From: "Sgt. Sausage" 
Newsgroups: misc.invest.real-estate
Subject: Re: Buying rental property...here are the number
Date: Mon, 12 Jan 2004 10:43:44 -0500


 wrote in message news:400253e9.77389830@shawnews...
> why would people rent with such high rents when they can buy and pay
> less with such low interest rates.

They do it all the time around here. Primarily because the
job situation -- not enough stable employment history and
poor credit.

About 3 years ago, we had to relax our credit score
requirements to get new tenants. The one's with
decent credit were able to get loans and were buying
their homes. Starting about that time, banks were
giving loans to *anybody*. The renters simply dried up.
The only people left were those with a less than desirable
credit history.

I'm still worried -- It's not good news to be renting
to folks with lousy credit, but it hasn't burned us
yet. I figure, most people will let all other things slide
(credit cards, loans, student loans, auto loans etc.) and
make every effort to keep a roof over their head -- e.g.
pay the rent.

I've yet to determine if lowering our credit requirements
is a bad thing. It's gained us a ton more potential renters,
but it may some day come with a price as we may get
burned. At least for now, it seams to be working...