COMMENT OF THE DAY: THE SAME BOAT “. . . When talking to people looking for stuff in Montrose, this is what I hear: 1) Nothing available 2) Over priced for what you get 3) By the time you try to take it, someone else already has 4) What you do get will have bad electric, bad roof, bad pipes, sketchy tenants, etc. 5) Was built in the 60′s most likely. Doesn’t have it’s cert of occupancy, no water pressure, low insulation, old windows, etc. Then I like to joke that this is what I hear from people trying to BUY apartments in Montrose. Point being, the challenges you face as a renter are the challenges you face as an investor. And the solutions are often the same: Network with owners, jump on something good if you see it, communicate with the property manager showing if you don’t like the place (this is big), look every day. . . .” [Cody, commenting on Comment of the Day: What’s the Thought Process?]
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I bought my 4plex on W Gray in 1998. Back then the one bedrooms rented for $500/mo (window units).
Today those units rent for $1145/mo (with central air).
5 to 10% per annum appreciation is not uncommon in Montrose because supply almost always exceeds demand. My average vacancy at that property has been less than 3% and my turnover very very low.
So, on the investor side, even if it just breaks even today–or even bleeds a little cashflow–if you manage it right and your outlook is long term, eventually the market will come to you. And you’ll probably pick up a point or two on your net returns from the lower vacancy and lower turnover (vs. some other areas inside the loop where you can buy cheaper units).
http://www.medusaproperties.com/details.php?id=9
On the rental side, we only do “open house” type showings anymore… and it is not unusual to have 15 or 20 people show up to those showings.
The first qualified applicant who hands us a completed application, app fee, and deposit usually gets that apartment.
So, that’s what you need to be prepared to do as a renter: get their early / first, have your paperwork ready, and be prepared to write a check on the spot if the apartment / house meets your needs.
He who hesitates is lost.
Jared M,
I have some close friends with 4plexes in Montrose and I’m hearing the same story.
They don’t list their units are even put them in the Green Sheets. All they do is put a sign that says “For Rent, Call xxx-xxx-xxxx”
Usually within a day of the sign going up the apartment is rented.
The reality in Montrose is that the market is extremely hot.
Also, Jared, I think you meant DEMAND always exceeds SUPPLY.
kjb434,
I think he meant “Demand at any given price is consistently increasing faster than Supply”. That is why rents go up. If quantity demanded is always greater than quantity supplied, the rents could/should be going up faster.
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Demand-the relationship between quantity demanded and price
Supply-the relationship between quantity supplied and price
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Sorry to be pedantic, but I am currently prepping for my classes.
We just toss an ad on craigslist from time to time and get swamped. We started asking people apply in advance to intentionally lower the amount of people that come by (as some people, for legit reasons, won’t apply in advance. Though we don’t charge unless their approved and won’t process/charge an app after it’s taken).
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It’s almost impossible to have sub 100% occupancy in Montrose unless you try hard to do so.
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Jared, I like the ‘open house’ idea but we normally have the units rented before the other people have left and I don’t like the idea of having tons of people in an occupied unit. I assume you have the same issue; how do you work around it? If we get to the point where a unit is sitting empty (that would scare me) then I think that would be the way to go. Put a sign in the living room that says “If you like it, have your money and app ready, give me a call”.
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As an aside: Thank god for property managers. I can’t stand showing units anymore. You say the same thing over and over. I’ve tried to setup my property manager with tools and suggestions on how to avoid some of the stuff I went through in the beginning.
Jared, can you please rescue the three or four properties immediately east of your West Gray property? Such great brick four-plexes that are rotting away.
Yo dawg. I heard you like comment of the day, so we took the comment of the day from the thread for the other comment of the day, so you can talk about talking about what you talked about.
Limestone: I think I know which ones you’re talking about. We looked at them. The city is already all over those places. Whoever buys those is in for a prius patrol nightmare.
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Jared does some good work (looking at his site) but I’m not sure if he wants to deal with a city fight. It’s not fun.
I’ve been trying to buy those units next to me for a decade. But the guy who owns them is a moron. He literally hasn’t lifted a finger to maintain those properties since he inherited them from his father–and he’s asking $1,000,000 for the two run down, falling apart buildings. It’s a joke. But, it’s also a free country (well, not really, but close)… so, if he wants to ask $1,000,000 he is certainly free to do so… and to keep them for the rest of his natural life. :)