Posted by Gary on July 22, 2003 at 12:30:04:
We are having a harder time renting our highest price units. The interest rates are the determining factor here: a prospective renter can buy a modest house with no down-payment more cheaply than he/she can rent. We have therefore had to lower our rents somewhat in those units.
Economy & Filling via Rent /Own - Posted by Littleguru
Posted by Littleguru on July 22, 2003 at 11:31:15:
I am in the process of setting up my business plan and am leaning toward buying Sub2 or L/o and selling on a Rent to Own or Contract for Deed.
Are people who are selling on a rent to own basis having a harder time filling their homes since it SEEMS almost anyone can qualify for a home loan now because of Economy or INT rates. More people are buying hence less renting. Is this even close to accurate? I’m in Michigan How does the plan sound with todays economy. What do you think a good strategy is to go at this?
Thankyou for any feedback…
Re: Economy & Filling via Rent /Own - Posted by Russ Sims
Posted by Russ Sims on July 22, 2003 at 13:25:42:
We have been selling on L/O full time for the last 4 years, and we are having a harder time filling our homes these days. Interest rates play a big role, I’m sure as well as the fact that there are a lot of folks locally doing REI now so therefor a lot more L/Os on the market than when I first began.
Rates are going up, though and that probably will continue for some time (30 yr. fixed rates have increased more than a full point in the last 30 days…thats a lot!)
Keep your business focused on bread and butter homes with reasonable payments on them. Pass on the really high end homes as the high payments make them difficult to market.
And the super low interest rates we have seen in the last year or so? That creates opportunity down the road when rates go up and we as investors can take over financing on homes with 5% financing on them. Can’t wait!
Russ