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Old 05-04-2006, 03:39 AM
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Default who rents single family homes?

who are the folks that rent single family homes in nice areas of your city? unless your market is way out of wack, why would they not buy instead of rent if the amt is the same? good reasons i can think of:

-just moved to the area
-waiting for the bubble to pop

that is about it. please enlighten me as i currently only think rentals in poor neighborhoods make sense.
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Old 08-21-2006, 06:28 AM
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There are lots of people who rent higher end homes. I am not sure exactly what type of homes you are talking about, but it's certainly not true that only rentals in poor neighborhoods make sense. The poorer the neighborhood, the more likely you are to have tenants that don't care about the property enough to treat it with respect, and you'll have a serious revolving door of low quality tenants.

Many people rent higher end homes because they do not expect to be in the area long enough to justify buying. Some don't want the responsibilities (maintenance, etc) of homeownership. Some are on short-term employer assignments. Some, as you mentioned, are new to the area and want to rent before buying so they are sure they get what they want.

And sadly, some people rent higher-end homes because despite having a substantial income, their credit is very bad and they just can't buy a home.

We have mostly duplexes, but one SFH. The SFH is rented to a married couple and one of their parents. Some people who looked at it, but did not end up renting it, were a single lady with two children, one of whom was married. The 4 of them intended to live there. Sometimes, people who have situations like that prefer to rent until the situation changes and they go their separate ways to owned homes.
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Old 09-04-2006, 03:54 PM
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I'm personally not the biggest fan of the SFR as a rental. Typically, just like you are indicating, people are renting because their rent payment is lower than a housing payment.

That gap has to be made up by the owner...

They were/are great as appreciative plays... but I just can't get by their lack of cash flow...
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Old 09-04-2006, 06:56 PM
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I will admit that I prefer duplexes or bigger. We have only one SFH and so far it is working out fine, but duplexes are our niche, definitely. I find that the greater the number of units, in general the better the cashflow. Of course, the reverse is generally that the fewer the number of units, the better the appreciation.
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Old 09-04-2006, 07:20 PM
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People rent SFH because their credit is bad and they can't purchase a house of their own. Or perhaps they just don't want the hassle of all the maintanence. Or maybe they are in town on business for several months or a year and they just need something temporary.
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