4 digit rent - Finally

Since becoming a landlord in 2006 and with Class C market rents always in the 3 digits,...today I busted the 4 digit rent 'glass ceiling' and rented out a house for $1,000.00. Even got a $1,000 deposit too! This is something I have dreamed about for years and even wondered whether it was even possible but it did happen this morning when I rented the 3/2 rehab I have worked on since March 17th.

--71.207.xxx.x

4 digit rent - Finally (by DJ [VA]) Posted on: Jun 23, 2022 12:53 PM
Message:

That's great - good work! --68.229.xxx.xxx

4 digit rent - Finally (by Jim in O C [CA]) Posted on: Jun 23, 2022 12:59 PM
Message:

I always make my deposit a different amount so the tenant doesn’t think they paid first and last. --99.23.xxx.x

4 digit rent - Finally (by Roy [AL]) Posted on: Jun 23, 2022 1:23 PM
Message:

Jim,

Last month's rent has never existed in my state. When I lived in CA in mid-80's, last months rent was commonplace but in AL, it has never existed because most tenants do not have that much money saved.

DJ - Before anyone pops a cork on a champagne bottle, I need to confess that I had to pay a hefty price to get to 4 digits. In hindsight, I probably will not do it again,...just to join the 4-digit club. I had to do it once just to see if it was even possible, but again my 'price of admission' was costly. --71.207.xxx.x

4 digit rent - Finally (by David [MI]) Posted on: Jun 23, 2022 3:09 PM
Message:

If inflation doesn't cool down, you will soon get your five digit rent! --50.4.xxx.x

4 digit rent - Finally (by Still Learning [NH]) Posted on: Jun 23, 2022 3:12 PM
Message:

The price of admission may have been high but watch to see if the quality of tenant is easier, more responsible, treats the place better, pays on time etc. The other benefits may or may not make it worth the price of admission. --75.67.xxx.xxx

4 digit rent - Finally (by gevans [SC]) Posted on: Jun 23, 2022 4:16 PM
Message:

Roy,

I started out like you, with all class C places. I bought my first B place maybe 12 years ago (LL for 24 years). No turning back.

Less: drama, turnover, repairs. Rents per dollar invested are also less...

More: $$$,free time, quality tenants.

Half my properties are now B. --158.115.xxx.xxx

4 digit rent - Finally (by Ken [NY]) Posted on: Jun 23, 2022 4:22 PM
Message:

I bet it is worth the difference inprice,you are getting about $300 month more rent but i bet the difference in taxes and mortgages payment are less than $300 month and better quality tenant --74.77.xx.xx

4 digit rent - Finally (by Roy [AL]) Posted on: Jun 23, 2022 5:04 PM
Message:

Gevans,

I took a big chance and rehabbed this house to Class B+ standards which is why it costs me a lot more than I am accustomed to paying for just a normal C rehab. And I think I have rented to a quality Class B tenant also but only time will tell if that pans for the best.

This house sits on a dead end street in which there are more MH's on the block than foundation built houses. Actually there are only 2 foundation built houses on this street and I own both of them now. They are right across the street from each other. One house rents for $750 and the other rents for $1,000.

The $750.00 rent 2/1 house cost $35K (my cost basis in 08) and the $1,000 rent 1,600 sq. ft 3/2 house cost $75,000 (my cost basis also). Do the math here. This is why I prefer small houses and I will never buy a big one again.

--71.207.xxx.x

4 digit rent - Finally (by Homer [TX]) Posted on: Jun 23, 2022 5:12 PM
Message:

Congratulations on 4 digits! As long as this inflationary period continues , you can start pushing those others up as well. I started out 19 year ago in my class C hoods renting them for $925 a month. Just rented one of them today for $1785! Never imagined! Rent On! --66.169.xxx.xxx

4 digit rent - Finally (by Ray-N-Pa [PA]) Posted on: Jun 23, 2022 9:37 PM
Message:

Cheers! --24.101.xxx.xxx

4 digit rent - Finally (by Dodge [PA]) Posted on: Jun 24, 2022 5:35 AM
Message:

Congrats! --174.216.xx.x

4 digit rent - Finally (by Roy [AL]) Posted on: Jun 24, 2022 6:53 AM
Message:

Homer,

In my small city, where 80% of the population is poor working class, Class C rents range from $600 to $900.00/month. Class B rents range from $900 to $1,400 and Class A rentals (only a handful here) start at around $1,500/month. For $1,500/month, you can rent a modern 3/2/2 house on the river front property here. That same house would sell for $300K -$400K. --71.207.xxx.x

4 digit rent - Finally (by gevans [SC]) Posted on: Jun 24, 2022 6:58 AM
Message:

The same class C MH I started with in 1998: rented for $325 then, $795 now. And it's been paid for over 20 years.

