650-1700 regardless of how much "lipstick" you put on it.  This is my first place but my eyes are opening to the fact that renters might care more about the $100 price difference than a brand new kitchen.  The new white kitchen is just a bonus.  

I lost some sleep last night.  I'm having problems renting my SF.  The price is now at 1850 plus utilities.  

The argument often heard is "well you can own a home for what you're paying in rent."  So I wanted to look at some numbers.  

My SF is worth 245-250k.  at 3.5% down (the famous it's cheap to buy a house you only need a little money) you need 9k cash.  (without closing costs).  
Your mortgage is still 1730.  plus utilities and maintenance.  
As the story goes the more cash you have to pay down the lower you get your mortgage payment.  

My point is the famous 3.5% down puts a person in the same range as my rent price.  Without the maintenance costs.  

Is renting supposed to be drastically MORE affordable than buying?  As in rent price at 1650? 1700? 1500? for a single family in a B area.  Are they supposed to be renting a nice updated home for significantly cheaper than the cost to own?

Keep in mind the house is updated which is hard to come by at this price point in our area.

@Deb Neumayer  good point on the animals never thought of it that way.  just figured being " pet friendly" we better than most.  I'll get that updated.  Thanks.

moved simple "Pet Friendly" to the front of the requirements list instead of the end.