I was wondering what the average time it takes to put a L/O tenant into a single family home (3 yr old 3/2/2 in Round Rock by Elementary school)? I have never done L/O’s - I usually look for fixers to resell - so before jumping in, I would like to get a better feel on what to expect. Any comments?
Hard to say. Two years ago I could fill ANY house in any location within a week. Now, in our current market, sometimes it will sell before I actually take possession, sometimes I hold it for a few months.
The longest I have held a house to date has been 6 months but I always hold out for the “right” person.
You should make a part of your due dilligence learning about the area you are considering buying in. How many homes for sale/rent? How much are they asking a month? How long is it taking to fill them? Seeing lots of for sale or for rent signs in the area should be a red flag for you.
My advice to you would be to figure 6 months in your holding costs. If you fill it sooner, great. If not, you have already factored it in so no big deal.
I would also be trying to get the sellers to make the next 3 months of payments while you try to find a t/byer. You may not get the full 3 months, but even if they only agree to one month that’s one less payment you have to make.
The house that I had in mind is a HUD foreclosure, so unfortunately I can’t ask for any payments to be made for me. They aren’t really good at negotiating either - I suppose the government is never motivated!
I’m thinking I will let this one go - unless it drops in price next week…we shall see.