19-Year-Old Closing on First Rental Property – Seeking Advice!

[Garry Lawrence]

Hey everyone,

I’m 19 and about to close on my first rental property! It’s a fully renovated, modern-styled, 2-story townhouse with 3 bedrooms, 2 bathrooms, and a basement in Baltimore County, where I live. I got the property off-market for $250k from a trusted family friend. It’s less than 15 minutes by car from two major universities (Towson & Morgan) and just a 7-minute walk from a shuttle that services both campuses.

I plan to rent the property by the room, targeting mainly college students due to its proximity to the schools. With 4 rentable rooms (including the basement), I expect to generate $3,600/month with full occupancy. My mortgage will be $2,005/month, and I’m budgeting up to $600/month for utilities, leaving a potential monthly cash flow of $995.

I also set up an LLC and a business account to track rental income and expenses.

Questions:

1. Do you have any advice for me as a young real estate investor?
2. Do you think my age will impact my authority as a landlord?
3. I’m debating whether to furnish the shared areas or just stage them for photos and viewings. Which would you recommend?
4. I plan to put a $600 utility cap in the lease. Is this a good or bad idea?
5. What are your best tips for screening tenants, especially for student renters?
6. Are there any specific clauses I should include in a room-by-room lease for a shared living space?
7. What property management software or tools would you recommend for tracking rent payments, leases, and maintenance requests?
8. Based on the numbers and my strategy, do you think this is a good investment for my first property?

I’m excited but also know there’s still a lot to learn, so I appreciate any insights you can share. Thanks in advance!

[Patrick Drury]

@Garry Lawrence
Nice. I got started the same way. When I was 19 I was washing dishes out of high school in Columbus and then decided to buy a single-family rental. So I bought a cheap single-family rental in a C location. I used to go and bang on the door to collect rent in cash which I don't do anymore, but I learned a ton with my first one. 

1. Do you have any advice for me as a young real estate investor?
   The best piece of advice I can give is just pull the trigger. Too many people get stuck in analysis by paralysis and then before they know it it's been 5 years and they are in the same spot 
   
2. Do you think my age will impact my authority as a landlord?
   Yes. Been there done that. On my first rental, I was dumb enough to tell them I was the landlord which was a mistake. Just tell them you work for the Property management company in my opinion. 
   
   
3. I’m debating whether to furnish the shared areas or just stage them for photos and viewings. Which would you recommend?
   Me personally I wouldn't furnish the common area in a rent by the bedroom college rental.
   
   
4. I plan to put a $600 utility cap in the lease. Is this a good or bad idea?
   I am not familiar with your market, but can you sub-meter all the utilities?/ What is the standard in your market? Maybe some people from Baltimore can chime in
   
   
5. What are your best tips for screening tenants, especially for student renters?
   Check the County court records. If you are going for college students you will most likely also have their parents co-signing for them since most of the students will probably have next to no credit score or income. 
   
   
6. What property management software or tools would you recommend for tracking rent payments, leases, and maintenance requests?
   If you have one rental Google Sheets/Excel is more than enough 
   
   
7. Based on the numbers and my strategy, do you think this is a good investment for my first property? Maybe some people from Baltimore can chime in