Preparing a Marketing/Pricing Plan to Rent a House Soon After Closing

Real Estate Broker · Rochester, NY · Member since 2010 · 1k+ posts · 700 votes

1y

Akku, solid move getting into real estate early. You’re definitely on the right track thinking through tenant demand upfront, especially with a lot of similar inventory sitting.

For marketing, Zillow is really it. The other platforms can sometimes help, but they’re not as reliable. If similar homes are sitting for 30-70 days, it’s probably a pricing issue. The right rate rents it—no need to overthink gimmicks or incentives.

Virtual staging is the way to go. It’s way cheaper than full staging and makes a big difference in listing photos. Empty rooms don’t sell well, and you want your listing to stand out. At minimum, stage the living room and primary bedroom to give it some warmth.

That said, have you thought about cutting bait and putting your money into a market where the numbers actually work? If places like yours are sitting at $2200 with no traction, you’re taking on unnecessary risk, especially as a first deal. New construction in a saturated market isn’t always the best play if you’re looking for steady returns.

A place like Rochester has way better fundamentals—lower buy-in, strong rent-to-price ratios, and stable demand from universities, hospitals, and major employers. You could get into a solid multi-unit or a single-family rental with real cash flow instead of hoping your Katy rental eventually fills.

Not saying you should walk just yet, but if leasing drags out longer than expected, would you consider selling and reinvesting somewhere with better returns? Have you run the numbers on what your exit could look like?

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Akku Kumar

OP

Member since 2023 · 9 posts · 3 votes

1y

Hi Mark,

Thanks for the reply and advice! I like the idea of virtual staging—it seems like not many of the similar properties I mentioned are staging at all, so I think that could be a definite way to separate my photos from the others. Any advice on the best virtual staging software/websites?

In terms of finding a property that "works," I think you are absolutely right, there are probably better markets with more reliable cash flow. However, for this first property, I was mainly focused on a market I am relatively close to and knew well (Houston) and somewhere that the appreciation would probably make up for the cash flow in the long run. If leasing indeed becomes a major problem, I would consider selling—we'll just have to see what happens! But I like the idea of Rochester or another similar city for my next property.

0 Reply

Lane Berry

Property Manager · Houston, TX · Member since 2024 · 25 posts · 11 votes

1y

Hey @Akku Kumar,

Very exciting time getting that first rental property! My advice would be to really focus on placing a quality tenant. Sometimes new investors can be eager to hit a certain rental amount, pricing a property above market value. This attracts poor unqualified tenants because they have no option but to overpay. Ultimately, leading to issues down the road (eviction/habitual late payments)

1 Reply

Akku Kumar

OP

Member since 2023 · 9 posts · 3 votes

1y

Hi Lane,

Very valid advice! Will definitely look for the best possible tenant. Any tips on what to screen for specifically?

Best,

Akku

0 Reply

Lane Berry

Property Manager · Houston, TX · Member since 2024 · 25 posts · 11 votes

1y

Besides the obvious credit, background, and income verification. I'd suggest a rental verification as well. Call the past 2-3 landlords where the tenant previously lived. To confirm, did they pay timely and what kind of condition the property was left in.

1 Reply

Daniel TanasaBusiness Member

Realtor · Houston, TX · Member since 2019 · 351 posts · 174 votes

1y

Quote from @Akku Kumar:

Hello!

I'm a very new real estate investor and pretty new to BP as well (only my second post) so excuse me for any mistakes in my post.

Last month, I pulled the trigger on getting my first real estate property ever and decided to go with a 4 bed, 2 bath new construction to limit all the variables involved since I am still in college. It is located in some of the newest developments on the north side of Katy, TX 77493 (I am not sure if I can post a link to the Zillow page or provide the address because I don't own it yet). I am set to close on it in about two weeks and am slightly nervous about finding a tenant in a good amount of time, given that there are a lot of similar new constructions in the same community that are up for rent but have been sitting on the market for 30-70+ days.

So, I am asking for some advice on how to prepare a pricing and marketing plan to try and rent it as soon after closing as I can. Most 4/2 houses in the area are renting for approximately $2200 and offer washer, dryer, and internet (which I think the builder provided for all new houses in that community). I expect that my most likely tenants would be families that are new to the area and/or have moved for work. Some questions that I would greatly appreciate answered: 1. Besides Zillow and similar websites, where should I look for leads? 2. How should I stage it and should I get professional pics? 3. How can I separate my property from all the rest?

Even at $2200 I don't expect to get a positive cash flow for the first year, but that's okay as long as I rent it out and learn from my mistakes for my next investments. My main goal is to build good fundamental knowledge so any and all help is appreciated!

