Rental demand in South Bend and Elkhart, Indiana

Can anyone give us some insight to the state of affairs in South Bend and Elkhart, INDIANA? We have several rentals that we bought in May and we are still trying to rent them out. So far, we've only been able to rent one of them out. What's happening there as far as rental demand goes? We also have several in Fort Wayne INDIANA and they rent out within a week!!! It's so different.

Is this caused by the property manager or is it the economy in the area?

Thanks
Ruth

Edited: 06/26/2010 at 09:55AM

Tim W.

Real Estate Investor · Indiana, Indiana

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Icon_minipost Oct 02 '09, 09:21 AM

Probably should go in the rental forum but drop your rent $75 on each house. Do it now to have a hope of getting them occupied for Nov. 1st.

Edited: 06/26/2010 at 09:55AM by Tim W.

R Davidson

Real Estate Investor · Auckland, Select a State

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Icon_minipost Oct 02 '09, 09:53 AM

Thank you for your suggestion, Tim. In fact my property manager has dropped the rent by $100 per month which I thought was too high. I'll see if she drops it by $75 to create some interests.

Edited: 06/26/2010 at 09:55AM

Chris L.

Rehabber · Fort Wayne, Indiana

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Icon_minipost Nov 20 '09, 12:41 AM

Ruth,
Elkhart has been hit hard by the RV industry wide downturn.
A friend of mine that owns restaurants there said that they are starting to hire again in the RV industry.
I don't really have details but if that bears out you should eventually see a pick up in demand for your rental properties.
Good luck

Edited: 06/26/2010 at 10:35AM

R Davidson

Real Estate Investor · Auckland, Select a State

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Icon_minipost Nov 20 '09, 02:01 AM

Appreciate everyone's feedback as to what's happening in Elkhart and South Bend in general. I have 3 properties yet to rent in that area.

How about selling them off, will there be any demand for them?

Edited: 06/26/2010 at 10:35AM

Patricia S.

· Michigan

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Icon_minipost Nov 20 '09, 03:07 AM

I have a rehabber in Gary, IN - the capitol of Rental properties. Are you interested in funding him to buy and rehab? He has a crew and property management co who screens the renters meticulously.
Patti [EMAIL REMOVED]

Edited: 11/22/2009 at 03:32PM by Moderator : email in signature, please

Tim W.

Real Estate Investor · Indiana, Indiana

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Icon_minipost Nov 20 '09, 03:09 AM

Originally posted by R Davidson

Appreciate everyone's feedback as to what's happening in Elkhart and South Bend in general. I have 3 properties yet to rent in that area.

How about selling them off, will there be any demand for them?

What neighborhoods are they in? Have you tried lease/optioning them? Don't try to lock people into a big option fee - you won't get it - and you'll get it "rented". Eviction on a lease option is just as easy as a regular eviction here so long as you don't to a land contract. Lots of people will tell you to do a land contract because you can get the property reassessed as a primary residence but the temporary savings of $1,000.00 will evaporate as soon as you have to do a foreclosure as opposed to an eviction.

Edited: 06/26/2010 at 10:36AM

R Davidson

Real Estate Investor · Auckland, Select a State

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Icon_minipost Nov 30 '09, 03:26 PM

I learned from someone that I can also do mortgage notes on any of the properties once they are rented out. I am not familiar with this. Compared with lease option, what are the risks with selling notes?

Thanks
Ruth

Edited: 06/26/2010 at 10:41AM

Tim W.

Real Estate Investor · Indiana, Indiana

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Icon_minipost Nov 30 '09, 10:38 PM

Funny you should ask.

http://www.biggerpockets.com/forums/222/topics/33810-creating-saleable-notes-

Edited: 06/26/2010 at 10:41AM by Administrator : Activated link

R Davidson

Real Estate Investor · Auckland, Select a State

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Icon_minipost Dec 15 '09, 12:49 PM

I still have 2 South Bend and 1 Elkhart properties to rent out. It's starting to annoy me as I don't know what to do with them....I've dropped the rent, offered 2nd month free rent, and they are fully done up inside. Don't know what else I can do except to sell them, but no takers!!! Do I need to pay capital gains tax if I sell them at cost and move on to getting better quality homes?

Edited: 06/26/2010 at 10:51AM

P NW

· OR

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Icon_minipost Dec 16 '09, 02:05 AM

You won't owe capital gains if you sell them for cost, but you will have to pay taxes on recaptured depriciation.

If you are going to buy something different, do a 1031 and then you won't pay taxes on any of it.

Edited: 06/26/2010 at 10:52AM

R Davidson

Real Estate Investor · Auckland, Select a State

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Icon_minipost Dec 16 '09, 02:30 AM

Thanks very much. Yes, that's what I can do to cut my losses and replace it with something else more worthy.

Ruth

Edited: 06/26/2010 at 10:52AM