Who's pay's $1,300 for rent?

General Landlording & Rental Properties
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Who's pay's $1,300 for rent?

Irwin Haddox
Delaware City, DE · Member since 2016 · 25 posts · 13 votes

All,

I often see on here landlords that charge around $1,300 for rent but I personally don't know anyone who pays such high rent. If you have $1,300 rent why not buy? I know people usually say that they don't want to settle in the area for long so they don't buy but i'm sure if the deal was good enough then they could sell with instant equity. Also I hear people don't have good credit so they can't buy, but some landlords screen out bad credit tenants. Obviously if they live in NYC I understand but 1,300 buys a lot of house in other areas. So what I want to know is who is paying all this rent after all?

-Irwin

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Michaela G.
Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
9y

Location, location, location

When I lived in California I paid $ 2400 and that was a bargain, because I was 30 miles south of L.A. And no, I couldn't have bought with that money.  Same in the SF Bay area. 

Maybe it's a lot for rent in Delaware City, but it might not be somewhere else.

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  • Michelle Stewart
    Real Estate Agent · Plano, TX · Member since 2017 · 10 posts · 3 votes
    9y

    My 2 tenats pay $2500 2/2 1400 sq ft condo and $3700 4/2.5 2300 sq ft SFR in San Diego

    0Reply
  • Lee RipmaPro Member
    Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
    9y
    Are you kidding? 1300 is so cheap! I'd kill to pay 1300 a month in rent!
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  • Curtis BidwellPro Member
    Rental Property Investor · Olympia, WA · Member since 2014 · 781 posts · 744 votes
    9y

    here's a partial rent roll for some of my homes with rent, tyoe, size, etc: these are in Olympia and Puyallup, WA. 

    $1120 - 2 bd, 1 bath duplex 800sf: laborer 

    $1175 - 3 bd, 2.5 bath duplex 1350sf: state employee

    $1595 - 3 bd, 2.5 bath SFR 1900sf: state employee

    $1750 - 3 bd, 2.5 bath SFR 1875sf: students

    $1485 - 3 bd, 2.5 bath SFR 1600sf: single mom alimony

    $1260 - 3 bd, 2 bath townhome 1300sf: military

    $1850 - 4 bed, 2 bath SFR 2000sf: self employed music industry

    $2500 - 4 bd, 2.5 bath SFR 2500sf: commercial construction project mngr (renting while building his home)

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    1Reply
  • Anthony Nguyen
    Los Angeles, CA · Member since 2016 · 147 posts · 27 votes
    9y
    I own what I rent out, and rent where I live. Uncle GC taught me that. And we pay $2300/mo for a 1br 700sf apartment in the SFV of Los Angeles.
    1Reply
  • Dominic Allen
    Henderson, NV · Member since 2017 · 7 posts · 5 votes
    9y

    You should see what some people are paying just to live in some of the high rise condos here in Vegas. Not only are they typically paying high rents for not a lot of space, they're also paying absolutely ludicrous HOA fees every month for the privilege of living in the sky I guess, which is like paying a second mortgage from the prices I've seen. (Typically about $800 or more depending on location and floor in the nicer properties) So even if you pay for your condo in full and own it, you still technically have another high cost expenditure every month regardless. Just the same though, people love them and pay those astronomical fees to live there. That's why I've been seeing if some of the companies that own these places are publicly traded as REIT's.

    0Reply
  • Brandon Ingegneri
    Rental Property Investor · Providence, RI · Member since 2015 · 1k+ posts · 594 votes
    9y
    Rent is relative to a particular market just like home prices. They vary according to location. I have rents as low as $750 and as high as $2500, all within a 15-20 mile radius. Know your market, including the rents.
    0Reply
  • Tanya Delahoz
    Residential Real Estate Broker · Breckenridge, CO · Member since 2017 · 19 posts · 10 votes
    9y

    I have lived in Breckenridge, CO for the last 17 years and manage 20-25 rental properties, as well as being a real estate broker. $1300 a month is the rate for a studio apartment. A 1BR will be closer to $1500-$1600 and 2BR's $2200-$2500. Back in 2005, rents wents for a 2BR were closer to $1300/month. 

    0Reply
  • Matt Geerts
    Investor · St. Thomas, Ontario · Member since 2015 · 692 posts · 312 votes
    9y
    Originally posted by @Rhonda Royer:

    I would say my tenants have rented mainly to remain "fluid." Their desire to rent temporarily has been for several different reasons including waiting on a suitable home to purchase, until their children finish school in a certain neighborhood, they don't want the bother of repairs, or as a separated parent to stay in the same vicinity as the ex for the kids' sake before setting roots in a more desirable area.  Our market in Ontario is no where near where many of you rent.  A good home can be rented for $800 plus, upwards to $2000/month for waterfront.  I can't imagine paying more but I guess it's all relative to employment in different regions. 

