asking 85,000. Only cash flow you would pay for would make you pay 39,000. This seems unreal, is there somebody out there who takes over half the asking price off?
woodell,
You would need to check with the county.
woodell,
Or check with city zoning. This sounds like a really good deal to me! Maybe you can’t steal it at way below asking price, but if you can eventually sell off the lot… How much are you now paying for rent? Wouldn’t you rather be paying yourself?
Since it is a 1-bedroom, and near the governor’s mansion, I would think it could be ideal for a furnished rental. Should be very easy to manage as you will be right there. A fully-furnished unit brings in 2 or 3 times the rent of unfurnished. You would pay all the utilities. The rent could be $1200-$1800/month. Deposit $400. Pet deposit $250.
It will cost $2,000 minimum to furnish the unit. Is there a washer/dryer hookup or a shared laundry? This is really important. Also, is there a pet yard? Dogs are MONEY IN YOUR POCKET. Yes, they are also more cleaning (pet hair). You hire an on-call cleaning person.
Mint out and furnish 1 unit. Then you live in the other that you fix up as you live there.
Good luck on this exciting project!
Furnishedowner
Thanks everyone for your advice.
If anyone cares…
The deal tanked. The owner wouldn’t budge past 73,000 so I’m moving on.
asking 85,000. Only cash flow you would pay for would make you pay 39,000. This seems unreal, is there somebody out there who takes over half the asking price off?
The short answer is NO! Although that will occassionally occur, this is not a good way to go about finding acceptable rentals. A much better way is to look for DESPERATE sellers. Desperate sellers won’t be asking RETAIL for their property, they will do WHATEVER IT TAKES to end the pain! Some examples of DESPERATE sellers are amateur landlords who are losing money and have had several “tenants from hell”; estate sales; banks with too many REOs in their portfolio at the end of a quarter/year; people with two houses (one more than they can afford); etc.
Trying to turn a retail deal into a rental is very difficult and will very infrequently result in a deal. Finding DESPERATE sellers is a much more sure path to finding good rentals.
Mike
Furnishdowner,
So furnished props are with washer/dryer? Or the entire house furnished with furniture?
I’ve never thought of that before when looking at possible rental properties.
Vittorio31,
Yes, fully-furnished means all the appliances, furniture, dishes, linens, everything. we advertise: “All You Need To Bring Is Your Toothbrush!”
Property Manager Mike is right in that great deals can be had from desperate owners. When landlords burn out on bad tenants, they really burn out. If you see a half-vacant trashy property in a good area that may be a landlord-burnout. They may be real happy to get your call! You can run down ownership at the County Tax assessor’s office.
Good luck on your next deal.
Furnishedowner
Are we finding a lot of deals from landlord’s at this price? I would assume a landlord would know more than anybody that they are getting gipped on this deal. Are many huge price cutdowns on educated real estate people?
Furnish,
how much more does it cost to furnish the rental place?
And do you charge more of a deposit?
It costs about $2,000 minimally to furnish a place. We buy good wood used furniture and spend the most money on TV’s and mattresses. But we have put in a lot of used ones too.
We charge either $400 or $500 for a deposit. Or we just hold their credit card number. We have found our furnished tenants do not trash or steal. And we have never yet had an eviction. These are the same kind of people who stay in a nice hotel.
Furnishedowner