 Transition to Rural Prop (by Franberry [IL]) Aug 9, 2018 10:51 AM
 Transition to Rural Prop (by J [FL]) Aug 9, 2018 11:04 AM
Transition to Rural Prop (by AllyM [NJ]) Aug 9, 2018 11:38 AM
Transition to Rural Prop (by Deanna [TX]) Aug 9, 2018 11:57 AM
Transition to Rural Prop (by LindaJ [NY]) Aug 9, 2018 12:32 PM
Transition to Rural Prop (by Hammer [TN]) Aug 9, 2018 12:47 PM
Transition to Rural Prop (by Franberry [IL]) Posted on: Aug 9, 2018 10:51 AM
Message:
Curious to know if there is a noticeable difference from renting to rural, small city renters as opposed to urban big city renters? I own multi unit buildings in an Urban area and am contemplating moving to Michigan , more rural area. Would be doing a 1031 and buying a similar size multi unit in a rural/smaller city. Any thoughts to enlighten me if there is a difference in renters? --107.77.xx.xx |
Transition to Rural Prop (by J [FL]) Posted on: Aug 9, 2018 11:04 AM
Message:
I don't about renters. My concern would be being able to find reliable handymen, contractors in a remote area like that. --72.188.xxx.xxx |
Transition to Rural Prop (by AllyM [NJ]) Posted on: Aug 9, 2018 11:38 AM
Message:
They probably only kill varmints. Seriously though, it would be easier to change jobs or get another job in the urban area assuming they work for a living. So there might be less turnover due to job change and late rent. --73.178.xxx.xx |
Transition to Rural Prop (by Deanna [TX]) Posted on: Aug 9, 2018 11:57 AM
Message:
By "rural", I'm hearing a population of 500-5000?
You're likely to get more people on a fixed/limited income-- retirees who can't afford to own, burger flippers, factory workers.
Housing prices reflect the economic stability of an area. So if housing prices are very reasonable, it means it's a highly undesirable area, just like if housing prices are through the roof, it means it's a highly desirable area. Likewise, if housing prices are reliable, everyone who's good with their money is likely to already be a homeowner, which leaves everyone else for the tenant pool-- because there's not a whole lot of population flux.
It's okay to invest in, especially if it's where you happen to be, but the whole point of having those sorts of places is what it can earn you from one month to another, not for you ever being able to sell it (quickly) (easily) (at a great profit), and your rents are less likely to have steep inclines from one year to the next, due to the very limited budgets of that particular tenant pool. --96.46.xxx.xx |
Transition to Rural Prop (by LindaJ [NY]) Posted on: Aug 9, 2018 12:32 PM
Message:
I have more rural "farmhouses" on acres of land. But I am near a decent size city that is where there is a stable government workforce as well as many other companies. I much prefer rural rentals, just because I am a rural person myself.
There are two types of tenants I find that like the rural houses. The more country type with animals, that hunt, fish, and know farming. More "redneck" and republican. Take care of themselves type. The kind of tenant I am looking for.
Then there is the ones that are lured to the country for its peace and quiet and all the stuff they read about in the magazines. BUT they have no clue on how to take care of themselves or what living in a rural area really involves. Like wells that don't pump water when the electric is out. Raccoons, mice, even an occasional bear that comes close to the house and gets into stuff. They end up afraid of someone breaking in. (more like the animals will) Those are the ones I try to avoid.
Again, I am still within driving distance to work in a medium city, so a small town will be different. --108.44.xx.xxx |
Transition to Rural Prop (by Hammer [TN]) Posted on: Aug 9, 2018 12:47 PM
Message:
We moved from busy city to rural.
This is my experience in our areas.
City of 132K 3/2 brick rental in middle class subdivision. High demand Rents $1000/mo (5 yrs ago, now $1500/mo). Good renters with stable jobs and good income. Today's retail price $210K.
Rural. City of 13K 3/2 brick rental in middle class subdivision. Rent $750-800. High demand, tenant pool is murky. Most won't qualify due to income. Most applicants need 2 full time Jobs/income to barely qualify. Todays retail price $115K
My experience is that the city rentals were easier to find qualified renters. They had higher expectations and wanted nicer places for the higher rents. Price to rent ratio was about average (before the boom the past 3 years)
The rural has been easier to find "cheap" houses but since employment is lacking, and an aged population. Getting higher rents is difficult. Most are looking for inexpensive rents.($350-600) $1000/mo seems to be a hard ceiling. Nobody will pay that or above for a rental, they would buy instead. If you do lower income affordable housing, tenants my stay a long time. If you are renting nicer places with top of market rent ($750-900), expect 1-2 years before they buy. --137.119.xxx.xxx |
Reply:
|
|