Comments on: Real Estate Investing In A Rental Village

By: Corretta Smith

Corretta Smith — Wed, 01 Jul 2009 17:10:37 +0000

I guess too many people where dipping their hand into the Real Estate pot; now everyone is sucked in…damn.

By: Melfort Saskatchewan

Melfort Saskatchewan — Mon, 26 May 2008 02:33:04 +0000

Saskatchewan real estate has a lot of potential. The province has some of the richest deposites of uranium, oil, and diamonds in the world.

By: Mike Farmer

Mike Farmer — Wed, 14 May 2008 04:10:00 +0000

Raleigh is a great area to be investing in — I only see growth for the future. I lived in Rocky Mount for 4and a half years and went to Raleigh on business about once a week — it grew bigger, it seemed, every week — the whole Reasearch triangle area.

By: scott snyder

scott snyder — Wed, 14 May 2008 01:43:45 +0000

Beachbum said it, it’s about the numbers. In this case, with tight management policies, you are in fact buying into something that has greater intrinsic value than your typical duplex, triplex or even single family where you have no control over the tenant policing or screening of your neighbors with many different Property Managers.

We have developed and/or listed hundreds of single family and duplex properties such as this across 4 developments and half a dozen phases and without exception appreciation and returns have been higher and ultimate returns better, simply because of higher rents and lower vacancies. We have 2 more developments coming on line this month in the Greater Raleigh, NC area based on this very concept.

By: Mike Farmer

Mike Farmer — Tue, 13 May 2008 22:08:36 +0000

Yes, I agree about policies — the owner of the rental village in the neighboring town impressed me with his tight policies and systems he had — he said he was able to enforce them because of the demand he had — being able to pick and choose (within legal limits, of course) is what attracted me to the idea.

So if the up front costs of building a better community is higher, the vacancy rate is almost nil, the damge to the property is minimal, and the ability to get top rent is high — and evictions are low.

By: Beachbum

Beachbum — Tue, 13 May 2008 21:51:12 +0000

It’s all about the numbers. If you can make it work financially, the concept is certainly workable. It is really not much different than an apartment community, except they are all single family homes. You need to provide amenities and create “community” for tenant retention, but, in theory, the economies of scale should help to make it profitable.

I was involved with a redevelopment of a military housing area that consisted of 2100 homes, of which approximately 1/3 were single family, 1/3 were duplex, and 1/3 were a max of 8 units. The singles and duplexes were very popular, especially those with fenced yards. Of course, this brings up typical “yard” related issues, such as accumulation of “stuff”, etc. so your community policies need to be reasonable but absolutely enforced or you will see quality circle down. Security and general groundskeeping are just two of many broad areas of importance for any sizeable development.