IT’S NOT YOUR MANAGEMENT – IT’S YOUR BUILDING BEN LEYBOVICH
If you, a responsible and well put together person wouldn’t want to live in a
dwelling for one reason or another, why should any other responsible and well
put together person want to?
hours in the car each way; but we don’t want to be too close! Are you seeing this location in your mind? This is
what most of us want; these are the things make our hearts sing. This is what life is about – our own personal
“Heaven on Earth”. If you are a landlord, it would be nice to own property there…
Price Point
Realistically, though, there may be one little problem with that. As you were reading the above description of the
most romantic location you’ve ever imagined, your mind likely wondered into the most expensive part of your
city, didn’t it? Let me ask you – does it make sense to own income producing property there? In other words, if
the median annual income in your town is $34,000, does it make good sense to own property which needs to be
rented for $1,400/month in order to make it a viable investment?
Even though lots of people will want what you’ve got, only a few would be able to afford it. Personally, therefore,
I prefer to find a balance between the principals of “Heaven on Earth”, that which most people want, and
affordability, that which the largest cross-section of population can afford. Where are the locations in your town
which possess qualities of romance, but where you can afford to buy property and where it makes economic
sense to update it nicely and still bring units to the marketplace a price point that people can afford? Those are
the locations where we want to hold long-term investments! Those are the locations that will attract people who
will pay on time and will not trash your property; who will think of it as home and not just another rental; who will
help their neighbors clear the snow in the winter and plant flowers in the spring.
In my own portfolio, all of which is within a 30-mile
radius from Lima, Ohio, this means that I deal in
the $550 to $800 monthly rents. My units do not
necessarily attract executives in-transit who prefer
all of the bells and whistles, and who are willing to
pay $1,200/month. But my units do attract people
that want to be in a well-kept unit which does not
necessarily possess all of the bling-bling, but is
clean, convenient, comfortable, and functions well.