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Old 01-10-2009, 08:09 PM   #21
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Hard to imagine homes that cheap. $10k? Several of the homes in my immediate area have a larger annual property tax bill.
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Old 01-11-2009, 07:43 AM   #22
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Brewer-

Isn't it though? i'm going to swing by those 2 again today and snap some pics. i also have some pics of my $12k home online..... let me dig em up...


thefed17/delos - Photobucket - Video and Image Hosting


Not a lot of before pics, but it was DISGUSTING
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Old 01-12-2009, 09:06 AM   #23
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thefed,

Thanx for keeping us posted. Sounds exciting!

FWIW I purchased half a dozen homes below 20k and another half dozen below 40k (in the 90's) so I know what you doing is "real" ... and your timing could be better (but you'll have to carry them for awhile).

Stay the Course!
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Old 01-12-2009, 12:40 PM   #24
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thefed,

Have you had any headaches when tenants moved out? As in, having to replace the carpet, repaint the walls, repair or replace appliances and fixtures? That was the norm when I was helping my FIL with his "slumlord" properties like this (ie - $20k-30k and they rent for $500-600 a month). He also had 30-50% vacancies in general, with frequent unannounced move outs. Just wondering if things are different in your part of the country.
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Old 01-12-2009, 06:07 PM   #25
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yes, i have to do some repairs...but im handy so the security deposit still ends up covering it all plus some...crossing my fingers though!


vancancy is about 20%, but thats because im very picky when they move out... I try to find the 'right' one instead of 'any' one.
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Old 01-13-2009, 08:31 AM   #26
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20% !!

Either you're putting shortterm people (i.e. wrong people) or the rent is too high. Cutting the rent will bring a larger crop of the "right " people. Also note, being a hard-@ss will drive good people out.

FWIW, I run at 5% vacancy. Only exception would be when I am holding a vacancy to sell the unit.
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Old 01-13-2009, 03:53 PM   #27
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20% !!

Either you're putting shortterm people (i.e. wrong people) or the rent is too high. Cutting the rent will bring a larger crop of the "right " people. Also note, being a hard-@ss will drive good people out.

FWIW, I run at 5% vacancy. Only exception would be when I am holding a vacancy to sell the unit.
20% equates to 2 months/year.....roughly

I have only had them for 2 yrs or so let me figure this out exactly...

Rental A) sat for 1 month after rehab. Evicted after 6 months. Sat for 5 weeks for cleaning and finding new tenant. Moved after 8 months. Sat for 5 weeks again. Rented since...roughly 5 months. So it was empty for about 14 weeks....or 3.5. months....so it was rented 19/22.5months = 15% vacancy

Rental B) Rented immediately after rehab...tenant stayed 18 months. Rehabbed and sat for 6 weeks. Rented for 8 months since....empty 1.5/25.5 months. Vacancy = 6%


So i guess it's a bit lower, but once I've owned them for a longer period and can find the right people, I'm sure vacancy will drop dramatically.


I'm happy having strict rental guidelines. Although I struck out on the first 2 people at rental A, I never really lost $$ because i kept security deposits and didnt incur much cost- they left amicably and agreed to me keeping their $$ in exchange for not pursuing the balance
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