I manage my own properties, except one in Oregon. I started out as a Computer Engineer and first buying real estate when I was in college. A few years ago I decided to get my Broker’s license and this year I plan to open a brokerage here in UTC that offers both Sales and Property Management.
So the typical clientele has been people in transition. I had a guy from Seattle move down because his company imports foods from Mexico and they bought a warehouse here in SD. He wanted to be closer to operations, and his daughter lives here. He wasn’t prepared to move all his stuff down since he was wrapping up a divorce, he stayed with me for 15 months.
Another couple stayed with me for 7 months, they work from home 6 months of the year, then travel. They literally just took off to go travel Europe. He said I might here from him again in six months. They sold all their furnishings when they decided on this lifestyle a few years back.
We aim for longer term, but obviously we want 100% occupancy so we’ll accept shorter terms.
Outside of the one furnished rental in UTC, I only do 12-month leases. That unit was a score, I already owned another unit in that complex so I was very familiar with it when that unit came up, I jumped on it. I also know that the HOA dues which are astoundingly high at $375/mon will come down to $200/month in about 2 years, so there will be a nice bump come that time frame (HOA was poorly managed in years past so we’re having to rebuild reserves).
The 3.99% was from a Credit Union in Ohio I found by shopping on the Internet. The timing was just perfect when it came to rock-bottom rates, as I had been searching for months for a property to pick up. I may have paid points, I can’t recall. I know I would have asked about the points and run the numbers to see if it was worth it, I’m a buy and hold investor.
Rates have gone up from the exceptional lows, but they are still LOW historically speaking. It wasn’t until 2009 that we ever dropped below 5%, EVER!
