Real Estate Agent · Birmingham · Member since 2020 · 26 posts · 10 votes
Hey BP a family friend has offered to sell me his rental house. It rents for $600 and he is asking $60,000, so not bad. But I think the house is worth closer to $50,000. I do really like the house and would love to get it because I think it would cash flow. So I have been trying to think of ways to make the deal better for me without going down on the price. The house comes with a pretty big backyard so I had a thought about putting a Mobile home in the backyard to add more value and cash flow. Does anyone have any experience with this or does anyone have another idea to make the deal better. Thank you in advance everyone
I wouldn't say it's necessarily common, but I do know several landlords that do this. Basically they will say rent is this amount with no appliances. If you want a fridge that's an extra $50 (or whatever amount) per month and fridge/washer/dryer will be an extra $x/month. Part of this comes with the responsibility of appliance maintenance, so that's something to keep in mind.
Some tenants may not be able to come up with the up-front cost to get all of their own appliances but they are able to pay a small amount extra each month.
Rental Property Investor · Edmond, OK · Member since 2017 · 1k+ posts · 1k+ votes
6y
If you put a mobile home in the backyard, would that make the actual house less desirable? I don't have personal experience with this, but if I were looking to rent a home I would be less inclined to rent it if I was sharing my yard/space with another tenant.
Could you do any value add options to the home to bring the rent up? (Updates, including or leasing out a washer/dryer/fridge to the tenant, etc).
Real Estate Agent · Birmingham · Member since 2020 · 26 posts · 10 votes
6y
@Cassi Justiz thank you for your reply. I was a little concerned with this. The house is a 3/1 so I thought I might be able to add another bedroom and make it a 3/2 and that would probably get the price closer to 60k. The house has been well updated other then that.
Rental Property Investor · Mesa, AZ · Member since 2019 · 138 posts · 144 votes
6y
@Cassi Justiz is that a common practice, renting out appliances? Would you normally rent the house without a washer and dryer at a certain price and then give the option of delivering and installing them for $20 a month, as an example?
I wouldn't say it's necessarily common, but I do know several landlords that do this. Basically they will say rent is this amount with no appliances. If you want a fridge that's an extra $50 (or whatever amount) per month and fridge/washer/dryer will be an extra $x/month. Part of this comes with the responsibility of appliance maintenance, so that's something to keep in mind.
Some tenants may not be able to come up with the up-front cost to get all of their own appliances but they are able to pay a small amount extra each month.
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
6y
@Adam Snow If you want to add a mobile home, you'll probably need to check with your local zoning department to see what you can and can't do. If you can, you may need a moving permit for the move. Also, talk to a few contractors to get bids on the move and hook ups (i.e. plumbing, electrical, etc). Hope that helps!