Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
How many of you have tenants paying $600 and under who aren't living at or below the poverty line? Don't take offense. I'm well aware that $600 can rent some nice units and is enough for a mortgage payment in some parts of the country. I know that plenty of tenants are making choices about how to spend their money.
As a landlord you are presumably looking at income versus rent. A tenant making $1800/mo is making three times a $600 rent, a formula many landlords are happy with. A 4 person family making $21600 is pretty much at or below the federal poverty line level.
So how of you have tenants with $600 rents who aren't living below the poverty line?
Rental Property Investor · Douglas County, MO · Member since 2014 · 1k+ posts · 1k+ votes
12y
Originally posted by @Account Closed:
Housing costs are cheaper in the Mid West, but paying 30-50% of your income towards housing doesn't give one that many lifestyle choices. Food, transportation and utilities aren't cheaper. A family making $50K/year and paying a $600 rent has life style choices. Less so for the family living on $21,600.
"Food, transportation and utilities aren't cheaper."
Ah, but they certainly can be!
Unleaded gas in Sacramento is currently $3.80/gal, Springfield MO is $3.23. That spread will get wider in the summer.
PG&E electric rates are currently about 20¢/kWh, Springfield, MO is about 5¢/kWh. Gas is a little harder to compare. PG&E is about $1.30/therm, Springfield MO is $13/month + 12.75¢/therm.
For food I have only anecdotal info. A couple of years ago I bought strawberries in Watsonville, flew home to MO 2 days later and bought strawberries at the grocery store (shipped from Watsonville) for $1/basket less than I paid in CA. I often found the food prices at Walmart in my mother-in-law's city (not far from Sacramento) to be higher than the same food bought at Walmart in MO.
Lower cost of living means much more than just lower housing costs.
Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
12y
Our lowest priced unit was at $600 and we raised it to $660 effective May 1st. Zip code 98663. Duplex 2 bedroom 1 bath with W/D hookups. 3 adults (mom is a retiree $1500/month, daughter works as a caregiver with an outside agency, son works as a long-haul semi truck driver for a trucking company). Redid the bathroom in 2012 and redid the kitchen in 2014. Unit is in good shape. Plan to replace the fence this year and will change windows from aluminum to vinyl within the next 2 years. Long term tenant >13 yrs. Original rent was $475 (move-in special), rent raises $500, $550, $600, $660 over the years. The mom is the primary tenant and her daughter moved in when the economy downturned and the son has been living there since before then but is hardly ever at home since he works on the road. He does have a pet bird that his sister takes care of. Mom and daughter have cars, son has the company's 18 wheeler. Certainly not below poverty line. However, they view themselves as barely scraping by.... poverty mentality?
Memphis, TN · Member since 2013 · 969 posts · 524 votes
12y
@Account Closed
I rent to tenants in the $600 range and my lowest rent on my 1 bedroom units are as low as $325 a month. Most if not all of them are on fixed income SSI or Disability and those that do work are paid minimum wage.
when he stated "Someone making $21,600 in California or NY can be considered poor, but someone making that money in Mid West can have a better lifestyle than on either coast."
The cost of living in Memphis TN is much lower than the cost of living in other places if you make $80k-$100k a year in Memphis it compares to making $150k-$200k in California or New York. I am pretty sure if any one is making minimum wage and renting a home in those areas they are pretty much living below poverty level. I am no expert just my thoughts.
SFR Investor · Stillwater, OK · Member since 2014 · 168 posts · 37 votes
12y
At least half of mine ride the poverty line.
The farther away from the bigger city's in the small towns ,rural areas around here rent is a lot cheaper. Some places it's half of what I would get in OKC or Tulsa
I have three or four who choose to live next door or near family and could buy their own homes but rent.
One spends at least half her income on clothing ,she rents a two bedroom
Needed one bedroom for closet.
Some are renting cheap to save more or pay off debt
All the new impressive toys and sweet vehicles are more important to some.
You said. "My dad has told me stories of his mother stuffing used newspapers in the cracks of the walls in the house to keep the snow from blowing in".
I heard about the same only "The cracks in the wall were big enough to throw the baby through!"
Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes
12y
Rent range $650-750(3br 1 bath) on some properties..Most above poverty line making $2500-3K a month...Most want affordable homes to live a certain lifestyle..Nice cars, clothes, travel,gamble (one pays for private school), etc.....so it varies...I require 3x rent...Better success for tenant and self...
Rental Property Investor · Douglas County, MO · Member since 2014 · 1k+ posts · 1k+ votes
12y
Originally posted by @Account Closed:
Housing costs are cheaper in the Mid West, but paying 30-50% of your income towards housing doesn't give one that many lifestyle choices. Food, transportation and utilities aren't cheaper. A family making $50K/year and paying a $600 rent has life style choices. Less so for the family living on $21,600.
"Food, transportation and utilities aren't cheaper."
Ah, but they certainly can be!
Unleaded gas in Sacramento is currently $3.80/gal, Springfield MO is $3.23. That spread will get wider in the summer.
PG&E electric rates are currently about 20¢/kWh, Springfield, MO is about 5¢/kWh. Gas is a little harder to compare. PG&E is about $1.30/therm, Springfield MO is $13/month + 12.75¢/therm.
For food I have only anecdotal info. A couple of years ago I bought strawberries in Watsonville, flew home to MO 2 days later and bought strawberries at the grocery store (shipped from Watsonville) for $1/basket less than I paid in CA. I often found the food prices at Walmart in my mother-in-law's city (not far from Sacramento) to be higher than the same food bought at Walmart in MO.
Lower cost of living means much more than just lower housing costs.
I'm looking for a place to live at around the price of $600. A Month I can't even afford to pay for security rent just $600 per month I'm on Social Security low Social Security on low income $600 a month until I can afford if anybody out there in place for 600 a month I appreciate it thank you
Has to be in Dover Delaware area it can be in Dover Camden Woodside Harrington Milford Caswell and Smyrna area or Townsend I can't go no father my doctors are in this area