Posted by Russ Sims on May 27, 1999 at 12:34:35:
Is your intent to sub-lease/option it out to a tenant/buyer (called a sandwich lease), or to simply rent to a tenant? If you’re doing a sandwich lease, I wouldn’t be overly concerned with doing a lot of repairs. The type of propspect you’ll attract probably won’t be too picky about leaky faucets or a tear in the carpet. These are things they can fix themselves, just like a homeowner would. That’s the great thing about lease/option tenants. You will find that many gladly accept imperfections because you’re giving them something they have difficulty finding anywhere else: a home of their own!
I can see Sheets point about sticking with 3br homes (or larger). You’ll have higher vacancy rates in a 2br. But if the area of town is good, and the place is in good shape, and if you select your tenant well, you can still make good money. The problem is most folks looking for rentals are young families with kids. 2 small children can share a bedroom for a while, but as they get older it will be a tough sell.With luck you’ll find a childless couple or an older couple looking to downsize.These could be great long-term tenants. On the other hand, if you want to do a sandwich lease, you may find your phone ringing off the hook with folks wanting to lease/option an affordable home of any size. They just want to get their foot in the door. This has been my experience.It took me less than a week to lease option my little 2br out. The couple are happy as clams and they are fixing the place up with updates I couldn’t afford when I was living there. I’m not too concerned with getting this house back!
You can record your contracts at the county recorders office. In my area they charge $8 per page.