Was looking over a deal with the following:
4bed/2bath
1300 sq ft / 10,000 sq ft lot
22,500 pur price
2-3k repairs
Charlotte, NC
Sold 07 for 120k (not that that is very important)
Rent approx. $800/mo
Now I think these numbers look pretty good however my question revolves around the maintenance cost. More specifically landscaping/maintaining about .25 acre. I dont know how much shrubbery and trees are on the lot as I have yet to delve that deep, but wouldnt something like this cost a small fortune to maintain and wipe out any perceived cash flow?
Little help from the veterans on how you estimate this type of expense.
Thanks.
Easy…make the tenants take care of the yard. No expense to you unless the place is vacant. If your numbers are accurate, I would jump on this deal in a heartbeat. About 25k into it for $800/mo is really good.
How do the laws of certain states apply to this type of situation?
Dont some states REQUIRE the landlord to maintain the property? Or, whatever is agreed upon in the lease agreement between the 2 parties supersedes?
Forgive me as I am a newb.
Almost all of my places here are about 1/4 acre lots. All my tenants take care of their own lot. One has half an acre and the tenant takes care of it themselves too.
There is one exception to that. My duplex has probably half an acre, and it’s a very odd lot. I cut grass there myself, but it’s close enough to my house I drive the rider up there. I kind of enjoy it. I could probably make the tenant do it, but I think I’d have a hard time renting the side with all the property. It would take hours with a push mower and it’s hilly.
That’s my only one that I do maintenance on. I mak good money down there and don’t resent it at all.
I’ve never heard of any place where it’s required for the LL to do the yard work. Put it in the lease to make them responsible for it. For a small multi-family building, you could keep one tenant’s rent lower if they take care of the yard.