There is also another growing niche of rentals that can be extremely lucrative. These are the smaller homes in more urban areas that appeal to Gen Y tenants. They don't want to pay for extra space that is not needed, don't need a sprawling lot and care more about walkability to their jobs and night life than schools and impeccable living conditions. I hold a real estate portfolio like this and have made out quite well; just don't tell them it's cheaper to buy their own house than to buy mine for me! Unless I'm their agent, of course!
Bob Thomas gave a good answer... I've got a property management business as well.. not as big as his... but we do manage homes in the areas you are thinking of making a purchase in.
They do have to be turn key though... folks are picky... but you know what, you will get top dollar if it's got great curb appeal and is clean inside. Rents are going up too....
We have a 5 bedroom in Folsom that last year we leased up at $2,000. The lease is up and the tenant is moving out at the end.
We began to market it last week by placing it on several websites like Bob does. We've got folks ready to put down their money sight unseen because the current tenant hasn't moved out yet and we're not able to show it.
Oh... and the rent is now $2,250 with the tenant paying the Water, Sewer and Garbage...
I hope this helps...
Make it a great day...
If you need future assistance just let me know it will be my pleasure to assist.
Bob Thomas, CRS, GRI
Broker Associate - Residential Property Manager
Mark III Management
1321 Howe Ave. Suite 101
Sacramento, CA. 95825
Please visit us at http://www.markiiimgmt.com for more property information.
Take-or-leave-it advice: 1) make sure your house is move-in ready before showing it. Renters are skeptical about works in progress and won't commit to an uncompleted house. 2) set your rent realistically in line with the current market rents. An extra $100 a month over market rate might help your worst fear realize itself
The average rents are about $1 to $1.25 in Sacramento. So, if you don't go crazy, have a relative average mortgage payment, you can use your home as a rental. Keep in mind, schools (check out greatschool.com), close to shops, and commuting. This will be key to make your house a better rental property.
I don't know much about the schools in Rocklin or Roseville. However, Fair Oaks and Carmichael are in the San Juan School District and they have some great elementary schools, parks and some nice neigborhoods.
If you want, I know of many homes that you can move in now and be nice rentals down the road.
Century 21 - Noel David Realty
She is correct, for this reason typically. The payments are to high considering what they paid for the home before when properties were over inflated. You want to look at what you will be paying and what he rents are in that neighborhood. Again, if you are at the top then no but, if you have a cushion it would seem OK.
Every investment is different. For a more exact information contact your agent or call me if you do not have an adviser.
DRE Lic. as James Collins 10104820
To focus on your question:
If you need the rents to be at the high of the neighborhood then run. If not, then you will have a cushion to play with.
Questions please call,
DRE. LIC. 10104820
But I have heard that the rental market is soft. Some sellers who are doing short sales are doing them because they own rentals and can no longer rely on their ability to rent them out. A guy told me yesterday that he used to get $1,200 for rent and is now lucky to get $750.
I imagine that as long as you are realistic with your rental expectations, you should be OK.
Lyon Real Estate