All Forum Posts by: Rahul Bhandari

Oh yea now that I can see the chart clearly. Units in the 50k -125k typically have tenants in the +/-600 credit range. There are always outliers but mostly likely your tenant pool are going to be D to C+ if you're lucky.

I wasn't aware of a correlation between tenant credit and FMV of a rental property. Do you have data for that? A $125K house is middle class in some parts, and would have corresponding buyer and tenant incomes and credit.

I do see a correlation in my areas when it comes to rents $600/mo (and under) and tenant pool quality. A family of 4 that is spending $600 for housing is spending the recommended 1/3 of income for housing. But $1800/mo for a family of 4 is poverty level, according the feds definition of poverty. Way too close to the edge, very month to month. Those applicants will rarely have good credit or consistent income. Take a look at a federal or state website and their suggested budgets for this income level. It's pretty much not do-able for most people. That's why so many landlords look to SSDI and Sec8 .

I think in general areas with low property values do tend to attract lower income residents and it may over index on lower credit residents as well. I don't have data on credit ratings at a zipcode levels but it does seem right if you sample this http://www.equifax.com/places/#url

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@Ian Hoover I don't have experience with below average renters. Does the property management company not help deal with issues with rent not being on time?

@James Wise thanks for the welcome! Excited to be part of the community.

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Thanks for all the responses everyone.

@Jared Maltbie some of the areas have pretty high rents $1200+. What are the types of issues that would flow down from the property management company to you? Would they not take care of most of it?

@Eddie Werner - that makes sense - I agree local knowledge is critical. I know the areas in Oklahoma / Nor Cal but its helpful to get other people's thoughts on the other areas.

@Larry Turowski I have the property tax information for some of these zipcodes and calculated net yield after vacancy and property tax. Though the tax rates in NY are high the net yields are still pretty good after that. Are you an investor in the 14621 neighborhood?

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The table didn't show up so here's a link to the data:

https://docs.google.com/spreadsheets/d/1bPPM18sQDk...

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I'm looking at some data to identify the best areas to buy and hold. I'm less familiar with buying in some of these areas - so I thought I'd reach out. These zipcodes offer really high rental yields even accounting for the vacancy stats. I'm wondering what's the catch?

Zip	City	State	Median Home Price ($)	Average Rent ($)	Gross rental yied	2013 Rental vacancy rate by Zip (%)
13165	Town of Waterloo	NY	79,100	1,365	20.7%	6.7
13411	Pittsfield	NY	76,400	1,424	22.4%	7.4
14125	Town of Oakfield	NY	87,500	1,400	19.2%	4
14437	Dansville	NY	81,300	1,416	20.9%	3.7
14445	East Rochester	NY	95,800	1,289	16.1%	1.4
14510	Mount Morris	NY	72,600	1,399	23.1%	4.1
14517	Town of Nunda	NY	78,100	1,441	22.1%	7.5
14605	Rochester	NY	40,900	828	24.3%	3.6
14608	Rochester	NY	51,100	866	20.3%	6.3
14611	Rochester	NY	47,400	855	21.6%	4
14621	Rochester	NY	44,700	848	22.8%	5.4
14715	Town of Bolivar	NY	47,400	1,401	35.5%	4.6
14727	Town of Cuba	NY	69,800	1,456	25.0%	4.7
14735	Granger	NY	57,800	1,402	29.1%	5.9
14739	Town of Friendship	NY	46,300	1,395	36.2%	6.5
14806	Town of Andover	NY	49,000	1,402	34.3%	5.1
14813	Amity	NY	55,100	1,433	31.2%	4.2
14891	Watkins Glen	NY	106,800	1,449	16.3%	1
14895	Wellsville	NY	50,300	1,392	33.2%	3.6
15045	Glassport	PA	53,100	776	17.5%	2.6
15110	Duquesne	PA	44,500	780	21.0%	6.4
15132	McKeesport	PA	46,000	780	20.3%	2.2
15148	Wilmerding	PA	46,500	806	20.8%	0.5
15210	Pittsburgh	PA	54,400	876	19.3%	3.4
21521	Barton	MD	66,400	1,217	22.0%	5.1
21562	Westernport	MD	59,600	1,279	25.8%	4.9
44055	Lorain	OH	52,500	712	16.3%	1.3
44102	Cleveland	OH	48,000	821	20.5%	6.2
44104	Cleveland	OH	43,200	835	23.2%	8.3
61401	Galesburg	IL	64,200	1,058	19.8%	4.1
73108	Oklahoma City	OK	43,900	653	17.8%	3.8
73111	Oklahoma City	OK	49,200	718	17.5%	0.7

1 Vote

All Forum Posts by: Rahul Bhandari

Rahul Bhandari has started 1 posts and replied 5 times.

Post: Really high rental yields for cheaper housing - what's the catch?

Post: Really high rental yields for cheaper housing - what's the catch?

Post: Really high rental yields for cheaper housing - what's the catch?

Post: Really high rental yields for cheaper housing - what's the catch?

Post: Really high rental yields for cheaper housing - what's the catch?