All Forum Posts by: Yoni Osteen

Very helpful @Chris Mason - thank you!

Thank you for the feedback @Will Fraser,

Feel free to let me know if this is not the etiquette (new to these boards), but how would you assess if it is a stable investment strategy? It is a desirable property in a growing area, and I've run a stress test - assuming I have to drop rent, have 8% expense ratio and 15% vacancy rate, I'm not dropping to the negative, but have a rather weak 2% ROI. Of course, that is a stress test and the ROI for new purchases in the market in my area are pretty weak in general right now. It's a seller's market, but if I were to hit the that 15% vacancy rate, I'd consider this a bad investment.

Am I overly concerned with the potential vacancy rates at this sector of the bell curve or would you advise a different tact if I'm looking for something stable?

Much appreciated,

Yoni

Hi all,

So, I'm looking at buying a property in Deltona (suburban Central Florida), and the rental rate of the previous tenant was $1650, which makes sense for the property. It is a nice spacious 4 bedroom. 

My concern though is that many people wouldn't be able to afford it (this is high-rent for Deltona), and if you are a family who can afford it - wouldn't you just buy? You can get a decent enough 4 bedroom in the area for $200k. 

My real estate agent hasn't led me wrong before, and she responded to this concern with "many renters are not able to purchase due to lack of credit and available cash reserves", but isn't that the definition of a risky tenant, and how many of those renters can afford high rent (this is 30% higher than the median rent for Deltona)?

I heard that there was data on what share of homes in an area are rented vs owned, so I thought that might lend insight, but don't know where to find that or how granular it gets.

Any advice would be appreciated.

Yoni Osteen

Hi all,

So, I'm looking at buying a property in Deltona (suburban Central Florida), and the rental rate of the previous tenant was $1650, which makes sense for the property. It is a nice spacious 4 bedroom. 

My concern though is that many people wouldn't be able to afford it (this is high-rent Deltona), and if you are a family who can afford it - wouldn't you just buy? You can get a decent enough 4 bedroom in the area for $200k. 

My real estate agent hasn't led me wrong before, and she responded to this concern with "many renters are not able to purchase due to lack of credit and available cash reserves", but isn't that the definition of a risky tenant, and how many of those renters can afford high rent (this is 30% higher than the median rent for Deltona)?

I heard that there was data on what share of homes in an area are rented vs owned, so I thought that might lend insight, but don't know where to find that or how granular it gets.

Any advice would be appreciated.

Yoni Osteen