Paging: WMH (NC)
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Paging: WMH (NC) (by Roy [AL]) Sep 19, 2018 4:43 AM
       Paging: WMH (NC) (by WMH [NC]) Sep 19, 2018 5:16 AM
       Paging: WMH (NC) (by AllyM [NJ]) Sep 19, 2018 5:16 AM
       Paging: WMH (NC) (by Roy [AL]) Sep 19, 2018 5:48 AM
       Paging: WMH (NC) (by Roy [AL]) Sep 19, 2018 5:58 AM
       Paging: WMH (NC) (by myob [GA]) Sep 19, 2018 6:32 AM
       Paging: WMH (NC) (by Ken [NY]) Sep 19, 2018 9:48 AM
       Paging: WMH (NC) (by WMH [NC]) Sep 19, 2018 9:58 AM
       Paging: WMH (NC) (by Sisco [MO]) Sep 19, 2018 10:15 AM
       Paging: WMH (NC) (by BRAD 20,000 [IN]) Sep 19, 2018 11:55 AM
       Paging: WMH (NC) (by Roy [AL]) Sep 19, 2018 12:23 PM
       Paging: WMH (NC) (by WMH [NC]) Sep 19, 2018 12:35 PM
       Paging: WMH (NC) (by Roy [AL]) Sep 19, 2018 12:54 PM
       Paging: WMH (NC) (by Ken [NY]) Sep 19, 2018 12:55 PM
       Paging: WMH (NC) (by WMH [NC]) Sep 19, 2018 1:00 PM
       Paging: WMH (NC) (by myob [GA]) Sep 19, 2018 2:09 PM
       Paging: WMH (NC) (by WMH [NC]) Sep 19, 2018 3:14 PM
       Paging: WMH (NC) (by Roy [AL]) Sep 20, 2018 3:22 AM
       Paging: WMH (NC) (by myob [GA]) Sep 20, 2018 4:09 AM
       Paging: WMH (NC) (by Roy [AL]) Sep 20, 2018 4:39 AM
       Paging: WMH (NC) (by myob [GA]) Sep 20, 2018 5:10 AM
       Paging: WMH (NC) (by Roy [AL]) Sep 20, 2018 6:31 AM
       Paging: WMH (NC) (by myob [GA]) Sep 20, 2018 6:41 AM
       Paging: WMH (NC) (by Roy [AL]) Sep 20, 2018 7:19 AM
       Paging: WMH (NC) (by myob [GA]) Sep 20, 2018 10:48 AM

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Paging: WMH (NC) (by Roy [AL]) Posted on: Sep 19, 2018 4:43 AM
Message:

In a previous post, you mentioned that you try to obtain the highest rent possible when you rent to new tenants. I do the exact same thing.

I do have a few questions for you. Do you get any resistance from applicants on quoting the higher rents? What justifies your higher rents? Do you get better qualified applicants with your higher rents?

I am in the finishing stages of my latest rehab house which when done will be one of my 'Cadillac houses' and I expect to get above market rent for it. When other LL's ask me what it will rent for and I say $750.00,...their reply is "You will never get that amount in this neighborhood". My stock answer is: 'Watch me'

In this neighborhood, rents range from $450.00 - $550.00/month for the typical junky looking 3/1 house. Right now, I have the best looking 3/1 house on the block and the interior will soon be decked out to the max. The real question is: just how much more rent will my future tenants pay for this jewel?

--68.63.xxx.xxx




Paging: WMH (NC) (by WMH [NC]) Posted on: Sep 19, 2018 5:16 AM
Message:

I don't try to justify rent, because when folks come view our (clean, updated) spaces they almost always say, 'This is way better than the other stuff we've been looking at in this price range.' Enough say it that when we get a few "want to bargain" folks, I just say no.

But I've had to combine what I want with the reality of what people in my area make. I've hit my personal ceiling at about $1200/month right now, regardless of size of space. Much more and I disqualify way too many decent tenants. For instance, NO teachers in this area qualify for that rent if they are single.

