Rental Property SH #1 is still undergoing rehab and it looks like we aren’t going to make our schedule of securing a tenant by October 01. As it turns out, we didn’t purchase enough laminate and had to rush order a few more boxes… sigh. This delay is probably going to push out completion of the renovation until the middle of next week… Although we will still attempt to do showings from now until then, sadly, it seems like most prospective tenants don’t want to sign a lease unless the property is in COMPLETE rent-ready condition.
C’mon folks, the laminate is 80% installed… Please use your imagination and fill in the blanks on what the finished product will look like! 😉
But that’s just the way it goes when you’re trying to land top-dollar rent… The tenant pool we are choosing from is cash rich, so these folks have every right to be extra picky. There’s also a ton of competition out there as well, which doesn’t help our cause.
So, live and learn. Next time around, I’ll make sure to have the property fully turnkey ready before hosting any open houses. The unit has to POP so that we can HOOK a tenant and make a lasting impression that sticks for good in their mind.
In other news, Rental Property SH #2 (which actually IS in turnkey condition), secured a 1 year lease today! That’s right, our second property (which just closed last week) will be out the gates running before SH #1, which closed in August. Our first mortgage payment for SH #2 isn’t due until November 01, but we will have the place rented out beginning October 01. SWEET!
Rent is set at $3,100/month for 1 year.
Here are what the cash flow numbers are projected to look like (minus reserves) for SH #2:
The low 3.75% interest rate is due to the 7/1 ARM we have on this property. Again, these Bay Area side hustle deals are purely appreciation plays into the future. Any cash flow we generate in the short-term is just icing on the cake! 🙂