I’m deploying my re-fi strategy on a house right now in Tucson and at the same time I’ve just posted an ad on www.rentclicks.com to get it rented out.  This is a house that we bought when the builder was taking $43k off the selling price as they were finishing out this community.  The house had been well into the building process when we bought it, but we were still able to choose some of the interior finishes.  We closed a couple of weeks ago, went in a painted the entry foyer, the kitchen, and the great room.  The appraiser was there yesterday and his early indication is that it will appraise for $50-60k more than what we paid, leaving a nice chunk of equity there to use with our re-fi.  We put 5% down when we bought, we’ll make one payment, then we’ll skip a payment before our new loan takes affect.  We’re also getting a check back at closing for a couple thousand.  We’ll see where the final appraisal comes in.  Possibly our entire loan could fit into the pay option ARM.  If what we owe on it now is 80% or less than the appraised value, we’ll be able to get an 80% LTV ARM and nothing else.  If the appraisal falls short, we’ll need to add a small interest-only second.  It’s possible we’ll get the place rented before we need to make our very first payment.

In any case, the reason I’m posting today is to share the early results we’re getting from our Rentclicks ad. 

We posted the ad online on Wednesday night (almost 3 days ago).  My property manager has already received 3 email inquiries and did one showing.  The ad has had 98 views so far.  I’ve had really good success with Rentclicks already, but this time I decided to juice up my ad a little more.  It’s always good to use benefit statements as much as possible, and anything you can write to make the reader feel like they are being taken away to never never land and into the house is good.  If they can imagine living there, they may just want to live there.  The kitchen and master bedroom typically sell the house, so I decided to put some emphasis on those rooms.  Also, one thing I changed in this ad versus the last one I posted was the opening photo.  I think I have something like 10 photos in the ad, but when you’re surfing the ads there is one that they see before they actually click in to read more.  In the past I’ve put a photo of the front of the house.  This is what everyone appears to do.  This time I put a photo of the kitchen. 

Again this time we’re asking ~$200 more than other houses in the neighborhood.  We were able to get it last time on another house that’s a few blocks away.  We continue to hear that property management companies don’t return calls and are so difficult to work with.  Tenants have to make several calls to several companies just to get info on houses they’re interested in.  Our manager is super prompt and she makes herself available almost anytime for showings.  This is definitely working to our advantage from a cash flow perspective!

Here’s the ad copy I’m using that is getting the best results of any ad I’ve run thus far:

Headline: Must-See NEW 3/2/Den Minutes from 10/19 SW Tucson 

3/2+Den 2 1/2 car garage, huge patio

Everyone that walks into this coveted Durango floorplan says “wow!” You’re immediately greeted by a wide, expansive foyer. Walk through the sweeping archway into a huge open living area. Sit by the cozy fireplace, pull up to the kitchen island for a snack, or look through the tall windows at the natural desert that continues unobstructed for miles behind you.

This home has been decked out with upgrades that are very uncommon in any rental home!

Kitchen: Beautiful rich cherry cabinetry outlines this extra large kitchen. Island with snack bar and separate breakfast nook. Built-in desk area for a computer, cookbooks, or managing your mail. Can lighting throughout makes for bright work spaces. Built in pantry with plenty of storage. Upgraded appliances, including disposal, dishwasher, gas stove, microwave and refrigerator.

Master Suite: Stunning entrance to the master suite! Bathroom is separated from the bedroom so you can get up early without waking up your partner. Upgraded plumbing hardware includes antique rubbed bronze fixtures throughout. Huge walk-in closet, separate water closet, and dual sinks. Plenty of natural light.

The split floorplan puts the kids bedrooms and guest bath on the other side of the house, within a suite all its own. Bedrooms are larger than usual.

French doors make the den private and quiet.

Lush upgraded carpet in the bedrooms. Entire rest of the house contains large 18 x 18 textured tile set on a diagonal.

Custom paint makes this home look like a model! Blinds and backyard landscaping included!

No homes will ever be behind you! You’re situated on the edge of Sonoran Ranch Estates, up against state land. Rabbits and quail visit regularly. There are several mountains in your view, along with gorgeous morning sunrises.

2 1/2 car garage provides extra storage for tools, bikes, and boxes.

This home is a must-see! Once you visit, your decision will be easy and your search will be over. AND, Erica returns calls and emails promptly. Customer service is our priority.

=== End Ad ===

 By the way, if you’re interested in deploying the same strategy I am, we are aware of homes in this same area that are currently selling at a huge discount.  This other builder is taking $50-60k off the selling prices.  Again, they are finishing out their phase 1 and are anxious to get started with phase 2.  Prices are excellent and the neighborhood has very few if any rentals, so the rental market is excellent.  See www.AnesiaRecommends.com and click on the Preconstruction tab for more details.