Much less, though, and I get all kinds of riff-raff applying. I get enough as it is.

There are many houses available in our area for $1250+ (sometimes ++++!) But no decent ones at $1200 or below, except me. Especially pet-friendly housing.

It's harder to justify a big increase to an existing tenant, so that's why I do it at turnovers and push much higher than I would to an existing resident. For existing tenants we go max $25 per month, at turnovers I've gone as high as $150-$200.

Your houses are MUCH better OUTSIDE than ours. I wish we had your talent for introducing such curb appeal! --50.82.xxx.xx




Paging: WMH (NC) (by AllyM [NJ]) Posted on: Sep 19, 2018 5:16 AM
Message:

People with pets will pay way more to find a place that takes them. If you put up a good fence in the back for a dog you will get someone quickly but you have to specify under twenty pounds full grown or you could end up with something scary. --73.178.xxx.xx




Paging: WMH (NC) (by Roy [AL]) Posted on: Sep 19, 2018 5:48 AM
Message:

WMH,

Thanks for the compliment on 'curb appeal',..it is one my tools I use for attracting tenants who can pay the higher rents. Without doing any advertising, I get people on a daily basis asking me if I plan to rent or sell this house.

My stock answer is: $65K cash for the house and $750.00/rent.

Like you, I have to face the reality of what I want and what people make in the area. It does take longer (an extra week) to find the tenant who brings home the required 3X rent to income. But I tend to get applicants with career type jobs instead of the Walmart employee crowd.

I will advertise my house at $700.00 but since most tenants have 2 dogs, I will get an extra $50.00 which gets me to my target rent of $750.00. This house has a 3/4 acre fenced-in backyard which is a 'dog magnet'. And yes, I am pet friendly too,...I would be a fool if I was not. --68.63.xxx.xxx




Paging: WMH (NC) (by Roy [AL]) Posted on: Sep 19, 2018 5:58 AM
Message:

One more thing,...since all Class C tenants understand/worship their automobiles,...I classify my rental houses as either 'Cadillacs or Chevrolets' which is something Jeffrey taught me to do in 2011. Since this house has the Garage Apartment in the rear,...now I have both a Chevrolet and Cadillac on the same lot!

When applicants see both places, I tell them I have both a Caddy and Chevy here,..and there is an obvious reason why one rents for more than the other one. The target rent for the 2/1 garage apartment is $475.00. Add 2 dogs,...cha-ching, cha-ching. --68.63.xxx.xxx




Paging: WMH (NC) (by myob [GA]) Posted on: Sep 19, 2018 6:32 AM
Message:

Roy what would be the residence you refer to? The price is advertised so they know the rent? To me you have a rental advertised and it should be in a condition that allows you to ask the best and highest price. This is one reason we don't do the "CLASS" thing. All our properties are "A" no matter what neighborhood there in. They may be in a C hood but it's an A in the C area. (if you follow me)

Don't want to touch the dog, pet or fool comment!!! --99.103.xxx.xxx




Paging: WMH (NC) (by Ken [NY]) Posted on: Sep 19, 2018 9:48 AM
Message:

Roy,there is a landlord in my area who takes an average place and makes it real nice and gets top dollar,I complimented him on the rent he is charging and he told me most landlords get mad at him for what he charges,I told him it didn't make sense,he is pushing the rents up for all of us why get mad at him? --72.231.xxx.xxx




Paging: WMH (NC) (by WMH [NC]) Posted on: Sep 19, 2018 9:58 AM
Message:

Ken/NY, because he is also raising the bar on CONDITION and many LL's would rather just be "good enough." We had that mindset in the past ourselves, and found ourselves with "good enough" tenants rather than excellent residents.