Thanks,

Akku

Hello Akku,

Congrats for getting started in Real Estate. With those kind of days on market I assume you're in Sunterra area in Katy. Usually I don't like to buy or recommend to my clients to buy where there is a lot of new constructions going on that don't have a cap on how many properties they sell to investors. That usually creates a big supply of rentals on the market that it 's hard to be absorbed and create a race to the bottom in prices, as all the properties are pretty similar and in brand new condition.

Listing it on the MLS will be casting the widest net and that will make it available on all the other websites. Virtually staging it could be a good inexpensive option.

Good luck!

1 Reply

Gustavo Delgado

Houston, TX · Member since 2015 · 261 posts · 170 votes

1y

Find a realtor. Look for one that has other listings and experience in the area. If you are not familiar with lease applications/procedure/ and contracts, use a realtor to make sure you don't leave anything out that can come back and burn you.

1 Reply

Akku Kumar

OP

Member since 2023 · 9 posts · 3 votes

1y

Quote from @Daniel Tanasa:

Quote from @Akku Kumar:

Hello!

I'm a very new real estate investor and pretty new to BP as well (only my second post) so excuse me for any mistakes in my post.

Last month, I pulled the trigger on getting my first real estate property ever and decided to go with a 4 bed, 2 bath new construction to limit all the variables involved since I am still in college. It is located in some of the newest developments on the north side of Katy, TX 77493 (I am not sure if I can post a link to the Zillow page or provide the address because I don't own it yet). I am set to close on it in about two weeks and am slightly nervous about finding a tenant in a good amount of time, given that there are a lot of similar new constructions in the same community that are up for rent but have been sitting on the market for 30-70+ days.

So, I am asking for some advice on how to prepare a pricing and marketing plan to try and rent it as soon after closing as I can. Most 4/2 houses in the area are renting for approximately $2200 and offer washer, dryer, and internet (which I think the builder provided for all new houses in that community). I expect that my most likely tenants would be families that are new to the area and/or have moved for work. Some questions that I would greatly appreciate answered: 1. Besides Zillow and similar websites, where should I look for leads? 2. How should I stage it and should I get professional pics? 3. How can I separate my property from all the rest?

Even at $2200 I don't expect to get a positive cash flow for the first year, but that's okay as long as I rent it out and learn from my mistakes for my next investments. My main goal is to build good fundamental knowledge so any and all help is appreciated!

Thanks,

Akku

Hello Akku,

Listing it on the MLS will be casting the widest net and that will make it available on all the other websites. Virtually staging it could be a good inexpensive option.

Good luck!

Thank you, Daniel! We are definitely considering virtually staging it if we don't get many leads.

0 Reply

Daniel TanasaBusiness Member

Realtor · Houston, TX · Member since 2019 · 351 posts · 174 votes

1y

Quote from @Akku Kumar:

Quote from @Daniel Tanasa:

Quote from @Akku Kumar:

Hello!

I'm a very new real estate investor and pretty new to BP as well (only my second post) so excuse me for any mistakes in my post.

Last month, I pulled the trigger on getting my first real estate property ever and decided to go with a 4 bed, 2 bath new construction to limit all the variables involved since I am still in college. It is located in some of the newest developments on the north side of Katy, TX 77493 (I am not sure if I can post a link to the Zillow page or provide the address because I don't own it yet). I am set to close on it in about two weeks and am slightly nervous about finding a tenant in a good amount of time, given that there are a lot of similar new constructions in the same community that are up for rent but have been sitting on the market for 30-70+ days.

So, I am asking for some advice on how to prepare a pricing and marketing plan to try and rent it as soon after closing as I can. Most 4/2 houses in the area are renting for approximately $2200 and offer washer, dryer, and internet (which I think the builder provided for all new houses in that community). I expect that my most likely tenants would be families that are new to the area and/or have moved for work. Some questions that I would greatly appreciate answered: 1. Besides Zillow and similar websites, where should I look for leads? 2. How should I stage it and should I get professional pics? 3. How can I separate my property from all the rest?

Even at $2200 I don't expect to get a positive cash flow for the first year, but that's okay as long as I rent it out and learn from my mistakes for my next investments. My main goal is to build good fundamental knowledge so any and all help is appreciated!

Thanks,

Akku

Hello Akku,

Listing it on the MLS will be casting the widest net and that will make it available on all the other websites. Virtually staging it could be a good inexpensive option.

Good luck!

Thank you, Daniel! We are definitely considering virtually staging it if we don't get many leads.

My pleasure. Sounds good. Let us know how it goes.

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Preparing a Marketing/Pricing Plan to Rent a House Soon After Closing

Preparing a Marketing/Pricing Plan to Rent a House Soon After Closing

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