Rental Property Investor · Grand Rapids, MI · Member since 2020 · 2 posts · 0 votes
Son is heading off to college next year and looking at possible multi family that he can either house hack his freshmen year or sophomore year. He will be attending Central Michigan University in Mt. Pleasant, Mi.
The area has several multi and single family rentals that could provide a good cash flow but the equity would be lacking.
Sounds good on paper. Especially with your son being able to find roommates or good tenants. It goes without saying, but do your research of the area. I work on campus- let me know if I can help- send me connection or message.
@Brian Stewart can you explain what you mean by "the equity would be lacking"? If you're saying the prospects for the value to appreciate are not there, that can be okay. A lot of investors look at appreciation as a bonus.
@Nicholas L. That is 100% what I mean. The home values just aren't that high and the appreciation will certainly increase over time. The cash flow is what I trying to concentrate on but I would like to pull equity from my properties to reduce/eliminate my out of pocket.
If you both enjoy it, he could house hack that all the way to graduation. And if the place is manageable for you, or you get a PM, you could rent it out after he graduates too. There will always be students who need somewhere to stay.
Sounds good on paper. Especially with your son being able to find roommates or good tenants. It goes without saying, but do your research of the area. I work on campus- let me know if I can help- send me connection or message.