....buy NEW. WHAT? WHAT? There are deals out there for LOW priced single family homes. Why would I advise him to BUY a NEW property?
First, in our area, the "DEALS" are in UNdesirable areas; are condo-conversions which do not rent because their HOA fees are too high; or will take way too much CA$H to bring up to a rentable condition.
Second, the timinig of placing a rental unit "in service" is KEY.....starting NOW to look is WAY TOO LATE as our rental season will fade when schools start in August. There is not enough time to find, buy and REhab a property to be READY in 3-4 months.
The unit that I currently manage for him is a townhouse he bought NEW and which he tricked out with electronic bells and whistles which were GREAT for his personal taste when he lived there; however, they have virtually NO value to a renter.
So my suggestion is to FORGET the bells and whistles * upgrade the carpet, put in the kitchen "island" and elect a GAS stove - all DESIRABLE features for a rental property.
LASTLY, NEW townhouse units in our area are being built with garages and 4th bedroons. They are already appraised and the financing is in place - just bring CA$H to closing. These units are NEW so their maintenance and repair costs are very low AND they are in DESIRABLE AREAS * close to employment and GREAT schools.
There is something for renters who get to move into a BRAND NEW UNIT.....they LOVE it!
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