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A CURRENT Client wants to BUY ANOTHER Rental Home - I'm Advising Him to.....

By
Property Manager with Gibson Management Group, Ltd.

....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!

Posted by

Wallace S. Gibson is a Certified Property Manager with over 50 years of property management experience and expertise.  She maintains a specialized property management business in Central Virginia serving Albemarle, Greene, Fluvanna and Louisa counties  

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Comments(8)

Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good advice . I have seen that the best upgrade to a kitchen is granite counter tops. Renters are willing to pay more if there is granite.

Mar 28, 2012 09:36 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Many renters in our area are Homeowners elsewhere so they need BIG for all of their STUFF!

Mar 28, 2012 09:41 PM
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Bells and whistles aren't always the ticket Wallace, they should listen to your advice.

Mar 28, 2012 09:46 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

I hope he does - a WHOLE unit music/speaker system is of NO VALUE to a family with different musical tastes!

Mar 28, 2012 10:19 PM
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Wallace, 

Great advice.  Yes, music/speaker systems have limited value on the rental market.  Some of the guys love it, but they are not looking to pay more for it!

All the best, Michelle

 

Mar 28, 2012 10:44 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Put the MONEY in the KITCHEN is my MANTRA for owners wanting to fix their current homes to turn them into an investment property

Mar 28, 2012 11:55 PM
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

It is best to listen to Realtor/property manager who knows the market. Get the best bang for the buck.

Mar 29, 2012 04:39 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

The only downside is the first residents are living in a semi-construction zone AND they can walk to Starbucks!

Apr 03, 2012 08:33 PM