Client Looking For Rental Propety

[SELLITNOW]

I Have A Client Who Wants Rental Property. I Have Found A Few In The Price Range They Want - Under $60,000. Most, However, Have Significant Problems . . . I.e. Being Sold "as Is" And "warning - Get A Radon Test . . . For Your Info. Only" Type Of Messages . . .

Should I Advise My Client To Just "give Up" Or Hang In There And Keep Looking . . .

[BuyHawkeye]

They are out there. But $60K in some markets might be close to impossible. Also, there is rarely such a thing as a screaming bargain in top notch condition (I would already own it ).

[darrenwoodard]

I know that if you were in my market, I would say hang it up.

[jessiesc]

You didn't mention what type of property they are looking for or where: land, sgl fam. home, attached, multi-unit, condo etc.

While it is certainly possible to find something in our area for that price, as others have stated it will not be in top notch condition, will require either some updating or improvement and will be in the lower income area.

I have found that many new investors do not recognize land and attached sgl families as a great starting place for 1st time investors (land has many rental potentials if it's located in the right area).

In addition, while the lower income areas are not the most profitable for rentals, they certainly have their benefits including Section 8 housing (public assisted housing).

Hope this helps.

[lprest]

You need to advise them about what rent they could expect, and talk to them about repairs and maintenance costs vs. that rent. even if the selling price is right, if it will take too much to make/keep it habitable it isn't worth it. Also, what kind of neighborhood are these in, will they attract a good quality tenant, or are they likely to be constant trouble?
In our area it is very hard to find a good property under $100,000, and a site-built will go closer to $200,000.

[TrimarkProperties]

Feel free to PM me-- my company's entire MO is rental property (development, management, and purchase-- and occassional sales).

In our market, 60 would not buy anything worth buying unless they were bulk buying-- when the new condo developments don't do well, and they hit completion, many times the developer can't pay the bank due to missing their sales forecasts and will sell x units at 25% below market rate, if you have cash. Call the developer directly for anything large condo development that completed more than 3-4 months ago and has lots of units available. Ask for the sales manager and push for a deal.

That said-- I wouldn't say that these are the best RENTAL properties. Personally, I wouldn't invest in rentals at a condo community that is in dire straits.

[TrimarkProperties]

And I should say that in our market, the condos that you can bulk buy for 60 aren't super nice either...

[SELLITNOW]

Well thanks for the advice. I am slowly getting my client to consider higher priced options, for pretty much the "sake" of the reasons you guys mentioned. Better area, better property, better conditon, better price, etc.

Hopefully this will turn out good . . .

[BarryC]

SellItNow,

You're in Arizona right? I've had a lot of potential clients who have been interested in low priced properties like the one's you're talking about. I would seriously think about just setting them up on an email home search, and have them go out and view the properties before you go out and open up doors for them. I gotta be honest, at $60,000 after broker splits, taxes, gas, my time etc, I wouldn't be willing to put a ton of time in helping them find a property. That's just me though.

It's just my opinion that you could find some better prospects elsewhere (internet, open houses etc...) Believe me though, I know how it is when you are getting started and just want to make a sale.

My best advice would be to get a laptop with a wireless card and camp out at open houses while working on your website. The hardest thing is this business is finding people to talk with who are interested in purchasing a home.

I hope it works out for you.