Understand Your Area Series: Bigger Properties Are Not Always Better?
Founder/Managing Partner Lamar Hunt, Jr. warns, “Your target area will have some large homes. These homes cost more to purchase and to rehab. While you may see visions of huge rents, the reality is a bit shocking.” The shock occurs in several areas. First, with a high rent, many potential renters will ask themselves, “Why don’t we just buy instead?” Next, even if you can get high rents, the vacancies are a disaster because the losses are bigger. Next, the folks that can afford to rent at the higher numbers usually have decent credit and will move out leaving it vacant. “Again, as I said, with high rent properties, vacancies are a killer. Plus, you will have to pay more to get them leased, insure them and pay for the utilities while it is on the market. Think about it. Bigger is not always better!” For more tips from Lamar Hunt, Jr., see the blog athttp://lorettoproperties.com/ or call 913-236-2902 if you have a home to sell.