     Rhonda, keep in mind that your numbers don't represent Ontario, they represent Sarnia. I'm renting out a B townhouse (very nicely finished) for $1200 in London and that is chump change compared to what the same place would fetch in Toronto. I knew a girl ten years ago renting a 2-bed apartment in a downtown London building for $1600/mo.

    My renter made it very clear to me why they rent. It isn't income because she makes as much as me. When I screened her she had enough in the bank to put a deposit on the house. She just doesn't want to own a house. She pointed that out one day when I was soldering new taps on the laundry water supply due to a leak. She likes that she can just call and the problem goes away.  She's also 100% liquid - two months notice and move (if you're reading this, please don't, you're the best tenants ever). 

    2Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    9y
    Originally posted by @Mark S.:

    I'm quite shocked at all the investors on here that are renting. I'm not saying it's good or bad, and I understand different people's reasons for each, but I guess just not something I expected to see on a REI forum. Interesting.

    $1,300/month here gets you a brand new 3/2/2 1,600 sq ft house, trash and landscaping included.

     While I was living/renting in the SF Bay area, the market crashed. I was buying houses in Atlanta for 10K, put in less than 10 for rehab and got $ 650 rent. 

    So, for 100K I could have put down a downpayment on a small starter home and paid 3-4k/month piti (nto really, because I was self-employed and wouldn't have been able to get a mortgage)....or I could buy and renovate 5 3/2 in Atlanta and get $ 3250 rent and rent a million $ house for $ 2495.

    3Reply
  • Jessica Zolotorofe
    Attorney · NJ · Member since 2016 · 1k+ posts · 794 votes
    9y
    Rents here are about $2800-$3800 for a small 1bedroom under 700sf. Like others said, it depends on income levels in your area and sales prices. What I would do if I could find a safe clean place to rent for $1300!!
    0Reply
  • Aaron Z.
    Investor · Virginia Beach, VA · Member since 2015 · 83 posts · 34 votes
    9y
    Irwin Haddox In short, people who need to move frequently or need to live in expensive cities or those who don't want to commute or those with families but travel a lot for work. Over the past 15 years I've charged my tenants anywhere from 1450 to 2250 for SFR's in Chesapeake and Norfolk Virginia. During that same time frame I've paid $1950/mo for a small 2 bedroom apartment from which I was a 10 min walk from: My work, the Pacific Ocean, a community college, and a small downtown area. Never dealing with traffic or other drivers was a real treat! The most expensive was paying over $3000/mo for a 1400sf house!
    0Reply
  • James Wilder
    Winnetka, CA · Member since 2017 · 4 posts · 0 votes
    9y
    I live in LA. I can't find a decent place in a decent area for less than $1700 (for a one bed on bath). Usually 600 sq ft. All the houses are at least .5M . I can't afford that right now.
    0Reply
  • Irwin Haddox
    OP
    Delaware City, DE · Member since 2016 · 25 posts · 13 votes
    9y
    Originally posted by @David Krulac:

    @Irwin Haddox

    For a typical 3 br rents in Pa. are around $1,250, some more, some less. 4brs rents are higher and we've rented 4 br SFH for as much as $2,050. One tenant we have in a high priced rental has 2 out of state properties that were former personal residences that they can't sell. Due to already having 2 mortgages other places they can't get a 3rd mortgage and buy at this time.

    You can find out the Fair Market Rent for your area or any area in the country by going to a HUD website, www.HUDuser.org

    That is the average rent figures compiled by survey of actual rents, so you can see what average rents are.

    For New Castle County:

    eff     $845

    1br    $1003

    2br    $1211

    3br    $1515

    4 br   $1686

    This tool is awesome assuming I can get a property management company to confirm the round about estimates provided on huduser.org this is very valuable. With 1,300 top line I can borrow money form a lender and still start making 6% CAP rate today like RIGHT NOW!

    0Reply
  • Ben Snyder
    Real Estate Agent · Galena, OH · Member since 2016 · 3 posts · 2 votes
    9y

    Someone with a good enough income to pay the rent, but enough negatives in their credit to prevent them for qualifying for a mortgage. Maybe they got laid off, struggled to find a new job in their field, lost a house in foreclosure - rent may be the only option they have for living space.

    Also, as others have mentioned- location. In my area a 3BR, 2.5 bath "townhome" apartments with ~1100sq ft rent for around $1k/mo. There's nothing nice about them, but they are functional units for families to live in. 

