Real Estate Investor · Leander, TX · Member since 2013 · 3 posts · 0 votes
12y
We are currently getting $900 and $975/month for our 2/2 and 3/2 duplex. It is an older property, and needs to be updated soon. We purchased way back in 1999 as an owner-occupant, for $126,000. Our cash flow is typically $795/month. If only we were able to buy more properties back then!
Investor · Chicago, IL · Member since 2013 · 227 posts · 31 votes
12y
My highest rent is 1400 for a 3 br multi level apartment.
Features new hardwoodfloors and SS appliances.
I spent alot (probably more than I should have) on updates to common areas such as laundry room to make overall house more confortable for my tenants so I feel that charging on the higher end for rent is justified. Not to mention my multi feels more like living in a town house than a large multi plex.
On the flip side, because I'm charging higher rents, tenants seem to be more demanding and require more attention. Which I don't mind right now, but I forsee it spiraling out of control if I don't start to train my tenants better on processes.
Developer · Decatur, GA · Member since 2011 · 1k+ posts · 1k+ votes
12y
I have a 1925 4BR/1BA bungalow in the heart of Decatur, Georgia. It's a hot neighborhood with great schools you can walk to. There's a funky carriage house in the back with an inherited tenant on his way out. Main house brings $2300/mo and the carriage house is currently at $500 heading to $800 - 900.
For cash flow, it's not a great house...yet. It was a foreclosure rented out for several years so needless to say, upkeep/workmanship was low.
Upfront maintenance is expensive. Total paint job, new granite counters, appliances, renovated bathroom, etc. I will need to replace the roof at some point as well.
Vacancy will be very low. The primary appeal is access to the school system. Until the kids graduate from high school, the tenant will likely remain for 5 - 7 yrs if I do my job well as landlord.
I paid $355k this Spring. Today, a comparable house for would go for $450k - $475k. It should continue to appreciate ahead of Atlanta.
I would not want 10 of these, but 1 - 2 out of 10 seems like a good part of a 'portfolio'.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
12y
3 /1.5 bath beach view in RI for $1320 / month academic year and $1200/ wk summer when we rent it. It was a wreck when we bought it with buckets in the fireplace because the roof was leaking so bad. In summer it has a mid-70s cottage look/ lots of windows and in winter a just--21 college student decor. Dated but location wise great. We think it is a good investment although value-wise the RI market dropped some since purchase. I would say though that some properties you can only buy when you can buy them. There had not been a house for sale in this location in 10 years when we bought it and it is making money. @Jon Klaus I will turn the question back to you. What is your highest rent ?
Houston, TX · Member since 2011 · 673 posts · 360 votes
12y
I have a 2300 SF house in The Woodlands that was my first home that rents for $2050 and cash flows awesome, but it was a foreclosure I purchased it in 2010 and have a lot of equity in it. Plan is to hold it for another year or 2, take advantage of the appreciation from the market and Exxon moving in and then sell and buy a few more rental properties with the equity.
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
12y
Currently, I have a 4/2 mobile home with a 2/1 permanent addition (6/3), rented for $1400. It's on 1.5 acres and my tenant is a large extended family. I bought it in 2010 at the HUD auction for 23K and put 32K into it--it needed a lot.
It's been a good rental, but I'd sell it now for 75K since I moved farther away and and am consolidating my rentals.
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
12y
The last couple of years I rented out my former personal home for $2800-3000/mo until I sold it earlier this year. It wasn't a great rental, but it was a good fit for my tenants who had horses and dogs--we had facilities for them.
On the commercial front, we're getting $8300/mo for our small office building.
I have a 2300 SF house in The Woodlands that was my first home that rents for $2050 and cash flows awesome, but it was a foreclosure I purchased it in 2010 and have a lot of equity in it. Plan is to hold it for another year or 2, take advantage of the appreciation from the market and Exxon moving in and then sell and buy a few more rental properties with the equity.
Sam, is this home eligible for the home home owner's tax exclusion for capital gain? Have you lived in at least 2 out of the past 5 years?
My highest rent is 1400 for a 3 br multi level apartment.
Features new hardwoodfloors and SS appliances.
On the flip side, because I'm charging higher rents, tenants seem to be more demanding and require more attention. Which I don't mind right now, but I forsee it spiraling out of control if I don't start to train my tenants better on processes.
@Samson Kay How long have you had these tenants? I find that some new tenants are demanding, but then it settles down in a few months. If they stay high maintenance, you can bump up rent at renwall time.
Sun Prairie, WI · Member since 2013 · 150 posts · 69 votes
12y
I have a 1400SF 3/2 sfh that rents for $1,700. I bought it at foreclosure for 150,600 in May of this year. It is about 12 years old. We had to replace the water softner, water heater and all appliances but otherwise it was in really good condition. Could probably sell it for approximately $200,000, but I have great renters in there that want to stay for an extended period of time. The market is starting to recover here so I anticipate the value continuing to increase.
Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes
12y
My highest is $2,000 but that's my former primary residence that I'm upside down on and wasn't able to sell when I moved. It's been rented to the same tenants for 2 1/2 years and I'm going to attempt to sell it again next summer when they move out. My highest for a pure rental is $1,250. Before I got real serious about this I was looking to buy a few rentals on the side and was focusing on higher appreciation areas and now that I'm trying to transition to living off my rentals I've switched to buying purely for cash flow. Instead of buying a $75k house in a pretty good neighborhood that rents for $1-1.1k I can buy 3 $25k houses in low income neighborhoods (with little appreciation) that will rent for $800/month each.
Highest rent would be $ 850 for a duplex that I bought for 13K in 2010. Only had to put about 2k into each unit.
Still have the first tenants on both sides and I'm still happy with it
Wow, the 6% rule ; ) in action. Where is this @Michaela G. ?
They're all in the Tampa Bay area. With low income areas I like to be more hands on (even if most of the hands on work is from my full time maintenance guy who handles some of the property management duties) and wouldn't buy them in areas I didn't know. The $25k/$800 numbers are just an average return I shoot for in those areas but I can often do better. Here are some I've bought this year to show it can be done.
4 Unit 4 x 1/1 for $28k plus $18k rehab with gross rents of $2,100
2/1 SFH for $14k plus $4k rehab rents for $700
Duplex 2 x 1/1 for $13k plus $10k rehab with gross rents of $1,100
3/2 SFH for $16k plus $14k rehab rents for $950 (better area)
4/2 SFH for $20k plus $5k rehab rents for $950
My next rehab project is a 2/1 SFH I just closed on for $12k and I anticipate about $6-7k in rehab before it'll rent for $725.
I often focus on dealing with properties that need larger rehabs or properties that have issues with the city (permits, code liens, zoning issues, etc) because I'm experienced at resolving those when the out of state investors and amateurs can't handle it.