Advice on a home without a backyard

[tonyla]

Was wondering what other investor`s point of view of a small single family home that does not have a backyard. Is this something is a minor issue? Large issue? Deal breaker?

There is an ability to create a private outdoor space in the front yard area as the front yard is pretty large.

The property is in a downtown location and that`s why space is a little tight.

 

[markl]

Who is your tenant profile? Are they looking to have that back yard space? Have you looked at other single family home rentals in the area what do they offer? Can you get your price without it?

I know people who happily live with out a back yard for the convenience of being in the right area. You just have to make sure you are working towards your target renters.

Regards,

 

[invst4profit]

How will the situation effect the rent for the area. Is it a cash flow property. Based on what I know of Toronto I would guess cash flow may be non existent. IF that is the case this could indeed be the deal breaker as resale may be difficult.

 

[tonyla]

Sorry I should have clarified that this is in Hamilton not downtown Toronto. Not in the downtown core but just west of it.

@markl
Very good questions. Finding a comparable rental property is something that is difficult. Most rental homes in the area have a backyard. Target tenant profile would be young couple or a family. The rents would be affected by not having a backyard and purchase price would have to reflect that. I was wondering if anyone else has experience with homes properties without a backyard. Did it increase vacancies a lot? Was it hard to resell after the fact?
I`m starting to see that it is only worth it if I get a very good price on the property.

@invest4profit
Sorry I should have said that property was in Hamilton not Toronto. The goal for the property is definitely for it to cashflow.

 

[Thomas Beyer]

QUOTE (tonyla @ Jun 6 2010, 10:41 PM) Was wondering what other investor`s point of view of a small single family home that does not have a backyard. Is this something is a minor issue? Large issue? Deal breaker?

There is an ability to create a private outdoor space in the front yard area as the front yard is pretty large.

The property is in a downtown location and that`s why space is a little tight.
It`s not ideal .. but then the price is a reflection of it !

Any house has features or deficiencies .. and your job as an expert is to assess its positive or negative value.

Of course a house with a 10,000 sq ft yard is worth more than a similar one with 2,200 sq ft only .. but what is a better investment if one sells for $500,000 and the other for $150,000 and both rent for $1200 ?

 

[tonyla]

QUOTE (ThomasBeyer @ Jun 8 2010, 10:29 AM) It`s not ideal .. but then the price is a reflection of it !

Any house has features or deficiencies .. and your job as an expert is to assess its positive or negative value.

Of course a house with a 10,000 sq ft yard is worth more than a similar one with 2,200 sq ft only .. but what is a better investment if one sells for $500,000 and the other for $150,000 and both rent for $1200 ?
Great advice. Was looking for more of a gut check more than anythig else. Making sure buying a home without a backyard was an absolute deal breaker. Doesn`t sound like it is as long as the price reflects the deficiencies and cashflows.

Thanks to all!