Does anyone live in or service a strong rental market?

We have 2 SFR's & another we'll be putting on the rental market in the next wk or so which are in strong rental areas due to proximity to a military base.

Two of the 3 SFRs are houses we would rather sell but in this market we can hold out due to the hi demand.

I see demand/rents slipping fast in other areas due to so many would be sellers doing the same thing.

If I had it to do over, I'd only buy multis for investment purposes.

Hi Diva,

I know you from BPO forum.

From an agent standpoint, I like rentals for the following reasons: 1. It's easier to get the client into. 2. Closing happens in a much shorter time (i.e., get paid faster. 3. You can possibly turn that renter into a buyer for the same property. 4. Since renting is temporary, that client will eventually need to purchase and they will call you first when they are ready.

From an investor standpoint, I understand where you are coming from, multi-unit is the way to go. Maintaining one site is much easier, less time (and resource) consuming.

As a lender, can you tell me if there are any good loan programs for a renter who wants to purchase the house they are currently renting. I heard that it's not difficult for a lease-purchase, as it is treated like a refi. Is that true?

Yes there are a number of lenders who will work w/a lease opt situation. We are seeing more sellers willing to go this route right now.

I have my own brokerage but I've avoided doing PM tho perhaps it's something to consider in my market we have a lot of hi end properties, vacation/seasonal rentals.

How do you like the day to day PM?

How does that work?

Most gurus out there tell you to buy houses and build a portfolio of houses and after ten years you have all these free and clear properties. It's pretty self serving advice because most people have bought a house and can imagine themselves easily buying more houses for investment, and that makes it easy for the guru to sell his/her courses. The problem is, once you get 10 or so houses in your portfolio you lose your life to landlording and the plan only works if everything goes right. If things go wrong, you get wiped out. What the zero down real estate investing gurus aren't so keen to tell you (because it doesn't sell courses for them) is that it's actually easier to buy multi-family apartments than it is to buy a house. They're easier to finance and raise money for, you can hire professional management, and actually make a lot of money instead of sacrificing your life to being a single family landlord and making a pittance. When you buy apartments you are truly being an investor. It's the best. Check out http://apartmenthouseprofitmachine.com. It tells you all about it, there's a great free course there too that gives you just about as much as other people charge for. Hope this has helped.

Leo

We're starting to see the demand for rentals really tank in my market. Just too many sellers giving up on selling & renting their units out instead.

And builders are renting out brand new homes. In my area rentals are a terrible investment at this time.

May be better with multi's but for SFR's it's bad.

SFR's are in high demand in my market. The typical response from a "for rent" sign in the front yard is 20-25 calls per day. Of those, 5 might be interested, and 2-3 are qualified. I only do month-to-month leases, but it's common for the tenant to stay for at least one year. In four years of combined ownership over two SFR's, I've endured a total of 15 days of vacancy. The CAP rates of these two properties are 11% and 7%. In those four years I haven't spent a penny on advertising my SFR's (sign + craigslist).

The cap rate on my three unit (three one bedrooms) is 17% and my occupancy rate last year was 98%. Advertising expenses are higher, and the quality of tenant is lower (bordering on PITA).

I provide my own management services, so the rates would need to be adjusted accordingly for an out-of-towner.

All in all, this market is great for rentals if you know which neighborhoods offer the best return for the least amount of risk.

If you are looking for a stable rental niche look at student housing near colleges and universities. The normal leases are 10 months leaving 2 months vacant for repairs and upgrades. The units should all be 4 bedroom units. My units include all utilities, basic cable and wireless internet. I just completed a new building on a vacant lot I purchased last year that is close to several dorms, fast food, along a university bus route near a sports bar and a liquor store. It does not get much better than that for a location.

I am interested in investing in the Rochester and Buffalo areas. Can anyone give me some advice about the areas in both these cities to consider purchasing property in?

Grunter,

I'm an agent in the Buffalo-Niagara region and also own several rental properties in the area. Is there something in particular that you have questions about?

Ryan

Hello Ryan,

I'm an overseas buyer. My investments have been in Australia but I will visit New York State soon to look at property and possibly invest in the Rochester / Buffalo areas.

I am interested in units / multi family properties but would like recommendations about good investment neighborhoods in Buffalo or Rochester, or even neighborhoods to avoid.

I know and understand the Australian property market very well but this will be my first purchase in the States. Any information about what to do and what not to do would be appreciated.

Grant

Maybe I should avoid multi family buildings and concentrate on single family buildings as the quality of tenants is higher. I'd be interested in anyones experience. I have rented to students and don't mind this option but in my experience I've had the lowest vacancy rates with my lower end of the market properties. People are always looking for cheap rent.

Quote from Ryan: "All in all, this market is great for rentals if you know which neighborhoods offer the best return for the least amount of risk." That's the information I am looking for Ryan.

Thanks

here on Koh Samui everything is seasonal. The entire island is booked for the winter months and with land ownership issues what they are here in Thailand, it helps the rental market side which ultimately gives a base to the sales market.

well good for you there, it's hard to earn much profit ion our market.