House Next To Railroad Tracks

[JOHN DALEY]

I found a great house; move in ready. Just needs some paint and minor landscaping. It is in an amazing area where I know I could get a renter quickly in this area. But there is an active railroad tracks right next to the property. I have no clue how this will affect the house value, rental value, etc. Any help will be great.

[Mike H.]

If you're getting a big enough discount on the house to where you're going to be all in for little to no money, then do it. But figure that you're going to have to discount the rent a couple hundred bucks to get a renter to be willing to get past the tracks.

I have a house that is two doors down from the tracks. And the one house/business next to the tracks is literally a gun shop. I got 1250/mo rent for that when the market rent was probably 1350.  Great tenants too. Older couple that pays like clockwork. It doesn't bother them a bit.

Bought it for 63k. Put in 25k in rehab. Appraised out for 130k. Rents for 1250. PITI is 800/mo. Gross profit 450, net about 200/mo or so. I'll take that all day long with little to no money out of pocket.

You'll find a renter for it. Just a matter of discounting it a 100 to 200 off market. I do the same with houses that have no garages. I have 2 that don't have garages. I discount the rent 100 a month or so and have them rented just as fast.