1. It is quite common for college students to be de facto landlords by holding a lease in their name and screening and collecting from a succession of roommates.
2. If you paid 1.4 and it is worth 2.8, you have a savings of about 14k a year in property taxes. $14,000 PER YEAR. $140k+ over ten years!
That only will go up, and is also a bit of stability too. The net present value of that low assessment is about $350,000-400,000. You lose that permanently if sell without transferring it to a new property, which you are allowed to do at a certain age.
I rent out a 5/3 house worth about 1.8 in OB, rent is below market at $5300.
It is certainly a bit more work than a studio condo, but I’ve made like a million in appreciation, that’s the profit source, not the rent yield.
If your house rents for $70k a year, the property manager may take 7k. And for what, to avoid 3-10 hours of easy work a year? Bad deal!
I dealt with two different detached house property managers when I rented in OB/PB two detached houses (2005-2011 time period). In both cases the property managers didn’t come close to justifying their fees.
