My name is Gilbert and I am fairly new to Bigger Pockets. I am currently pending on a duplex in the Westmont area of South Los Angeles (just south of Century, between Western and Normandie). I have some concerns and questions about how to go about pricing my rental unit. I would be renting out the back detached house, 2bed 1 bath unit with washer/dryer hookups and dishwasher.
Firstly, what are the best practices when it comes to determining rental rates for such units? Do I reach out to property managers for rental pricing, even though I'd manage it myself? Do I simply look at similar units in the area? Doing so has been challenging because price seems to fluctuate quite a bit. I am also concerned about vacancies. Can anyone tell me what a reasonable amount of time for a vacancy is in that part of LA? I'm sure vacancy duration also has to do with whether the unit is over priced or not.
What about section 8? Should I be looking into renting through section 8? Pros / Cons? Any thoughts on these subjects would be a huge help.
Hi Gilbert, I sent you a PM with my response.
Based on what I've seen with Section 8 tenants near my neighborhood... I strongly do not recommend doing Section 8. ^_^
i LOVE westmont!!!!!!! most of it is non rent controlled, this is a great area for an investor seeking better cap rates.. i have 8 units in the area myself.
depending on how updated your 2bed is, id say 1300-1600 is not out of the question. i have a few section 8 tenants and most are not... the section 8 tenants in the area still need to be vetted, make sure you collect deposit, and make sure you get people who do not have evictions (this filters out a LOT of people). its actually still a very competitive rental market and in my opinion isn't going to cool down given all the large scale construction projects in the region near Inglewood and the lax Manchester square etc
best of luck
Thanks for the response Alex! Our 2 bed 1 bath unit is completely remodeled with brand new appliances, washer dryer hookups and ceiling fans in each room. Glad to hear you are bullish on Westmont and have properties there as well. What are your thoughts on providing a washer and dryer?
Sounds like you don't have a real issues with long term vacancies. That has been my biggest fear - that I have my unit sit vacant for a long period of time. I suppose if my rental pricing is at market value, i should be ok. Fingers crossed.
Thanks again Alex and let me know if you have any other tips for me.