【Question】I’m intrigued by the prospect of purchasing a rental house for the Japanese community. A couple of questions come to mind. 1) Does the owner need to fully furnish the house, or does the Japanese family ship their own furniture?; 2) Who pays utilities?; 3) Typically how much down on the purchase is the owner required to have?; and 4) Are you often able to find a new tenant when the 3-4 year agreement runs out?
I’m not sure we have the capital to do this right way, but maybe in a few months. You’re definitely piquing my interest. I never wanted to be a landlord to college kids, but this is different. ;)
【Answer】Thank you for your inquiry.
1) Does the owner need to fully furnish the house, or does the Japanese family ship their own furniture?
- They ship and/or purchase furniture locally. So it does not have to be furnished by a landlord.
2) Who pays utilities?
- Tenants do. If you include lawn mowing, some tenants are willing to pay more.
3) Typically how much down on the purchase is the owner required to have?
- In order for you to obtain a conventional loan, lenders typically ask for 20% down. Some banks offer portfolio loans and the rules differ. If you are interested, please contact Brian Hitchcock at the First Bexley Bank for their products.
4) Are you often able to find a new tenant when the 3-4 year agreement runs out?
- Yes. There is currently shortage of lease houses for the Japanese community. Therefore, I show the potential tenants houses on sale to turn them into leased houses. As long as you keep updating the property, you will find a tenant without a problem.