What kind of homes can you buy for $100,000 in Bluffton, how much will they rent for, what’s their return on investment, and how do you get good tenants?
Here are the answers to those four questions and some additional information about investing in rental real estate in Bluffton:
- Homes for about $100,000: They are mostly villas or condominiums, with one or two bedrooms and baths. The 2BRs 2BAs rent better and for more money.
In the beginning of July, there were 15 Bluffton homes for sale with two bedrooms and two baths in the $85,000 to $115,000 price range.
They were in the Estate at Westbury, Plantation Point, Reserve at Woodbridge, Villas at Old South and the Gatherings.
- The current rental rates for the above-mentioned homes fall between $900 and $1,200 per month. Exact rent received depends upon location, condition, features, amenities and supply and demand.
In Bluffton, the rental market is very strong, favoring the higher rental range amounts.
- Return on investment: The average return on investment for the above scenario is about 10 percent. It might drop a percent or two below or even rise above 10 percent, based upon the cost of the property, cost of repairs required, monthly operating expenses, and rent received.
- Getting good tenants: This is very important and it starts with having all prospective renters complete a South Carolina approved rental application.
This application asks for a lot of personal information, job information, and telephone numbers of prior landlords and references. It also asks for permission to do a credit report and background check.
Expenses that the tenant is responsible for include water, sewer, electric, telephone, Internet, and cable or dish television and contents insurance.
Most landlords pay for hazard insurance, POA fees, assessments, repairs, and pest control.
If a prospective renter does not want to complete an application or submits one that is incomplete, move on to your other prospects.
When checking rental applications, pay careful attention to the credit report, background check, and what prior landlords and current employers have to say.
Finally, attorneys, accountants, and real estate agents are great resources for learning more about investing in real estate.
Larry Stoller is a real estate consultant and advertising executive who loves living in Bluffton and helping real estate agents and sellers get homes sold.