Rentals in Madison>Question Details

Mary Tracy, Home Buyer in Madison, WI

An investor purchased a home in my area for rental. He has over 90 properties. I was told that someone cannot have more than 10 homes. What is true?

Asked by Mary Tracy, Madison, WI Sat Aug 21, 2010

He will be renting in a single family area which brings the neighborhood down. Can he get away with this?

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Mary, you may be referring to how many financed properties a person can have in order to get a Fannie or Freddie loan. That had been 10, but now it's only 4. If this person owns them out-right, there is no restriction.
0 votes Thank Flag Link Sat Aug 21, 2010
Mary,

As a Wisconsin Realtor and real estate instructor, I can tell you that there is no statute that limits the number of homes a person may legally own. There are, especially in Madison, local ordinances dictating how the properties must be maintained
0 votes Thank Flag Link Fri Nov 19, 2010
Mary, as a Realtor I recently sold a home that was a rental property in my own neighborhood. I had sold two homes prior to that on the same street and never looked at the rental as causing detriment to the neighborhood. The owner and renter kept it in fantastic condition much like James mentioned. Embrace new neighbors and make them feel welcome and they will feel proud to be part of the neighborhood.
0 votes Thank Flag Link Wed Nov 17, 2010
Mary there is an investor that owns homes in my neighborhood that are rentals. In a neighborhood a rental may not be a bad thing. There are people that have been displaced because of their financial choices or job cut back. These people still need a place to live. If they have children they want them to be part of a community and have friends. They are not going to do things that would have a detrimental effect on their children. The investor did not get up to 90 properties by alllowing short term people that are going to tear up his properties.
Bt the one of the investors properties in my area is on my street and I wish some of the other people in the neighborhood would keep their yards as nice.
0 votes Thank Flag Link Sun Aug 22, 2010
Mary as the other people have mentioned that the number has to do with getting a loan on the property. If he is paying cash for the properties there is no limit to the number of properties a person can own. As far as having a rental home in the area. Today the rental market is in demand. Many people that might want to purchase a home at this time are not able to. But they want to live in a residential area. People are transfered to our area for a short time. Because of the housing market being what it is they want to rent instead of purchasing. Or the may have a home in another part of the country they can't sell. So there are lot of different people that might rent. We have a lot of people in our area that can't sell their homes but they have to move for some reason so we are seeing a lot more homes for rent.
0 votes Thank Flag Link Sat Aug 21, 2010
And another thing Mary, if you are in a middle or upper middle class neighborhood, it is not necessarily true that a rental will bring down the neighborhood. There is one how in my neighborhood that I know is a rental, but you would never know it if unless you knew the person who lived in it and knew they were a renter. If, on the other hand, students are renting it, that could make a difference, but more because they would probably have more cars, and you could see more people around at night. My sons both lived off campus where they went to school, and from the outside their was no reason to think that their house was any different from anyone else's.
0 votes Thank Flag Link Sat Aug 21, 2010
I din't think there's ever been a restriction on how many properties an individual can OWN. What they do with them may be a different story. You can always check with your local authorities.
0 votes Thank Flag Link Sat Aug 21, 2010
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