Posted by David Krulac on February 04, 2002 at 19:15:00:
Jeff ,
yes I’ll use it for 1% for 2, 3, maybe even 4 units. It just me, it doesn’t work in every market. The higher priced the market, the less likely it will work.
and plenty of people buy rentals with less rent, just not me.
2 vs. 3 bedrooms?? Seller offering L/C - Posted by Tim (MI)
Posted by Tim (MI) on February 04, 2002 at 12:26:40:
what are the opinions out there regarding buying a 2 vs. 3 bedroom SFH for rental purposes? Have a house in my town that is 2 bedroom that owner is considering a land contract. House is worth approx. $67-69k, and could probably rent for $550/month. Seller is asking $69,900 but is not real motivated, if doesn’t sell will rent again. Is vacant right now. How much do you offer on a L/C to make numbers work to break even? what interest rate and term is reasonable if you can only get $550/month rent. Or, should I avoid 2 bedrooms altogether and move on to next deal?
2 vs. 3 bedrooms?? Seller offering L/C - Posted by David Krulac
Posted by David Krulac on February 04, 2002 at 13:17:04:
Tim,
I have nothing against 2 bedroom rental, have and now own them. The number of bedrooms is not the problem. The problem is the rate of return. For a rental I want to see the monthly rent equal to 1% of the price.
In this deal either the property has to be bought for $55,000 or the rent needs to be $699. If neither of those numbers can happen then I would pass on the deal.
But that’s just me.
David Krulac
Re: 2 vs. 3 bedrooms?? Seller offering L/C - Posted by Jeff in MKE
Posted by Jeff in MKE on February 04, 2002 at 17:17:31:
Hi Dave,
Do you use the same formula on two family homes?
Lets say you buy a 2 family for $80,000 do you expect a rent of $800.00 for both units combined?
Do you use a different formula for two family homes?
Thank you for your time,
Jeff