People are renting because, how many tenants do you know who have 20% to put down on a rehabbed property? Few.
1A. Can’t they just go buy a house if they have cash? Yes, and they DO. Can they get a loan for #1 to work? Nope, mortgage companies want their loans on property that will PASS inspections…12 months no one in a property = mold, no lights, no gas, no water pipes…see, it’s no longer a ‘conventional’ mortgage…so, not many can get financing…even WITH 20% down.
Sect 8: No, I’m talking about in general. I HATE sect 8 at the moment. They try and SCREW the landlord out of rent during the ‘negotiation’ process at the start. Old timers know what I’m talking about here.
Finding tens: It is absolutely simple finding great tenants right now. Lots of vacancies of sub-par houses means I have TONS of tenants…my list that is only 2 weeks old runs me over 500 tenants currently. I think I can find a good one from that list. And I do.
Cities to avoid? I won’t say anything about anywhere else other than my area. I’m a pretty smart guy, but I’m not a know-it-all…usually. I know MY market, mid-Michigan. I can tell you alot about other cities, but each city is different…but none are are GOOD as mine at the moment.
Call if you’d like, you’d be the 3rd person who does this week.
James,
989.213.6108
PS - Oh, spend the 1k dollars to fly, stay for a few days to look at the market.
Does anyone know where to find 2009 statistical data on strong rental markets
across the country? Trying to identify cities (200k populations and above) where
the rents for single family homes averages 1%-2% of the prop value.
Posted by michaela-CA on April 19, 2009 at 17:28:43:
Jim,
please keep in mind that there is not ONE MARKET in each city. There can be vast differences in purchase and rental cost and income. Some areas are more in demand due to various reasons, like schools, entertainment, proximity to… whatever. In the same city you may have neighborhoods with +500K homes and other areas for -100k homes.
Of course, you can get some averages and probably say that San Francisco is not a good market to get positive cash flow, if you buy rentals, and other cities may do better.
But overall keep in mind that within each of the cities there are many different sub markets
Well Jim…anyone here knows I live in Michigan…land of the Big 10 and soon to be bankrupt Big 3.
Land of golden honey right now for cash flow houses…3-12k purchase, couple thousand rehab. 30-45 days holding.
Net of 450-550/month. Add Option Deposits and/or 1st time home buyer…
The actual value of the properties are 40-65k, but they cashflow very, very well.
Give me a call if you’d like to chat.
James
989.213.6108
Just trying to understand. If RE is so cheap, why are people renting instead of buying. Are you also talking about Section 8? I am looking for cash flow properties to hold, but in a depressed economy, is it still easy finding tenants? What cities to look for in Michigan to avoid war zones? Thank you.
