Rental House Questions ???

Rehabbing, Fix and Flip, Rental Properties
1

What type(s) of houses make good rentals ???

What is the best way to accumulate rental houses when you start with no properties ???

What opinions do you people have on the house rental business ???

Thanks for the input REI people !!!

2

<<What type(s) of houses make good rentals>>

In my experience, solid 3/2 make the best rentals. 3/1 are also good in this area and 2/1 give pretty good rental history.

In this area, ramblers are probably the most popular. Look for properties with decent room and floorplans.

<<What is the best way to accumulate rental houses when you start with no properties>>

Buy them!

<<What opinions do you people have on the house rental business >>

How do you mean? From the tenants’ point of view or the landlords’?

Keith

3

  1. What type(s) of houses make good rentals? “Bread and butter” 3/2/2 in what is perceived as a “good” area.

  2. What is the best way to accumulate rental houses when you start with no properties? Do an owner occupant in a single or multifamily home. Buy at a good price and don’t buy on emotion. Live there for 6 months and then move.

3.What opinions do you people have on the house rental business? Seems like a necessary evil for beginners who don’t feel comfortable borrowing for a flip. I’d rather sell on a lease option, but it’s changed so much in Texas that I’m rethinking the strategy.

Lending money is where the big players make the big profits. They’re also doing TICs.

4

Dee - what’s a TIC?

–lyngarc

5

Hello everyone! What’s the best way of formulating a cash-flow analysis for renting single-family homes before purchasing?

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INCOME minus OUTGO equals CASHFLOW.

Take your rental (and any miscellaneous) income from the property and subtract from it ALL of the expenses:

Principal and Interest from the mortage
Taxes
Insurance
Maintenance
Management
Vacany Rate
Utilities
Etc.

What is left is you cashflow (hopefully, positive cashflow!)…

Don’t let anyone tell you differently:

CASHFLOW IS KING!!!

Keith

7

Thanks for the response Keith. I was told that vacancy rate is 5% of the total holding costs. Is this accurate?

8

Vacancy rate is the length of time (expressed in a percentage of the whole) that it will take to rent or re-rent the property during a given time period – so, it is the amount of time that you can expect the property to be vacant.

I would expect in many areas 5% would be average – that contemplates about 18 days of vacancy a year (365 days X 5% = 18.25 days)…in some areas it is more difficult to find a suitable tenant…here, it takes about 2 days to fill.

Keith

9

Thanks a million Keith!

10

Keith,

Where are you renting? Was it CO? I don’t remember for sure.

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I’m in NW Louisiana (that’s the dry part!)…

Keith

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Hi, new here. Just a few quick questions to do with rental properties…

Carpet - do you replace with the cheapest carpet out there and replace every year or every two years or do you spend more money for something that will last longer, ie, better material with stain gaurd, etc…

Blinds - do you put in the cheap standard aluminum blinds or put in wood blinds for a place that deserves them?

Thanks!

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I put in mid-grade carpet with good pad. I use white vinyl mini-blinds – they are clean, neat and cost me about $4-5 a set.

Keith

14

I purchased commercial carpet for my properties with good padding…buy the cheapest item you can because you will find your self replacing items everytime a tenant moves out