[quote=wanttobuy]This is an interesting point. A friend of mine is using this approach, catering to long term quality tenants and he is doing well, but again he has probably put down a sizable amount in order to achieve positive cash flow. As we all know SFR in a good school district and desirable family oriented neighborhood is NOT cheap. So one more thing to add to the equation is to look into your pocket. How deep it is? . . .[/quote]
wanttobuy, a “good school district” and “desireable family oriented neighborhood” is in the eye of the tenant-beholder. What some Piggs here consider “good” or “acceptable” is not what EVERY tenant considers rent-worthy. Many tenants with families are living within a short walk of other relatives, for child-care and after-school care purposes. They are sending their children to schools which were “good enough” for them to attend. They are living in areas where they feel “at home” and “comfortable” and where they are paying a stable $1400 – $1800 mo for rent for an SFR big enough for their entire families with yards big enough for their pets. There is no need to move if their family should grow by one. This is the essence of the desires of a long-term tenant.
Yes, unless financing with FHA (w/high prepaid and monthly MMI), you will most likely have to have 30% down for a non-owner occupied property, located anywhere.
As a landlord, you must, above all, be realistic and KNOW your target tenant market, inside and out.
There are PLENTY of SFR’s on the market in SD county with asking prices of $175K to $250K which would make great long-term rental investments, IMO.
