Rental house on a busy street?

Question

I know that it may have a lower resale value in the future because of the street, but does it still make sense to buy a rental on one of these streets if you can get it at a good price?

Don Chambers · Answer

I like my rental property to be on a busy street because it means lots of traffic to see a for rent sign.  My houses on busy streets tend to rent much faster than those in secluded areas.

As others have said, you may experience problems when selling the house.  You just need to adjust for that when you buy the house.  Make sure you factor in the busy street when deciding if it really is a ‘good price’.

Nathan Emmert · Answer

My opinion, just about every property "can" be a good deal... you just have to accept that "good" is entirely relative to the property.

Because of location it may take longer to rent, attract a lower quality tenant, have a more transient population, demand lower rent... etc.

As long as you've taken all those things into account and STILL have a good price, why wouldn't you buy it?

Martin Syrovatka · Answer

2 important factors for a good rental property location is being close to public transportation and shopping. Being on a busy street shouldn't have a negative effect on renting but will have some draw backs when it comes time to re-sell. If you plan on holding the property as a rental for the long run then you should be all good, but if you plan on re-selling in the near future then you may want to re-consider.

Patrick Rogers · Answer

Yes, it can be a great deal. Take into account the quality of the property and the price. This is an advantage, if it's on a busy street, normally it's close to everything. Many renters are specifically looking for that.

Dave M. · Answer

Don Chambers & Arthur Garcia are exactly right - you can't buy that visibility.  Think about the old signs "if you lived here, you'd be home now!" drivers who see your sign sure will.

A side benefit, if you have other properties nearby you can put a sign up to generate additional leads for those properties with less traffic.

Paul M. · Answer

I find that the acquisition price goes way down but the rents don't go down that much in my area.  So I like it for long term income buy and holds.  I also make sure it is in good condition so I get a good tenant.

The visibility of for rent signs is not relevant to me as all my tenants come from craigslist and that source yields a better quality tenant and a more efficient experience.

Don Drofed · Answer

There are always people who don't mind living on a busy street if they are close to the places they need to go. If you get a good deal on a great home I'd say go for it.

Robert Steele · Answer

I have one blue collar rental on a busy street. The only thing I need to do to get it rented is put a sign in the yard. No Realtor fees, no newspaper advertising fees. It always rents fast. One time I had it rented within a few hours of putting out the sign.

Steve L. · Answer

I own a property that is the top of the T on an intersection.  So my drive way is essentially in the middle of the light.  It also has rear ally access.

I put a sign up and I had two renters within 4 hours.

Not great for resale, but great for visibility.

Mitch Kronowit · Answer

Like Nathan said, if the price is right, you got a deal.

Personally, I don't want to live on a busy street and neither do many other people, but if the purchase price is low enough, you can set the rent very competitively. There are sure to be plenty of tenants out there who won't mind the added noise, especially if it gets them into a place for $100 or so less than another similar place.

Rental house on a busy street?

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