Vacancy Rates And Lease Options
I am looking to purchase a home in an area that has a high vacancy rate (around 14%), and get a tenant/buyer in there.
My question is how easy is it to find tenant buyers in cool markets with high vacancy rates? How does finding a rent-to-owner compare to finding a straight tenant?
I'm looking to buy in a neighborhood that has a lower than average vacancy rate for this city, but it will still be around 9-10%.
Thanks!
Kevin
That depends--why is the vacancy rate so high? If the neighborhood is decent, you should have no problem if you market properly.
[addsig]
LOK,
The city is Austin, TX and the vacancy rate is high because of the tech crash a few years ago and all the layoffs since. The good thing about this is that properties can be bought at much cheaper prices now, and getting postive cashflow is not difficult. By marketing properly do you mean an ad in the paper and a sign at the house?
Thanks,
Kevin
I don't use a sign (not that there's anything wrong with that). I focus on bad credit Buyers and put them in my program where it will be treated as a refi after 12 consecutive on-time rent payments. Since you are opening up a whole new pool of Buyers, vacancies shouldn't be much of a problem for you.
[addsig]
I have a home in CA that I made significant upgrades to. I pretty much remoled the whole thing. I was considering renting out for a year so that I can build more equity before selling it. Now that I hear more and more about the rent-to-own option, I am seriously considering it. Can someone provide me with the details of how this works.
Also, anyone familiar with federal tax laws as they relate to capital gains for investment properties sold after 1 year please enlighten me with this knowdlege