RENT TO INCOME RATIO - Posted by BILL

Real Estate Investing
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Posted by Mark (SDCA) on January 31, 2000 at 12:42:13:

I look at gross. It depends on how cautious you want to be. Net is obviously more conservative. Then again, I hate vacancies. :slight_smile:
One other thing, I try to get a feel for the people as well. Where is their income coming from? Salary? Good. Commission. Uh oh. How many people in the house are working? Just 1? Then they are one layoff away from eviction.

Mark

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RENT TO INCOME RATIO - Posted by BILL

Posted by BILL on January 27, 2000 at 13:58:06:

When renting a single family home, what ratio of income to rent is a safe guideline? Would that be different for different size cities?

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Re: RENT TO INCOME RATIO - Posted by Chris

Posted by Chris on January 31, 2000 at 17:10:46:

Bill-

Another thing to take into account if the numbers are tight but these look like good tenant prospects would be to contact their previous landlord to check their rent amount and if they were timely with payment. If the previous rent was similar to your rent that should be taken into their favor.

-Chris

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Re: RENT TO INCOME RATIO - Posted by Chris

Posted by Chris on January 31, 2000 at 11:43:54:

Bill- Check this link out to determine rents.

http://mmink.com/calcs/renter1.html

-Good Luck, Chris

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Re: RENT TO INCOME RATIO - Posted by Mark (SDCA)

Posted by Mark (SDCA) on January 27, 2000 at 15:05:58:

I like 2.5 or 3 to 1 (income to rent). And 2 to 1 is the absolute minimum for me…
And no, I don’t think it would be location related.

Mark

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Re: RENT TO INCOME RATIO - Posted by NellB(ID)

Posted by NellB(ID) on January 28, 2000 at 08:32:07:

Are you talking about a ratio to their gross income or net income?

Thanks–Angels on your body:)

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Re: RENT TO INCOME RATIO - Posted by BILL

Posted by BILL on January 28, 2000 at 10:20:19:

I was a little careless. I was probably thinking gross. I hope Mark will clarify his response. Thanks for the input.