Posted by Tim (CT) on October 01, 2003 at 12:19:31:
I have a 3-family unit in Bristol, CT. All of them are 6-3-1’s and I do about $1,200 in positive cash flow each month. I would suggest only looking at 3 bedrooms. IMHO, you get the biggest return for your money plus the fact that there’s a big demand for them. Every week I look in the ‘apartment’s for rent’ section of the local newspaper. There’s usually about 20 of them. At least 60 to 70% are 2 bedrooms. Another 20% are 1 bedrooms and the rest is 3 or 4 bedrooms. Far less competition, therefore, the rents reflect that. I’m currently getting, $825, $850 and $775. My units are in decent shape. Not great but certainly not nasty. They’re clean. For the most part, all I did was put down new carpet and a fresh coat of paint on the walls.
I, personally, prefer section 8 tenants. Especially, in this market. With interest rates so low, people that had questionable mortgage qualifications 2 years ago are now getting mortgages. Which doesn’t leave much to choose from. Section 8 tenants get free money. They know that and they’re not about to do anything to jeaopardize it. Plus, it’s guaranteed income. It shows up on the 5th or 6th of every the month.
These are my experiences so far. Talk to me in 2 or 3 more years and I might have a different story to tell. But, I think if I’m fair with the tenants but not a pushover, then my tactics/techniques should get me through any tough times that lie ahead. But, landlording is not for everybody. You need to decide for yourself.
Just my $.02.
Good Luck.