Rental Property Investor · New York, NY · Member since 2011 · 956 posts · 510 votes
Found a gorgeous brick ranch with two car garage 10 minutes away for $259 k. Asking price is good.
problem is - taxes are 7000 a year
and it would rent for $2000 a month which means I’d make 200 profit. If vacant I’d need to cover $1800 A month loan payment.
Most of my other rentals are in bad areas and I make 600 a month from them but they are certainly not beautiful. Trying not to let my emotions get the best of me and to follow the money not the beauty . anyone ever had to make a choice like this before? how’d it go?
Real Estate Agent · Sandwich, MA · Member since 2014 · 974 posts · 636 votes
5y
@Marci Stein Do you think the property that is pretty is going to appreciate more than the others? If it is in a more desirable area, the pretty house may generate better tenants with lower headaches, too.
Rental Property Investor · New York, NY · Member since 2011 · 956 posts · 510 votes
5y
That is a good point however it’s hard to imagine any tenant who can pay such a high rent without being able to buy some thing themselves. So I’m not sure if the tenant pool will be any different there might just be more of them to make the rent
Rental Property Investor · Bloomington, MN · Member since 2019 · 404 posts · 542 votes
5y
@Marci Stein Keep in mind that there are lots of reasons for people to rent instead of buy. Example: work took my wife and I to another state for a 2 year assignment. We weren’t going to buy since we didn’t know the area and knew it was only for 2 years. Both with solid jobs, Chemical Engineer and Bank Analyst. There are lots of jobs with 2-5 year assignments at a specific location before moving to another location. Common in engineering jobs.
Rental Property Investor · Spokane, WA · Member since 2018 · 64 posts · 59 votes
5y
I too am attracted to the nice ones. I did buy a couple nicer ones but I make my cash on the C Grade previously owned by a slumlord (actually a series of slumlords!) properties. I make in fact a lot more than I make on my 2 pretty properties. I am trying to upgrade my C Class units to B Class units so I spend a lot of time on these compared to my nice units. All of my management, tenant issues, and repair issues are generated from the C Class units as well. More work but a lot better ROI as well. In my market, I can rent as fast as I can turn it over. My C units need full remodels. I usually have to take them down for a month and work like a dog to get it done. My A units are back on the market with just a minor refresh and I don't have to take them down for a month. I like my A Units but I like the cash generation on my C units even more!