    1Reply
  • Glenn R.
    Cornelius, NC · Member since 2016 · 104 posts · 51 votes
    9y

    This thread has me thinking about high-end rentals.  ( I'll start a new thread instead of hijacking this one. )

    0Reply
  • Karie Blalock
    Nashville, TN · Member since 2016 · 4 posts · 1 vote
    9y

    I live in Nashville, TN within 10 min of the airport and 15-30 min of Anywhere in Nashville. I have a large 2bd/2-1/2ba condo I will be renting out for $1,300. I would be leaving all appliances, including washer and drier, rent would also cover water, weekly trash service, pest control, unlimited wifi and probably some furniture. Would that be worth it in the eyes of some of the 1,200 moving to the area Every month? I think so. In my same community there are two other, slightly smaller condos asking for $1,275 and $1,295 and only one even includes the washer and drier.

    0Reply
  • Joel Heard
    Fort Collins, CO · Member since 2017 · 4 posts · 2 votes
    9y

    I would echo what many people have said on here - a down payment, even for people with a great credit score, can be a very challenging thing to come up with. My wife and I both have a steady income, and we hope to purchase within the next year, but it is taking careful planning and budgeting for us to reach a down payment that is large enough for where we live (Fort Collins, CO - median house value: $343,200 [http://www.zillow.com/fort-collins-co/home-values/]). 

    0Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    9y
    My upstairs tenants pay close to that and they are roommates. I paid $1100 last year for a one bedroom luxury apartment. Lots of people pay that in Minneapolis.
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    0Reply
  • James Orr
    Real Estate Agent · Fort Collins, CO · Member since 2010 · 350 posts · 222 votes
    9y

    @Joel Heard In Fort Collins, you can buy a home with 1% down (with some income restrictions for your first home) and 3% down with less restrictions. Then, of course, there's 3.5% FHA. If you're military, you can do VA loans here with 0% down and if you're willing to live in Windsor or outside city limits there is USDA which is also 0% down.

    0Reply
  • Luc Boiron
    Specialist · Toronto, Ontario · Member since 2016 · 564 posts · 425 votes
    9y

    In my city, $1,300 doesn't get you a bachelor apartment in the core. It would still make sense to rent there, as a 400sqft apartment that rents for $1,400 sells for $300,000+.

    0Reply
  • Amanda Archer
    Lake Stevens, WA · Member since 2017 · 2 posts · 0 votes
    9y

    Irwin,

    In Washington state, at least around Seattle, the average rent is close, if not over, $2000. The lowest I've see around here was $1200, but that was years ago, and it usually meant the apartments were in pretty bad shape. I think in our situation on this side of the nation, housing is a really big problem, along with homelessness. No one can afford the apartments unless they are receiving government assistance, and those people tend to be disabled people, mentally ill people, or foreigners.

    I WISH rent was $1300, that would be a dream, but even if it were that low, there would still be nothing available. Until the economy and infrastructure improves nationwide, I have a feeling that it will be even harder and even more expensive to rent, and especially buy.

    0Reply
  • TJ P.
    Investor · WI OH · Member since 2015 · 113 posts · 36 votes
    9y

    Currently paying $2500 for 2/1.5 1000sqft condo with non-existant weatherproofing and loud, well-heeled college student neighbors.

    Why? Family situation dictated it.

    I got a decent-paying job in the Bay Area. It's not tech but the wages have to compete with the Googles and Teslas.

    The wife is on medical retirement- lost 3/4 of her income.

    Oldest kid is in one of the best school districts in the nation.

    Why don't I buy?

    1) I don't like the area/state and

    2) I've been burned twice now purchasing homes in cyclical markets and Bay Area prices are ridiculous.

    Is my situation unique? Isn't everybody's?

    Hope the prices come down to where I can purchase then nearly immediately, put in a renter to get some sort of cashflow and move to an area where I could hope to pay $1,300 in rent.

    1Reply
  • Jeff Kehl
    Rental Property Investor · Charlottesville, VA · Member since 2012 · 1k+ posts · 726 votes
    9y

    $1300 is the highest rent I have on a property. I have 4 in that range and they all rent really well. Generally for me, they are professionals with families that could easily buy but they are in an occupation that has relocated them here for a short 1-3 year period of time. Doctors and Nurses, college professors, and mid- upper level executives at local companies.

    0Reply
  • Martin Silva
    Miami, FL · Member since 2017 · 4 posts · 1 vote
    9y
    I pay that much in miami florida. Buying is not that easy
    0Reply
  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    9y

    I've seen studios rent for $2500/month, albeit that was in New York. I agree, why not buy? But not everyone does. It could be because houses in that area are extremely expensive, credit problems, wanting more flexibility, an aversion to debt or home ownership or just who knows. But plenty of people do it.

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