Tempted to put an offer on a SFH tomorrow that is priced well, in good shape and should cashflow well.
My one concern is that there are a lot of homes that are already rentals in the neighborhood. I'm guessing 30% of the neighborhood is rentals. Any concerns buying into an area like this? I posted an ad on Craigslist with basic home details and general location. I set rent at what I thought was a little high at $1200 just to see how many responses I'd get. I was hoping for 1. I got 4 in about 18 hours.
Having other rentals doesn't necessarily mean that's a bad thing. It all depends on the renters I suppose. If the landlord didn't do his due diligence you could be next door to a nightmare tenant. But honestly disputes between neighbors could easily be resolved by the police. Sometimes renters take pretty good care of properties as well.
I would do a little more market research on what the rent is for the area. Also check the condition if they have pictures, whether they have newer updated, bathrooms, kitchens, etc. Those all will affect the prices. I wouldn't just throw a random number out there. Base it on some data. You could be pricing it several hundred under market rate as well. But remember just because 8 people say they are interested doesn't mean 8 will show up. More likely 2 or 3 are left after screening them for credit, evictions, etc.
Do checkout the ultimate guide to screening tenants. Be sure you pre screen before showing the property, otherwise you will be wasting your time on people that won't qualify.
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