Help With Rental House

#1

MphsBlues

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#1
I currently do not have one for rent, but throwing around the idea of renting one of our houses. The one I am thinking about renting out is a 4br/3.5 ba house in Germantown. If you don't know, Germantown is to Memphis what, say, Farragut is to Knoxville. It's the nice area of town. Do any of you have experience renting a nicer place like this? I've heard horror stories about renting, so I'm very hesitant.
 
#2
#2
I will never rent a house again lol (I'm one of the horror stories)

Good luck
 
#3
#3
I will never rent a house again lol (I'm one of the horror stories)

Good luck

Yikes! It's hard to just let it sit there and have to keep paying the property taxes each year. Perhaps I should just sell it.. Thanks :hi:
 
#7
#7
I currently do not have one for rent, but throwing around the idea of renting one of our houses. The one I am thinking about renting out is a 4br/3.5 ba house in Germantown. If you don't know, Germantown is to Memphis what, say, Farragut is to Knoxville. It's the nice area of town. Do any of you have experience renting a nicer place like this? I've heard horror stories about renting, so I'm very hesitant.
I have recently sold 6 houses that were rentals for 25-30 years. I would never rent a house to someone again. Sometimes you get lucky with a good tenant, sometimes you get screwed. You have to ask yourself................do I feel lucky?
 
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#8
#8
So basically there is money to be made in vacation rentals but certainly not long term rentals? Is that the general consensus here?
 
#9
#9
So basically there is money to be made in vacation rentals but certainly not long term rentals? Is that the general consensus here?
 
#10
#10
So basically there is money to be made in vacation rentals but certainly not long term rentals? Is that the general consensus here?
I am not sure about vacation rentals, but I would assume that if you have a high dollar place on the ocean, and it stays rented a lot, that you could make money. I have noticed that the high dollar places stay rented more than the cheap ones. They probably are less likely to get destroyed if it is in a family location, not someplace where spring breakers go.

There is some money to be made in long term rentals, but it mostly comes through depreciation on your taxes, and long term appreciation of property when time to sell out.
 
#11
#11
I currently do not have one for rent, but throwing around the idea of renting one of our houses. The one I am thinking about renting out is a 4br/3.5 ba house in Germantown. If you don't know, Germantown is to Memphis what, say, Farragut is to Knoxville. It's the nice area of town. Do any of you have experience renting a nicer place like this? I've heard horror stories about renting, so I'm very hesitant.

I rent several homes. Many single family. How can I help you?
 
#12
#12
Sell the nice house and buy a condo on the beach, or 4 or 5 crack houses and put them on Section 8 and use a management company. Do not rent nice house. One exception - in 'Nooga, you can get lucky and get a 3 year VW renter from Europe. VW wires the rent monthly and they pay at the top of the market rate. Not sure that scenario exists in Mempho.
 
#13
#13
So basically there is money to be made in vacation rentals but certainly not long term rentals? Is that the general consensus here?
I always said that it took 3 months of the collected rent to pay for taxes and insurance, 3 months to pay for what they tear up, 3 months for long term upkeep and repairs, and it may sit empty for 3 months while you get it fixed back up and find a new tenant. I feel pretty sure that in an affluent area, (I'm not in one) it is better. I would hate to owe money on a house, and expect to do better than stay afloat in my town.
 
#14
#14
I rent several homes. Many single family. How can I help you?
Your success depends on your property, location, and tenant pool. I live in an area where virtually anyone with any money owns their property. It is an area with little professional employment, and few transients moving in and out. Your mileage may vary.
 
#15
#15
Your success depends on your property, location, and tenant pool. I live in an area where virtually anyone with any money owns their property. It is an area with little professional employment, and few transients moving in and out. Your mileage may vary.

My success is linked to rigorous tenant screening and eviction at the first sign of problem. Turnover is less than one week unless unusual circumstances.
 
#16
#16
My father owned apartments and small houses that he rented out. The thing he told me he did to screen out dead beats was to charge a small application fee of like $25 and tell the prospective renters it was for a credit and reference check. If they didn't bite they were dead beats, the ones that paid were usually ok.
 
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#17
#17
My success is linked to rigorous tenant screening and eviction at the first sign of problem. Turnover is less than one week unless unusual circumstances.
Yes, but you apparently have some decent tenants from which to choose. My little town consists of haves and have nots. The haves are old money and own their own houses. The have nots can't afford much rent. My town has empty store fronts, except for fast food, pay day loans, pawn shops, convenience stores, consignment shops, auto parts, thrift stores, etc. We are down to 2 new car dealers, where we once had 7.

Our one modern "shopping center" had 4 anchor stores on the corners, We lost J.C. Penney from one corner and 3 other bigger stores have been in one of the other corners in 12 years. K-Mart is one of the remaining on another corner, and I wouldn't bet on it long term. Belk is on another.

One nice little new (6 or 7 years) strip center with 6 storefronts has 3 empties.
 
#18
#18
Yes, but you apparently have some decent tenants from which to choose. My little town consists of haves and have nots. The haves are old money and own their own houses. The have nots can't afford much rent. My town has empty store fronts, except for fast food, pay day loans, pawn shops, convenience stores, consignment shops, auto parts, thrift stores, etc. We are down to 2 new car dealers, where we once had 7.

Our one modern "shopping center" had 4 anchor stores on the corners, We lost J.C. Penney from one corner and 3 other bigger stores have been in one of the other corners in 12 years. K-Mart is one of the remaining on another corner, and I wouldn't bet on it long term. Belk is on another.

