Wait or Rent Property for Cheap?

[Tiana Lazard]

I bought a house in 2022. It's 10 mins away from LSU so I've been house hacking to college students. But now I'm thinking of renting the whole house and getting a cheap apartment to save even more money. Should I?

I found a couple that wants to rent the 2b2b home for $1,500 plus $50 a month for two dogs. But that will only give me $150 cash flow towards my new rental. I would rather wait and find someone to rent for $1,700 instead. Would it be wrong to wait? What would I tell them? That the rent increased? Like how do I do that?

At $1,700 a month, I would profit $300 which would go towards my new rent which is $475 a month.

[Patrick Roberts]

What is the $1,700/month based on, and which neighborhood is this? $1,500-$1,600 is about the going rate for a 2/2 in most average areas of BR, but I can see where some neighborhoods would get more.

Another thing to think about - if the property is sitting vacant right now and you have ready and willing (and qualified) tenants, then the opportunity cost of waiting an extra month or two is $1,550/month. If it takes you two months two find a tenant willing to pay $1,700, then you'll still basically break even in the long run - the net to you is the same. 

If you think you can find a higher quality tenant, then that is a different conversation entirely. 

As far as what to tell them, you simply say that you're listing it for $1,700/month and are not willing to lower the rate. If you're advertising at $1,500/month, then that's a different story.