Rental vs. Residential appreciation? Is it equal? - Posted by Tim

Posted by Ronald * Starr(in No CA) on August 25, 2003 at 22:18:44:


SFHs. The rental properties are “regular residential properteries.” Assuming you maintain them well, they will appreciate like owner occupied properties in the area.

However, there is no guarantee that any of the properties will appreciate in the future. If they do, you probably can accelerate your investment program a little. However, just be sure that you have good cash flow. Then save the cash flow for your next purchase.

Real estate investing is a long-term process.

Good InvestingRon Starr*

Rental vs. Residential appreciation? Is it equal? - Posted by Tim

Posted by Tim on August 25, 2003 at 20:59:58:

Short and to the point! Will rental properties appreciate at the same or better as regular residential properties? This is assuming that each is a 2-3 bedroom home with modest landscaping, maint., interior, etc. The reason I ask is, I am looking for some $$ backing to purchase low income (section 8) and after a short period, take my equity out as a down payment to finance more. Therefore, depending on how much it appreicates, will determine how much I can pull out in equity to keep growing. Thanks for any help.

Re: appreciation? Is it equal? - Posted by Brent_IL

Posted by Brent_IL on August 27, 2003 at 14:58:23:

Something that Gavin touched upon is that Section 8 tenants have little income by definition. If a tenant’s income is $600 a month, and $180 goes to their portion of the rent, who’s going to buy a lawnmower or pay to have the carpets steam cleaned?

I imagine that wear-and-tear will be higher.

Yes, if… - Posted by Gavin Wilkinson

Posted by Gavin Wilkinson on August 27, 2003 at 11:10:11:

It is, if you, and your tennant treat your rental house with love and respect. When I buy a house, I don’t care about what it was used for before. I just look at the house. Has the painting been kept up, or is paint everywhere peeling after 10 years of no work. Are the carpets kept up or ready for replacement. Is the garden a patch of crabgrass or a place you with to sit in. Is there 200 hours of cleaning to catch up on, or is the house ready to go. With section 8 tennants, expect that you will have to manage the house closely to make sure it does not fall into disrepair. Figure the time into your budget and don’t skip on the regular work to keep a place up!