Rental Property Investor · Evansville, IN · Member since 2015 · 61 posts · 25 votes
I'm in the analysis stage of my first acquisition. It's an 3/1 1500sqft sfr. It wouldn't be rent ready for 60 days, which would put it available the first of October. I'm concerned about the decreased demand this time of year leading to extended vacancy. Any thoughts and encouragement would be appreciated!
Rental Property Investor · Carrollton, TX · Member since 2013 · 750 posts · 538 votes
11y
@Derrick Powell - we closed on a house this time last year and had no issues renting it around October. Of course, the DFW market is on fire, and the city with that house in particular rents fast; how is your market and the general rental supply? If you want to see historical lease-up times for October, a realtor or someone with MLS access should be able to research the time it took to rent for the same month in 2014, just to help you get a feel for timelines.
Also, if it is a great deal, it may be worth the buy even if you have to absorb some extra vacancy time.
Rental Property Investor · Carrollton, TX · Member since 2013 · 750 posts · 538 votes
11y
@Derrick Powell - we closed on a house this time last year and had no issues renting it around October. Of course, the DFW market is on fire, and the city with that house in particular rents fast; how is your market and the general rental supply? If you want to see historical lease-up times for October, a realtor or someone with MLS access should be able to research the time it took to rent for the same month in 2014, just to help you get a feel for timelines.
Also, if it is a great deal, it may be worth the buy even if you have to absorb some extra vacancy time.
Also, if it is a great deal, it may be worth the buy even if you have to absorb some extra vacancy time.
Andy
If it's really a good deal, I would second the idea of closing now and potentially dealing with a few months of vacancy up front.
Spread out over a 30 year or even a 10 year hold, it's not as big of a deal - especially if the deal still meets your return metrics after factoring in x months of potential vacancy as part of the acquisition costs
No one has a crystal ball to tell you if the market will move with you or against you if you wait. But there's no guarantee of finding a good deal again very quickly (again - if it really is a good deal).
Rental Property Investor · Evansville, IN · Member since 2015 · 61 posts · 25 votes
11y
@Andy W., I spoke with the property management company I will be using and they said demand is a little softer that time of year but the area rents quickly. So I submitted an offer yesterday, received counter and re countered, now awaiting response.
Dmitri: $28k purchase price + $950 closing costs + $35k rehab. ARV approximately $85k. $950/month rent. Solid C+ neighborhood with strong rental demand. I don't expect significant price appreciation.
Thanks again for the encouragement and reassurance! This first one is a little nerve racking! I'll keep you guys updated. Please let me know if you all need anything.