All Forum Posts by: Will Koederitz

I've heard good and bad about rentometer. I would use zillow to show other units in the area you're looking at, see what they previously rented for and compare square footage, etc. Also, if you have a real estate agent, they can provide comps for previously rented units near the unit you are considering that are on the MLS.

50% is conservative but I think it depends on the property.  You need to see what type of property, how new, how big, to really factor in potential issues and their cost.  I think it's best to narrow properties down on other criteria, then factor in what expenses you believe the property may have.  

Thanks for the responses!

@Melissa Melia I understand what you're saying.  I was only going to market it's availability and perhaps send a survey by email to get the information needed for a tenant to qualify.  For example, "Do you make 3x the rent.."etc.  This will at least weed out half of those interested (hoping 50% tell the truth on the survey).

@Mike M. I agree with you on the pictures 100%.  The unit is empty now and I was going to ask the selling agent for permission to use pictures just for advertising. 

@Jesse Waters Good point about if you cant show it, don't list it.  I was thinking it would at least start the process and state in ad "Showings begin 4/1, subject to change" or something similar.  Good advice, thanks.

Hello,

I am wondering if it is ok to list a property for rent before I close on the deal?  I would like to list the unit, but not disclose the address.  This is basically just to start the advertising process and begin weeding out people, hopefully.  I could state that the property is available for viewing on (some date after closing) to get the ball rolling to save as much time as possible.  I do NOT plan to show the place until it is in my name, because I know there is a liability for the seller.  I am new to this and am not sure if I am thinking about this correctly, so any input is greatly appreciated!

Thanks

-Will

Yes, I had done that calculation several times. Depending on down payment and fees needed up front the cash on cash ROI was ~25-30%. Thanks for your feedback!

And I'll add, monthly note is estimated to be ~ $650 after all required expenses. 

Garrett, thanks for the reply! 

Yes, I forgot to mention some numbers. The taxes are $1142/year, insurance is $600/year (will most likely change to a little higher), HOA is $145/month + gas/water. I will have PMI of $29/month initially due to putting 15% down.

The unit is very simple and part of a small complex so I do intend to do the management myself to start. Thing like the hot water heater are common equipment and therefore any replacement expenses come from HOA. It appears to be a low maintenance unit...at least as of now. Only repairs initially are cosmetic, including a little caulk and paint, and a few things to freshen it up.

Thanks!

Hi, I am new to REI and to BP. I would like to share my recent (and ongoing) purchase and get feedback from others who are experienced on here. I plan to use this as a rental income property.

The property I decided on was listed for $69,900, a little over 600sqft, and needed no major repairs after home inspection. 

The rental market in the area appears to be large. Comparable units were renting for $950 that were within a half-mile radius over the past year. 

I was able to get the property for $63,000, with 15% down and 5.25% interest rate. 

Looking at the unit I see several positives and negatives.  This is a loft style unit, which I believe makes the place feel much larger due to the layout.  On the other hand, it doesn't technically have a separate room which isn't preferable to some renters.  I do think the candidates for this style place will be single professionals, hopefully keeping the potential tenants as "good" tenants.  Because it probably won't be shared by two people, I believe the tenant to be better due to having a decent salary to afford this alone.  Long term, I feel it may be more difficult to sell a loft as opposed to a typical property with separate rooms, etc.

I am new to this and did about 3-4 weeks hard research and looking at many places with my realtor, looking at comps, surrounding areas, etc.  I figured it was time to just do it and give it a try and the learning experience would be worth it either way. 

I am just looking for any feedback on this situation, good or bad, things I didn't see, etc.  Thanks for reading and I hope to hear some feedback soon!

-Will