There is no question I get higher returns on my class C properties. But they are also much bigger headaches. --158.115.xxx.xxx

4 digit rent - Finally (by Roy [AL]) Posted on: Jun 24, 2022 7:19 AM
Message:

Gevans,

My only SW-MH is in a poor white D hood, rents for $675.00/month and finding a half decent tenant can be challenging. I am fully aware of the headaches you mentioned. --71.207.xxx.x

4 digit rent - Finally (by Vee [OH]) Posted on: Jun 24, 2022 7:30 AM
Message:

Roy, now you have some time to compare the cost sheet on each side of the street and move some other rental costs upward... --76.190.xxx.xxx

4 digit rent - Finally (by Roy [AL]) Posted on: Jun 24, 2022 8:31 AM
Message:

Vee,

I have already done that. Most of my 2+ year tenants got rent increases effective last April. With houses that came vacant, rents were bumped $100.00-$150.00. In my C & D hoods, I have to be very careful with rent increases since my tenants are more broke now than when they moved in. Inflation is eating them alive even though most of them are not smart enough to realize it. Half of my tenants can not afford a $100.00 emergency expense. I have one tenant who drives 60 miles each month to the GA state line just to buy lottery tickets. --71.207.xxx.x

4 digit rent - Finally (by 6x6 [TN]) Posted on: Jun 24, 2022 8:59 PM
Message:

Roy, I bet it will be worth it. --73.120.xx.xxx

4 digit rent - Finally (by Roy [AL]) Posted on: Jun 25, 2022 8:20 AM
Message:

6x6,

I have always wanted to know what was the absolute highest rent I could possibly get in a Class C neighborhood. In other words, if you built a Class A house inside a Class C neighborhood, what would be the highest rent that A house in the C hood would produce? What separates an A hood from a C hood are mainly property values (cost of land of dirt). As property values increase, rents and selling prices tend to increase also.

What I did with this house was an experiment. Instead of doing my normal Class C rehab, I chose to spend the extra money and do a Class B+ rehab just to see how much rent I could get. The only thing about this house that keeps it from being a 'perfect house' is that it does not have a 2-car garage which all Class A houses have. With an additional $20,000 a 2 car garage with concrete floor/driveway could be built onto this house but I chose not to go there. --71.207.xxx.x

4 digit rent - Finally (by Nellie [ME]) Posted on: Jun 25, 2022 9:48 AM
Message:

All of ours are above $1000 now. When we bought in 2004 they were $400-600. Getting very close to triple the rent. A lot of the expenses are also triple, though. But we do have cash flow now. --76.179.xxx.xx

4 digit rent - Finally (by zero [IN]) Posted on: Jun 26, 2022 8:21 AM
Message:

Roy,

Way to go on the fourth digit. Right now I can only say that is I include a digit on the other side of the decimal.

Hope that it ends up being worth the extra money and headache to get there. I keep bumping mine up but my market doesn't allow the crazy high rents... yet. --107.147.xx.xxx

4 digit rent - Finally (by peter [NH]) Posted on: Jun 27, 2022 11:09 AM
Message:

NIce! --73.89.xxx.xxx

4 digit rent - Finally (by Phil [OR]) Posted on: Jul 1, 2022 1:39 PM
Message:

All depends on where you are--and the price of homes in the area. 20 years ago my first rental was $1200. It is now going for $2700 The only thing I have under 1K is a tiny cottage --$700 --76.138.xxx.xxx

4 digit rent - Finally (by Tarheel T [NC]) Posted on: Jul 2, 2022 7:04 PM
Message:

Congrats Roy. I mostly do S8 and no one cares about rent increases. ive got a couple 3/2 doublewides im getting 1875 for with me paying water sewer trash pickup,lawncare --172.58.xxx.xxx

Reply:

Subject:	RE: 4 digit rent - Finally
Your Name:
Your State:

Message:

4 digit rent - Finally

Would you like to be notified via email when somebody replies to this thread?
If so, you must include your valid email address here. Do not add your address more than once per thread/subject. By entering your email address here, you agree to receive notification from Mrlandlord.com every time anyone replies to "this" thread. You will receive response notifications for up to one week following the original post. Your email address will not be visible to readers. Email Address: