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Message
re: Sell the rental?
Posted on 12/2/16 at 3:26 pm to baldona
Posted on 12/2/16 at 3:26 pm to baldona
quote:
The general rule of thumb is 1% of purchase price per month for rent, if you can't do that then its not worth having
Just curious, where have you heard this rule of thumb? I'm by no means an expert, but have never heard this before. This seems a little steep to me. So this rule would mean if you buy a house for $150k, you should be renting it at minimum $1500/month? I don't know, seems high to me.
3
Posted on 12/2/16 at 4:59 pm to Tigereye10005
It works in the low end of the market,you can even get 2% but no way on any property over $200k can you do that. I know Miami Beach had $1m condos for lease for $4500/mo in my building which after maintenance and taxes net you like $1500/mo but you do get significant capital gains.
Posted on 12/2/16 at 8:29 pm to Tigereye10005
The 1% rule is said many places, here quite a bit but I've seen it almost everywhere. Some places you are very very lucky to get 1% and others you wouldn't touch a property unless you got that.
It is never "easy" to find a 1% property, although after the crash it became not very difficult. Now a days it is very difficult, I look at the market almost daily and I see only 10-15 properties a year and most of them I wouldn't want to own. But I'm not in a large market either. If you are in small to medium towns than you generally are not wanting to look at $150k properties, big cities are a different story. But I'm talking more like buying homes for $80k and renting them for $1000. But I routinely see more rural properties for $35k that could rent for $800/ month with not a lot of work.
It is never "easy" to find a 1% property, although after the crash it became not very difficult. Now a days it is very difficult, I look at the market almost daily and I see only 10-15 properties a year and most of them I wouldn't want to own. But I'm not in a large market either. If you are in small to medium towns than you generally are not wanting to look at $150k properties, big cities are a different story. But I'm talking more like buying homes for $80k and renting them for $1000. But I routinely see more rural properties for $35k that could rent for $800/ month with not a lot of work.
Posted on 12/2/16 at 8:37 pm to Tigereye10005
just pull up a zip code map of your town and look for poor areas. $30-50k homes should all day be able to get you 1% or more
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