Simon, Home Buyer in Brentwood, TN

What is rate of return from condo rental property? Are there many whole rental building for sale available, pricing under 1.2m?

Asked by Simon, Brentwood, TN Sun Mar 31, 2013

Buying condo for rent vs buying single family home, which one has better return?

Help the community by answering this question:

Answers

3
Your rate of return, like Judy mentioned, is dependent on the upfront cost of the building, the cost of maintenance and repairs, and the cost of licensing minus rent collected. If you're interested in purchasing a whole rental building for under 1.2m, I would recommend looking at a few new-construction opportunities opening up in Nashville neighborhoods like Hillsboro Village and West End. These areas are in high-demand because of their proximity to Vanderbilt, which means guaranteed renters and the possibility to collect relatively high rent. So much so that many homeowners in these areas have converted their homes to be able to rent basements or converted upstairs suites to local Vandy employees and grad students. Such converted homes in these areas can run between 450k to 750k, and if they have already been converted, this can mean generating rental income from as many as 3 to 5 different tenants.

If you'd like to hear more about the best options for your money and have an earnest conversation about the best solution for you, please feel free to contact me here or drop me a line at theholtrealestategroup@gmail.com.
0 votes Thank Flag Link Wed Apr 17, 2013
The rate of return depends on your costs, the rent collected, vacancy rate, etc. You need to figure that out and then determine how much, if any, you plan to finance.
0 votes Thank Flag Link Thu Apr 4, 2013
Simon,
A lot of this is based on where you buy the condo for the rate of return. It varies throughout town. There are opportunities under the $1.2 mark, but again all dependent on what you want to do, i.e. repairs, quality of renters, etc.

Thanks,
Andra Brewer Green
http://www.eastnashvilleagent.com
"Everyone needs a friend in Real Estate"
0 votes Thank Flag Link Mon Apr 1, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer