James Mc Ree has been a landlord since 2013. He invested in real estate as a way to diversify away from stock market volatility and to provide high quality homes to families in the community in which he grew up as a young child. James owns a portfolio of 8 single family townhomes in Delaware County, PA, all of which share a similar design.
Contact James at Landlord@McReeHomes.com if you have questions or need more information.
The homes in the portfolio were built with brick around 1950. This is significant because new building codes went into effect around this time that made older electrical and other building materials obsolete. Homes built around this time were much safer than the prior generation. Homes built with brick have much lower maintenance costs which allows for a lower monthly rent.
All of the properties in the portfolio are 3-bedroom homes. Homes with fewer bedrooms tend to have higher turnover which increases holding costs and rents. Homes with more bedrooms tend to have higher maintenance requirements due to heavier use which also increases costs. 3 Bedrooms appears to be the home size that is just right for most families and they make for a very affordable home.
Townhomes have several advantages over standalone homes which James finds attractive for his tenant families. Interior townhomes share two common walls with neighbors. This “neighbor insulation” reduces heating and cooling costs. They have small outside yards for low seasonal maintenance which, when combined with their brick exterior, minimizes overall exterior maintenance costs. This also helps keep rents low.
Each home comes complete with all of the appliances a family needs. They include a refrigerator and range/oven combo in the kitchen. Some have dishwashers and microwaves. The laundry is fully equipped with a washer and dryer. Maintenance of these appliances is included.
James’ properties are all located in family communities on quiet residential streets. The properties are in low crime areas in neighborhoods that are well maintained and gentrifying. This approach helps ensure tenant families they can live in their homes a long time, in a stable and continually improving neighborhood.
James maintains all of his rental properties exactly as he would if he lived in them. They are in excellent condition, free of all defects, when offered for rent. All tenants are asked to immediately report any issues as soon as they are noticed so James and his team of expert contractors can quickly address them. James quickly responds to maintenance calls and does not leave his tenants to live with problems for extended periods of time.
Property rents are initially set by market value. James offers a premium property for a competitive price so as to attract the best of available tenants. Over time, costs rise and rents tend to slowly rise as well. That happens everywhere. For James’ properties, rent increases are slower than market rent increases such that tenants living in one of James’ homes for several years often find they are living $100 to $200 cheaper per month than they would be if they signed a new lease today. That is a benefit James provides to long term tenants.
James’ approach to providing premium homes to families in Delaware County has worked well since 2013. The size of his portfolio has grown with very low turnover among his tenants. Turnover is the best measure of program quality. Tenants stay where they are comfortable and find value. Tenants are staying a very long time in James’ homes.
McRee Homes of Delaware County 