We have been landlords for 12 years...so we have seen lots, over the years.
Here, it is always cheaper to be a home owner than a renter....
We will easily get $700-$800 a month rent for this house.
That seems too good to be true. It seems pretty crazy that someone would pay $800/month to live in a house they could purchase for $15,000. After just 18 months they could have paid it off in full and live rent free, or they could get 15-30 year mortgage for $100 a month. Who has $800/month to spend on rent in what sounds like a low cost of living area but isn't bright enough to realize this?
5 1/2 yrs ago, we bought a piece of land, which had an 1970's mobile home on it.
The sellers wanted to get rid of it.
We paid the sellers $1000 a month for 20 months.
in turn
we rented it out for $750 a month...tenant has been there for all this time.
Why?
because he can't get a loan to buy it himself.
Should mention, for this property, we are offering it as a Rent to Own.
He rents it for 10 yrs at $750 month, and does ALL repairs and maintenance.
Should he stops paying rent, he moves, and we have an improved property...and he has not gained any equity.
After 10 years, we sell the mobile to him for $1.00 (one dollar)
we made $90 K in rent, less $20K purchase price...profit $70K
We are pleased :)