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Independent property owners continue to see the value in owning AND managing their rental.
In May we saw that 31% of the rental properties were listed by the property owners themselves. Why would someone choose to manage their own property?
Let’s say you bought an investment property in the 83646 zip code (Meridian) in the last 60 days. Based on the MLS, the median sales price for a typical single-family home was $486,495.
If you put 20% down on a 30-year loan at 3% your monthly payment after escrow is about $1,900 / month. You can rent that property for around $2,400 / month. That gives you a cash flow of $500 per month.
But what if you use a property management company?
Most companies are charging from 7%-10% of the monthly rent. On the low end, that’s about $170 a month to the management company, leaving you with $330. Over the course of a year, that’s about $2,000 out of your pocket.
Is it worth it?
The rest of the story
Eagle, Idaho
Eagle, Idaho (83616) got back to its old self. After April’s drop in the median rental price (click here for that report) the town of nearly 30,000 bounced up 10% in May. It again sits atop the list of most expensive rentals.
Meridian, Idaho
Meridian, Idaho (83642 and 83646) also saw a jump in rent but that went along with an explosion of new inventory to hit the market (last month was low as seen here). The increase in asking price makes sense as April inventory was low. We’ll see what an increase in the May inventory does to June’s asking price.
Boise, Idaho
Within Boise, Idaho the 83703 zip code fetched the highest asking price per square foot, up to a huge $1.75/sf.
Other graphs and images about Treasure Valley, Idaho that are interesting
Heat map of properties listed in May 2021
The Best MLS listings
Looking for potential investments? Here is a property in Nampa, Idaho listed at under $400,000 and will net you around a 5% cap rate. It does back up to a fairly busy street. It was listed on June 10, 2021 so it made it through the weekend without an accepted offer, something that does not happen very often.
To take a look, CLICK HERE.
Information deemed reliable but not guaranteed. Remember, I’m not a financial advisor or lawyer. Just a real estate agent that loves numbers!
Coming in July, we will round out all the zip codes in Ada and Canyon County, giving a complete look at the Treasure Valley.
What’s missing?
My goal is to keep improving these reports every month. Let me know what you would like to see in future reports.
Last month’s report
Curious about the previous month? Click here.
