Please Clear The Confusion
I am interested in getting into the REI realm. I am trying to figure out which type of REI I want to pursue. I've always been interested in obtaining rental properties. I guess one of the things that has kept me from doing this is that I can not understand why a person would rent a home for $1000 dollars a month when they could own one for roughly the same amount. Another thing that bothers me is my area is very high priced. I live north of Seattle, and $140000 will get you a doublewide. I can't see how you could buy a piece of property, and then rent it and make a profit considering the cost it takes to obtain a decent property around here. Knowing that I live north of Seattle, does anyone have experience with this area to explain to me how this can be done? Would you recommend that I focus my investment style to something that better suits this type of area? Please help.
Thanks,
Matthew
:-?
There is most likely a market for single-family rentals in your area. Tenants will rent for many reasons:
1) They don't expect to live in the city of an extended period (2 or more years)
2) They can't afford the downpayment (at least they don't think they could)
3) They can't afford to buy in the neighborhood they want to so they rent instead.
4) Students...(similar to #1)
5) They don't want to buy a house!
6) They don't think they could afford the upkeep and maintenance costs
7) They like the flexibility renting allows them (similar to #1)
8) Eldery who have sold their home for cash...or live on fixed income
etc, etc, etc.[ Edited by rmdane2000 on Date 06/16/2004 ]
Is there a rule of thumb when it comes to figuring out how much to charge for rent? I've looked at rents in the area, and have seen anywhere from $750 a month to $1500 a month for single family homes. When I go look at a property, I have no idea what it would rent for. Thanks,
make adjustments to the rents for size, # of BR, # of BA, location, quality of interior, quality of exterior, size of yard, who does the yard maintenance, etc.
You should be able to figure out an approximate range for your property. The properties located close to yours are generally going to be better comps.
I would look at anything but a manufactured home, they have financing problems and do not appreciate like a stick built home does. In your area the prices are very high, so I would be looking at short sales in your area, and interest only loans to try and get a positive cash flow.
Bob H.
In our opinion the manufactured housing (financing) business is not very favorable as compaired to site built housing.
Eric & Rosa
[addsig]
the m/f home will not increase in value {in some areas they decrease in value over time because the "trailer" oops! sorry! the "manufractured home" loses eye appeal with age.}as a convent. home. i only buy brick. lowest maint. and are always in good shape on the outside. they have great resale value. they also increase in value the best.....kenmax