Roy, you are dating yourself with the Chevy and Caddy reference LOL! People today drive Hondas or Toyota or Suburu (or any version of an SUV)...also Ford 150 Trucks...I bet half your tenants wouldn't know a Caddy if they saw one and probably couldn't even name a car built by Chevy. ;) --50.82.xxx.xx




Paging: WMH (NC) (by Sisco [MO]) Posted on: Sep 19, 2018 10:15 AM
Message:

Who among us does not make their selection based on many factors, price being but one.

I understand that this is a competitive business, and I understand that we all have a limited amount of money. Were rent rates like other buying decisions a 30% -40% bump would be the norm. --72.172.xxx.xx




Paging: WMH (NC) (by BRAD 20,000 [IN]) Posted on: Sep 19, 2018 11:55 AM
Message:

Roy,

I appreciate W's comment about topping out at a certain price level. We see the same thing. I call it Strata like the layers of rock.

Those critical other LLs: most don't have a clue, are stuck in the 90's, or keep their rents lower to attract more people.

We make our homes super clean, smelling great, and updated colors (Repose grey baby!), carpet free, and updated appliances. My only real competition is the new apts.

Rent on!

BRAD --68.50.xxx.xxx




Paging: WMH (NC) (by Roy [AL]) Posted on: Sep 19, 2018 12:23 PM
Message:

WMH,

I envy you because you get $1,200/month and I have to settle for half that. I know your rentals are nice but is it the location (beach front maybe?) that causes you to get the higher rents? Are you in Class B hoods? Only Class A hoods here get $1,200/month rents and those are modern 6/4 executive type homes located on river front property. --68.63.xxx.xxx




Paging: WMH (NC) (by WMH [NC]) Posted on: Sep 19, 2018 12:35 PM
Message:

Oh Roy it is totally location!! We are extremely isolated in a very desirable location. Lack of ANY long-term housing here is at critical mass...we often talk about our dumb luck of stumbling onto this area. It won't last, the developers are coming :( BUT they are building the $$$$ units.

We probably have WAY more cash tied up in ours than you do. We envy you your $5k houses, even your fixed up $65k houses, because that is our starting price before fix-up, if we are lucky.

It's true that because our rents are higher we can have fewer units to make the same gross as you could. Net might well be less, though, because of higher insurance and taxes and maintenance here? That might be an interesting discussion sometime. --50.82.xxx.xx




Paging: WMH (NC) (by Roy [AL]) Posted on: Sep 19, 2018 12:54 PM
Message:

WMH,

Yes, that would be an interesting conversation assuming we can compare apples to apples,..if that is even possible. You probably have the apples and I think I have mostly lemons which I make lemonade out of,..LOL.

--68.63.xxx.xxx




Paging: WMH (NC) (by Ken [NY]) Posted on: Sep 19, 2018 12:55 PM
Message:

Roy,that 6/4 executive home on a river here would be $3000 month easy and the taxes would be easy in excess of $10000-$15000 year --72.231.xxx.xxx




Paging: WMH (NC) (by WMH [NC]) Posted on: Sep 19, 2018 1:00 PM
Message:

I bet we deal with the same clientele, Roy! --50.82.xxx.xx




Paging: WMH (NC) (by myob [GA]) Posted on: Sep 19, 2018 2:09 PM
Message:

ROY your now getting into the "dog ate my homework" phase. He gets 1200.00 because that's the worth of it. With that worth let's all agree it COST more to buy and has more EXPENSES/taxes/insurance.

Yours rent for 750.00-- why because that's the worth of it for your area.

WHM outlines it perfectly in his 1258 post. He's right on with the eval. So please ROY stop the whining---.

We love ya Roy!!!! wake up though and be thankful. --99.103.xxx.xxx




Paging: WMH (NC) (by WMH [NC]) Posted on: Sep 19, 2018 3:14 PM
Message:

MYOB, Roy is not whining. He and I have met face to face, this is just a discussion of general concepts that we have sort of had off and on anyway! Also BTW, I am not a he... ;) --50.82.xxx.xx




Paging: WMH (NC) (by Roy [AL]) Posted on: Sep 20, 2018 3:22 AM
Message:

WHM - Even though I buy properties dirt cheap, I do spend more on rehab than most other landlords. (This is the reason I have to buy dirt cheap to begin with).

