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Potential rental property...

January 29th, 2010 at 02:41 pm

We looked at 5 different places last night with our realtor. We are very interested in a small townhouse (one side of a duplex). Built in 2006, it comes with all newer appliances plus a nice washer and dryer in the unit. The best thing is that there are already tenants in the place (a husband and wife) which means that we would have immediate occupancy. Calculating the current rent payment they pay vs. our costs in carrying the place would net us $250 each month. Since it's a newer building, I don't foresee a lot of maintenance expenses anytime soon which is also a plus. What do you think?? Oh, and it's only listed for $78k -- I would offer around $68k and see where we end up (I'd say somewhere around $72k hopefully).





Posted in Uncategorized | 10 Comments »

10 Responses to “Potential rental property...”

  1. creditcardfree Says:
    January 29th, 2010 at 03:34 pm 1264779260
    1264779260

    It sure looks like a nice deal.

  2. all4money Says:
    January 29th, 2010 at 03:39 pm 1264779567
    1264779567

    The other 4 we saw last night were around the same price tag and they were dumps! They were single family homes but were built in the 50's-60's and needed a lot of updating and fixing. So, we figured if this townhouse was listed at the same price and since it doesn't need much work, it would be a much better deal for our needs. Oh, and there are no HOA type fees or anything to worry about here either.

  3. gamecock43 Says:
    January 29th, 2010 at 03:45 pm 1264779958
    1264779958

    Such pretty views! It looks like you have so much land!I cant say go or no go because I dont know what is out there- but it looks like a good buy.

  4. all4money Says:
    January 29th, 2010 at 03:50 pm 1264780258
    1264780258

    Yeah, it's a hard call... here's more specifics. It's located smack dab in town - easily walkable to "main street" with lots of shops and restaurants. Can also walk to a park and the library. I really like the location and as you can see, the mountain views are nice too. I'm thinking that this might be a "safe" bet as our first rental property and even if it were to be a flop, we wouldn't lose out too much in the end with the location and the initial investment price being low (at least in our area, anything below $100k is a steal). The townhouse has been for sale for around 9 months. The unit beside this one just went under contract -- don't know what the price sold is yet but they had listed that one for $75k (a different listing agency). I'm doing my homework Smile

  5. gamecock43 Says:
    January 29th, 2010 at 06:38 pm 1264790335
    1264790335

    Continue to Do your homework and see what the property was purchased for. Generally if you go to your towns tax assessors page, based on the address it will have a pull up of the property sq ftage, permits pulled for it, and a sales history. This way you can see what the previous owner paid for it.
    But based on what you said- the walkability thing is HUGE! Its just the 9 months on the market thing that would worry me. At that price in that condition it looks like the best bet in town and the 1st place investors would look! Do you have any idea why it has been listed so long with no bites? And dont RELY on what the selling realtor says- they lie. They are not 'sposed to but I have found that they do.

  6. homebody Says:
    January 29th, 2010 at 10:14 pm 1264803284
    1264803284

    Good luck. We have been landlords for 1.5 years. I don't know yet if we are going to do more, but am supposed to be saving for something to go in on with my brother at the end of this year.

  7. all4money Says:
    January 30th, 2010 at 04:40 am 1264826419
    1264826419

    The developers of this "complex" built 3 duplexes (6 units total). All units have sold except for 2, one of which we would like to buy. The tax value of each unit is at $68,500. I did see that the unit next door in the duplex that we are looking at has a mortgage of $81k on it and the mortgage closed in Dec 2009!! What the heck? I don't know what the final sales price of that unit was but apparently, the new owner took out a huge mortgage. I'll have to ask my realtor since he can get completed sales comps... Oh, and spending 9 months on the market isn't so bad for our area --- we have had our house listed for sale for over a year so far with no offers and it is priced very well. My friend has a spec home for sale for over 1.5 years now too with no offers. Things are just moving VERY SLOWLY in our county.

  8. debtfreeme Says:
    January 30th, 2010 at 06:23 am 1264832601
    1264832601

    What do yo know about the other owner? Do they use it as a rental too or are they the owners?

  9. gamecock43 Says:
    January 30th, 2010 at 01:35 pm 1264858553
    1264858553

    It sounds like the other owner is an investor who put as little down as possible and rolled closing costs into it. Investors tend to have larger interest rates as well because it is not a primary residence loan. As long as a property cash flows- rent profit comes in- many investors don't worry about paying down mortgages and stuff like that.

    It looks beautiful- you obviously live in a beautiful town.

  10. all4money Says:
    January 30th, 2010 at 05:48 pm 1264873738
    1264873738

    I don't know about the other owners of the other units... that's a good question. I'll ask my realtor to see if he can figure out if the owners live there or are they all rentals.

    So far, I'm still quite excited about this potential addition to our portfolio. Thanks for all your input!

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