Author Topic: top 5 things you look for in a rental?  (Read 1497 times)

kenmoremmm

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top 5 things you look for in a rental?
« on: March 20, 2018, 11:07:12 AM »
i'm about a month away from selling a property in seattle and i plan to take the proceeds via a 1031 exchange to the midwest. i've been reading up as much as i can and just getting my feet wet. it'll be the first out-of-state investment for me.

as such, i'm curious on the forum's take on two broad topics:
1. what are the top 5 things you look at specifically for the property you're buying?
2. what are the top 5 things you look at for the neighborhood/city/state/region that your property will be in?


Jon Bon

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Re: top 5 things you look for in a rental?
« Reply #1 on: March 20, 2018, 11:21:48 AM »
i'm about a month away from selling a property in seattle and i plan to take the proceeds via a 1031 exchange to the midwest. i've been reading up as much as i can and just getting my feet wet. it'll be the first out-of-state investment for me.

as such, i'm curious on the forum's take on two broad topics:
1. what are the top 5 things you look at specifically for the property you're buying?
2. what are the top 5 things you look at for the neighborhood/city/state/region that your property will be in?

Where/What are you looking? Seattle is obviously a super pricey area so you could have your pick of properties.

Price/DP - Different styles of homes have different DP requirements.
Cash Flow - Potential for increase/decrease.  Can I convert the attic to increase rents? Or is a near by business closing and going to depress the area.
Currently Rented - I like having tenants already in place assuming they are on time and not cooking meth.  This way you already know what your market rent is.
Condition - How much work am I going to have to do ST/MT/LT? Often insurance will get involved and dictate you have to do repairs.
Location/Market - How is the area doing? Am I going to have trouble renting this in the future?

I only buy in areas I know, plus I want to be able to access major issues as the arrive with my own eyes. So I am not much help to you there.  That being said I totally understand why your looking out of state!


clarkfan1979

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Re: top 5 things you look for in a rental?
« Reply #2 on: April 05, 2018, 02:05:49 PM »
Property

1) Low property taxes
2) good bones
3) easy and inexpensive repairs

Neighborhood

1) I like to buy a "C" property in a "B" neighborhood and turn it into a "B" property
2) Walkable
3) Current development going on that caters to "B" tenants (Starbucks, pet groomers, upscale restaurants and bars)


Blindsquirrel

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Re: top 5 things you look for in a rental?
« Reply #3 on: April 15, 2018, 10:44:36 PM »
 1A and 1B. Play first not to get hurt. Buy houses that you will not lose money one, even if you have to sell it and not rent it. Follow Buffets rules. # 1 do not lose money. Rule #2. See rule number 1.

1- purchase price+repair cost+future repairs vs #2
2. Expected rent yield
3 property taxes
4 School system
5 3 bedrooms and above or 1 bedroom. i do not like 2 bedrooms. tough to sell.

kpetar

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Re: top 5 things you look for in a rental?
« Reply #4 on: April 16, 2018, 01:06:36 AM »
Simplification:  If I can make a profit from sale that exceeds the amount of money I spent on buying and renovating, than I'am good to go.

Top 5:

1. Net cash flow/gross rent
2. Return on equity
3. Cash on cash return
4. Return of capital gain
5. Expenses