My numbers including all of my 18 rentals are like this: average rents are $645/month on a $30K investment (cost of house plus rehab).

The highest price I have ever paid for a rental house is $25K but that house only needed $5K in rehab . The lowest price ever paid was $3,000 and that was the rehab from hell. Again, they all tend to end up being $30K 'all-in'.

MYOB- I am not whining here, just telling it like it is. Care to share your numbers here?

WMH - I hope to see you again at the next Convention. --68.63.xxx.xxx




Paging: WMH (NC) (by myob [GA]) Posted on: Sep 20, 2018 4:09 AM
Message:

First let me apologise to WMH-- didn't know he was a she-- but no matter it's all LLing to me- gender isn't a matter.

Roy not sure what numbers you want? My last purchase was in 2001 when I retired from my full time job. 80+ SFH's that have been reduced to 63. We have 5 mortgages left. Rent is 750 to 1300 but average around 900.00. "A" properties in any neighborhood they are located in. During the years (from 1986) we've refied and paid off with the refi's-- sold some with 100% owner financing and taken all back-- investors didn't have the stomuck for it. One wife of an investor was told that maybe in 7 or 8 years they'd make money-- she went ballistic-- got those 5 back. Our vacancy factor is three tenth's of one percent........

We are proud to say-- we make no money--- we spend every penny every year. Our rentals are our piggy bank. (I do have a 401 from my old job for quick cash if need be-- but haven't needed) --99.103.xxx.xxx




Paging: WMH (NC) (by Roy [AL]) Posted on: Sep 20, 2018 4:39 AM
Message:

MYOB - 63 rentals, mostly paid off and you make no money? I do understand the piggy bank concept but there is something missing here. What do you spend money on each month? --68.63.xxx.xxx




Paging: WMH (NC) (by myob [GA]) Posted on: Sep 20, 2018 5:10 AM
Message:

My employee's (2) and pay cash for everything. Owe nothing (well 5 mortgages) GIFTING

Roy what do I need cash for? paying INCOME TAXES?

Constant Upgrading--- constant new "things".

Did I mention this is a big cash business? --99.103.xxx.xxx




Paging: WMH (NC) (by Roy [AL]) Posted on: Sep 20, 2018 6:31 AM
Message:

Myob,

It sounds like you are someone who has spent many years paying his dues in this business and are now reaping the rewards. I am still paying my dues, however, I can see the Pot of Gold at the end of the Rainbow. --68.63.xxx.xxx




Paging: WMH (NC) (by myob [GA]) Posted on: Sep 20, 2018 6:41 AM
Message:

Roy thank you. We feel the same way. Working 2 jobs my whole life-- til 51 from age 16. Now I kick back and read your fine posts (and others). Help when I can. I've enjoyed your posts as have many here.

Like to share this with you: we have 391 days on royal Caribbean, 201 on Carn, Cele 207 and ncl 81 days. We also owned a sailboat in Tortola for 5 years and until recently sailed her 3 to 4 weeks a year. Maybe that will help you understand WHERE THE MONEY WENT? Loved spending every penny. --99.103.xxx.xxx




Paging: WMH (NC) (by Roy [AL]) Posted on: Sep 20, 2018 7:19 AM
Message:

MYOB,

That is just what money is for,...spending. Who would want to save money and earn 1%, which gets taxed. Are you in Atlanta? I was self-employed in Atlanta from 1986-2005. --68.63.xxx.xxx




Paging: WMH (NC) (by myob [GA]) Posted on: Sep 20, 2018 10:48 AM
Message:

Just south --99.103.xxx.xxx



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