Quote:
Originally Posted by Robbb
Of the rental market that is. I'm staying in Richmond on a small block, in that block 4 of the 12 homes are rentals, 2 of which are rented. Today on one of the rental sites there are 49 homes for rent in March. With new rentals coming on the market every day, Ya gotta wonder if home rentals in the Villages are the soon to be crash that everyone is fearing.
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When I bought in Hillsborough, new house, in 2014, there were like 40-50 rentals the first few years. I think I counted 8 this year(in Hillsbourgh). Nothing new that there are a bunch of rentals down south. The funniest thing is that all the new Landlords said they were going to get $6000 a month in high season for 2024 (there is a landlord thread on Facebook). I told them they were all nuts. Raised rents on my return renters by 10% for next year to cover my costs (both houses I have are rented about 11 months a year, almost exclusively repeat renters) Yeah, now they are all dropping rents down to where they should be. There is plenty of demand, it will all even out. I have 2 designers I bought for $245 range and they cashflow nicely (never going to get rich). I have no idea how you make money when you buy one at $450.... with a 7% mortgage. The math does not work. Believe me, a lot of them will sell. Look for deals on Patio villas next year, there will be some running.
The way you make money is the renters help pay the mortgage and expenses, and then the home appreciates so you make most of the money when you sell (or finally retire and move in
). Rentals are an inflation hedge with a very nice tax treatment. Anyone who thinks otherwise in TV is fooling themselves. If high season rents go too high, people will just buy. It is easy math.
Ed