Posted by Jimmy on September 14, 2002 at 18:22:30:
How does 2000 miles away sound?
I live near San Francisco, where I would be lucky to have my gross annual rents from a SFR or duplex be 7-8% of my purchase price. In these parts, all of the action is on the back-end. But I am a cash flow junkie.
So my properties are in East Texas. Gross annual rents are more like 14-16% for SFR’s and 16-18% for duplexes, and 20%+ for 4-plexes.
The manager is a necessary part of the deal.
How far away are your rentals? - Posted by rich
Posted by rich on September 12, 2002 at 20:36:46:
I’ve been leaning toward rehabbing because sales prices for rentals are completely out of line with expenses. For example, there’s a 2 unit in my town that gets 2800 in rent and it’s on the market for 459K. That’s typical of what I see around here.
Yesterday, I had lunch with an old friend that owns about 15 rental units several hours away. He’s been doing this for over 10 years and doesn’t have a management company. I was amazed. Is this very unusual? If it’s not, I guess I will re-examine buying rental properties.