Real Estate Agent · Chattanooga, TN · Member since 2020 · 35 posts · 27 votes
My wife and I have decided to reinvest some funds into rental properties (as many are starting to do now) and I’m about to close on our first two turnkey rentals (in Baltimore, MD and Hummelstown, PA) We’re thankful to have one year rent guarantees on these properties but are exploring the option of purchasing properties from other providers without that guarantee. What is the general climate with rents coming in currently with COVID-19 for the more seasoned investors? I would greatly appreciate your input on this as well as any advice to protect ourselves when purchasing rentals during this time.
Rental Property Investor · Pasadena, CA · Member since 2019 · 8 posts · 2 votes
6y
Ran some preliminary numbers:
School district: 1/1/1
Age of house: 93 years
Average rent for 3 bedrooms within a mile radius for last 12 months from rentometer: $1266.
The numbers are very uncompelling. Looks you are paying a very high premium for a turn key property. Your Cash on cash return might be negative for a few years.
Real Estate Investor · Catonsville, MD · Member since 2016 · 90 posts · 49 votes
6y
I own one on this block and street that I purchased before I knew the market well. I wish I never did. They go for about 50k renovated. If I were you I would get out of of that one fast. A couple years ago hedge funds were paying $5k for properties on this block.
Real Estate Agent · Chattanooga, TN · Member since 2020 · 35 posts · 27 votes
6y
@Alan C. and @Beth H.
Thanks for your input! Thanks Alan for pointing those items out to me. I definitely am learning more that I don’t understand enough right now to make a proper purchase and will continue reading and researching. I’m planning to back out of this deal and am in the process of interviewing several PM companies in a couple different markets to work directly with for acquisitions and management. I really appreciate all the advice that everyone on here has given me! This community has been invaluable already and I’ve only been on BP for a couple weeks.
Investor · Baltimore, MD · Member since 2015 · 155 posts · 166 votes
6y
Glad we were able to help you and stop you from making a serious financial mistake. Don't be a motivated buyer. Take the time to get more education and feel free to contact me for any help with Baltimore (or DC) area properties.