What's everyone's thoughts on the Lincoln SFH market? Anything I see FSBO or on the MLS are over priced for renting out. I don't see how I could buy a 2 bed 1 bath for 110K and rent it out for $1100. Am I looking at this wrong or is buying them as investments way out of line?
SFHs rarely cash flow and are much higher risk with higher expenses for a single tenant. They are a better investment for speculators relying on appreciation. They throw in some of their own money every month to cover costs until they can cash out.
SFHs will also be harder hit when interest rates climb back to normal and when the recession hits.
Currently the Lincoln market is sellers market so that why prices are inflated for MLS or FSBO'S. If you are looking for a rental property you'll most likely find it off market (wholesale, marketing, networking word of mouth, etc...) There are deals out there you just have to look a little harder, dig a little deeper and network with other investors. If you want to message me I can tell you about the current property you might be interested in. Let me know if I can you in any other way thanks and good luck.
Josh is correct. Each investor has their own rental criteria and very few deals will be found on the MLS. And currently FSBO's that make good rentals are the ones that need renovations. You can pick those up at below market value, put some updates in and rent them for cash flow.
All our SFR's cash flow because we bought and renovated them right. I also have a two bed SFR if you are interested.