Share some experience

来源: sunpriest 于 2008-07-17 16:18:46 [] [旧帖] [给我悄悄话] 阅读数 : (1609 bytes)
本帖于 2008-07-18 17:09:45 时间, 由普通用户 表情符号 编辑

Sometimes, it is not too good to have "good tenants". Again, this is in Canada: still stable market this year.
Last summer, I purchased a property inside university gate. The location is somewhere I am longing for and can never find a right priced one to get in. Fortunately the lady seems to be tired of students rental housing and want to get out. She purchased in 1999 for $162K and sold to me 2007 for $262K. The market price should be around $285-$290. The house was pre-rent to a group of 4 girls for $1500.
In transaction I think it was a good deal because that $1500 can ease my cash flow. They are clean and beautiful white girls. However,this season I put the house in market for next school year students. Just one week 17 groups of students come and want the place. It is easily rent out for $2400+utility. After that, whatever I do I just can not let current tenants leave even I am willing to pay $1000 to reinburse there moving. It is sad because they have 2 more years to stay before graduate, that means I will lose $20K rental income. Paraleagal adviced me not to do anything more because transfer house into owner occupied and stay for at least half a year will break my cashflow immediately, I admit that.
This is the short side of residence rental investment, you can not increase rent for more than 2% every year. If you were stuck with old low payment tenants, you have to bear it. Student housing you could even imagine they will graduate finally, but families they may never move out any more if they pay you extreme low rent on time every month.

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• 回复：Share some experience -sunpriest- ♂ 给 sunpriest 发送悄悄话 (226 bytes) () 07/17/2008 postreply 16:16:56

• most student rental properties have a yearly lease -yanon- ♂ 给 yanon 发送悄悄话 yanon 的博客首页 (75 bytes) () 07/17/2008 postreply 16:43:38

• 回复：most student rental properties have a yearly lease -sunpriest- ♂ 给 sunpriest 发送悄悄话 (589 bytes) () 07/17/2008 postreply 16:51:46

• That is a nice problem to have. -cultuslake- ♂ 给 cultuslake 发送悄悄话 cultuslake 的博客首页 (0 bytes) () 07/17/2008 postreply 16:51:28

• This is a middle size city of Ontario -sunpriest- ♂ 给 sunpriest 发送悄悄话 (312 bytes) () 07/17/2008 postreply 16:56:37

• how long is their lease? 2% limit on rent increase sucks -jy101- ♂ 给 jy101 发送悄悄话 (0 bytes) () 07/17/2008 postreply 16:56:46

• 回复：how long is their lease? 2% limit on rent increase sucks -sunpriest- ♂ 给 sunpriest 发送悄悄话 (462 bytes) () 07/17/2008 postreply 17:00:18

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