Updated almost 12 years ago on . Most recent reply
First opportunity is scary
Hi, all. I have been saving and looking for my first rental. I found one that has me excited and scared. Asking price... $5250. Yes, $5250. Maybe because its in a bad part of town or maybe because it needs some work - I am handy but have a full time job. The rent comps that I can find (there aren't many) show rent at $500-$600/month. So does the zillow rent zestimate and rentometer.com. The issue is its only for owner occupants at the moment. On August 11th it will be available to investors.
I can post the zillow link if you like. I did a drive by and walk around. It looks like it just needs to be mowed and cleaned up. Haven't been in yet
My initial questions are:
What would be your personal concerns about this property and what would you look for?
What is your experience with tenants in low income housing?
It is legal/wise to post a preliminary ad such as: "2bed 1bath for rent in XX neighborhood - $550/month"? Just to get some feedback.
I really want to feel comfortable with the purchase. I don't want to crush my dreams with a trouble property :). I just simply don't know how to spot one.
Taylor
Most Popular Reply
I assume it is probably a HUD property/foreclosure, since it is only available to owner occupants at the moment.
Don't put too much work or effort into it until after August 11th. With HUD it is definitely timing and a numbers' game. There is a whole strategy to it (I will write a blog post about it, you just gave me the idea :)
It is definitely more challenging dealing with tenants in low income housing. Usually it is better to rely on Sec.8 rental subsidy. I personally have either rented houses and apartments in low income areas preferably to Sec.8 voucher tenants or owner financed them with Contracts for Deeds (the tenant/buyer has more interest at heart, since he is more of an homeowner than a tenant.)
Yes, you could put a blind ad like what you stated to see what kind of feedback you get first.
Good luck! Don't be scared, analyze the numbers carefully, use some due diligence and go for it!