One nice little new (6 or 7 years) strip center with 6 storefronts has 3 empties.

Ouch. Your town is dying. We have some of what you describe but not nearly as severe. Did you see the writing on the wall or did it happen "overnight"?
 
#19
#19
Ouch. Your town is dying. We have some of what you describe but not nearly as severe. Did you see the writing on the wall or did it happen "overnight"?
It is dying, and that is why I sold most everything, and bought a Summer house in NC mountains, and am looking for a Winter house in Fl. It happened over a period of years. We were a farming community until the 1950's, added a lot of manufacturing, which later moved to Mexico and China.

We had a large local bank failure in which the bank stock traded privately, went public, expanded, then lost a ton during the housing crisis, stopped paying dividends, and the stock dropped from $35 per share to less than $2. It was bought out, and many lost their life savings.

Many people worked in the factories, then farmed part time, and grew tobacco. We had the largest burley tobacco market in the country at one time. It is gone. Many millions left the community when smoking fell out of favor. We had hundreds of small dairy farmers who were run out of business by conglomerates. It was too expensive to pick up their milk in that many different locations. They could not afford to sell their milk for the price offered.

We had 3,500 people working at the Magnavox, later Phillips Electronics factory, that moved to Mexico to try to compete with Chinese TV's dumped on the market. There were other factories that supplied Magnavox , plus the auto industry, now all gone.

Greene Valley Developmental Center employed over 1,000 people at one time. It has closed and the remaining residents are in homes built for the developmentally disabled, and privately managed, all over the state. We have a tremendous opioid and meth problem here. Many can't pass a drug test to take a job.
 
#20
#20
I have recently sold 6 houses that were rentals for 25-30 years. I would never rent a house to someone again. Sometimes you get lucky with a good tenant, sometimes you get screwed. You have to ask yourself................do I feel lucky?

Well..... were ya?....Punk!
 
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#21
#21
It is dying, and that is why I sold most everything, and bought a Summer house in NC mountains, and am looking for a Winter house in Fl. It happened over a period of years. We were a farming community until the 1950's, added a lot of manufacturing, which later moved to Mexico and China.

We had a large local bank failure in which the bank stock traded privately, went public, expanded, then lost a ton during the housing crisis, stopped paying dividends, and the stock dropped from $35 per share to less than $2. It was bought out, and many lost their life savings.

Many people worked in the factories, then farmed part time, and grew tobacco. We had the largest burley tobacco market in the country at one time. It is gone. Many millions left the community when smoking fell out of favor. We had hundreds of small dairy farmers who were run out of business by conglomerates. It was too expensive to pick up their milk in that many different locations. They could not afford to sell their milk for the price offered.

We had 3,500 people working at the Magnavox, later Phillips Electronics factory, that moved to Mexico to try to compete with Chinese TV's dumped on the market. There were other factories that supplied Magnavox , plus the auto industry, now all gone.

Greene Valley Developmental Center employed over 1,000 people at one time. It has closed and the remaining residents are in homes built for the developmentally disabled, and privately managed, all over the state. We have a tremendous opioid and meth problem here. Many can't pass a drug test to take a job.

You ever cruise by the Mile High Burger after shopping at Intimate Treasures?
 
#22
#22
It is dying, and that is why I sold most everything, and bought a Summer house in NC mountains, and am looking for a Winter house in Fl. It happened over a period of years. We were a farming community until the 1950's, added a lot of manufacturing, which later moved to Mexico and China.

We had a large local bank failure in which the bank stock traded privately, went public, expanded, then lost a ton during the housing crisis, stopped paying dividends, and the stock dropped from $35 per share to less than $2. It was bought out, and many lost their life savings.

Many people worked in the factories, then farmed part time, and grew tobacco. We had the largest burley tobacco market in the country at one time. It is gone. Many millions left the community when smoking fell out of favor. We had hundreds of small dairy farmers who were run out of business by conglomerates. It was too expensive to pick up their milk in that many different locations. They could not afford to sell their milk for the price offered.

We had 3,500 people working at the Magnavox, later Phillips Electronics factory, that moved to Mexico to try to compete with Chinese TV's dumped on the market. There were other factories that supplied Magnavox , plus the auto industry, now all gone.

Greene Valley Developmental Center employed over 1,000 people at one time. It has closed and the remaining residents are in homes built for the developmentally disabled, and privately managed, all over the state. We have a tremendous opioid and meth problem here. Many can't pass a drug test to take a job.

A perfect storm of circumstances to kill a community. Might have been able to survive with one or two. But that's just too many bad things to weather.

Here in Mid Tenn, there seems to be nothing but growth. We had a couple of rentals previously. When the houssing bubble burst, we cashed in all liquid assets and went all in on real estate. Almost put us in bankruptcy because of the lethargic recovery. But things are booming for us now. 30-40% increase in rents with 100% occupancy. I have some undeveloped land that is mixed use. Already zoned for Condos and commercial. I cant get it developed. Too big for some developers. Not big enough for the others. I think my lender is game. If anybody knows a developer in the southern middle Tennessee area, please let me know.
 
#25
#25
I rent several homes. Many single family. How can I help you?

Thanks, McDad. Do you have any in higher end locations like mine? I guess I'm trying to be optimistic about the possibility that if they rent for 1,700.00 a month, are they more likely not to screw you?
 

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