real estate observers: what is the short term (3 to 5 years) future for rentals?

[rnch]

given the continuing colapse of wall street, housing prices plumeting, the economy tanking into a (perhaps) major recession, consumer confidence levels shaky.......and so on....what do you think is the future for low to moderate rental houses?

my purchase offer on a low to moderate shotgun rental unit expires on monday at 9am....because of some past owner problems i could not close yesterday as planned.

i am wondering if all the issues i mentioned in the first paragraph are an indicator of a good rental market (for rental property owners) and i should go ahead with this purchase.... or should i walk away from this investment??

your thoughts and opinions, pls!

 

[beach_bum_dude]

I've wondered the same thing as the market here in Jackson is no better than N.O. I see many bargains, but on the other hand I see many vacant bargains. I talked to an agent that told me not to buy right now, but who died and made him boss????

 

[PICK3]

New Orleans Real Estate picture post Katrina is different than most of the U.S.

 

[goin on 4T]

Vaction rentals are tough due to cash flow fluctuations!
If the rental cash flows + than it is an investment. If it does not cash flow positive, then guess what? It's a liability!!!
Don't kid yourself either, this includes legal, RE taxes, repair & maintanance, insurance and other related business expenses. If you can cover those with the rent it is a good deal!

 

[pin]

I belive the rental market will always be strong. There will always be peeps who can't buy homes, and many peeps could but do not want too. There are alot of benefits of renting vs owning for some people. Everyone needs shelter.

If we do slide into a depression, the rental market with only get stronger. My family is currently developing a rental property. 6 small 1 bed 1 bath units.

 

[pin]

Vaction rentals are tough due to cash flow fluctuations!
If the rental cash flows + than it is an investment. If it does not cash flow positive, then guess what? It's a liability!!!
Don't kid yourself either, this includes legal, RE taxes, repair & maintanance, insurance and other related business expenses. If you can cover those with the rent it is a good deal!

Very good points. If you can perform maintnance yourself its more cost effective than contracting out. Be wary of investing in older properties.

 

[rnch]

this potential cash cow is an 1880's shotgun double, located in one of new orleans' protected, high and dry, no flooding (so far!) historic neighborhoods, with all the charming, eye catching victorian gingerbread trim still there and intact.

the last owner bought this house (and 4 others!) immediately post-k (post-katrina, fall of 2005), paying flood induced hysteria pricing for it, then renovated it (wiring, plumbing, bathrooms, kitchens, sheet vinyl (yuk!) flooring, insulation, interior and exterior paint. before he could move in/rent it out he lost this property and 3 others to the bank.

i am purchasing it from the repo bank holding it for about 15% of what the last owner had invested in it...rental income should be 4-5 times what the payments for the small mortgage, insurance and property taxes will be..... IF ... it both sides are kept rented.


decisions, decisions.............

 

[PICK3]

Are the driveways narrow?

Do the structures have easy rear entry?

 

[rnch]

....Do the structures have easy rear entry?

not as easy as yours is, you Biatch Bottom!

 

[PICK3]

Does access/egress discussions always have to be about the with you?