I can see how owning homes in the same area could benefit you as an investor. People always look at the houses around them before they decide to rent, and at least this way you have some control over who lives in your neighborhood. People tend to live like their neighbors do, so you can have the oppertunity to set the bar high for your neighborhood.
LOL, maybe you have a strong point here, but you know, everything is open to negotiation. Sure, we just might have a really bad tenant and in that case we will really need the 10% or else our work is not compensated.
If my intention is to live in it and be in close proximity to the other properties that I rent out, then maybe it's a good idea to buy different properties on different streets. It will simply make the management of those properties so much easier. On the other hand, if you intend to eventually sell, I think it's not a good idea as when fluctuations occur, you will have the same value for all of your properties, which is not good, especially when it's not a good time to sell. You basically have 3 properties which are going to be stagnant.
Yes, that's a good idea really, if you are living there you can manage the properties yourself, you don't need to pay anyone to do it. As for them being stagnant I think the location plays a key role here, if it's a good location stagnation will not be a concern.
I've considered this... but I'm thinking that would only come into play if planning to sell at some point. With these rental properties, though, they'd always be rental properties, so... would you still factor that in, Peninha? I'm still chewing on the whole thing. Not an easy decision. I know that if there'd be any plan to sell within... well like 10 years, it would be a different thought pattern, but there's no plan for that. As for managing myself... that's not gonna happen. I'd let the manager take his 10% out of the rent (probably higher rent than I could have gotten myself anyhow) and be very happy with that.
LOL, I see you really hate to manage properties Kate... I think that's a good plan really, buying properties in an area that we know it will value, rent them for 10 years and then selling for a massive profit, seems like a winner to me.
Hehe It's not right for someone to know me so well but yeah, you pretty well nailed it, Gelsemium. It's not just hating to do it, though... our current manager is managing the property that's in another state. There wasn't another choice. He got 10% more for the rent than I thought the house could bring and than we would have asked, and takes 10% manager fees, basically costing us nothing but his Christmas bonus. So... well, now that more properties are in the future, it's very easy for me to want to have someone else fixing roofs and furnaces, spraying for termites, shoveling snow, and making sure tenants aren't destroying the property and then send us the check. Yes, I know that sounds cushy, but if we'd be paying him for managing over and above the higher rent he pulled, I'd probably be singing a different tune.
Yeah, that doesn't sound fascinating, except the part of spraying for termites, I could to that with my Indiana Jones hat. I do agree with you though, if we can pay the 10% and live a better life why should we bother?
It makes watching out for your homes easier to do. You drive by one street and see how the renters are keeping up your homes. I Would personally as I think it would be easier to manage the homes myself. Why not own the neighborhood!
On the surface this looks like a great deal. Owning a lot of properties within your neighborhood is much better than having various properties across town. And from the way you presented it seems like these houses are going for a bargain. I would just make sure that you look into the finer details of this sale and why these houses are going at bargain prices. If everything checks out and it seems like a good deal then I'll definitely go for it and essentially want to own the entire neighborhood. That sounds like a great stretch.
