Can I survive as a student landlord?

[Sam G.]

I've read a lot about landlords investing in student rentals but haven't found much about landlords that become students. 

I have a 3 unit that cash flows very well for me with great tenants and minimum maintenance. I'm strongly considering going back to school for a career change in order to increase my future income and buy more real estate. I have some money saved up in the event of evictions/repairs/turnovers but I'm unsure if it's enough to rely on the property to pay for itself through cashflow and a small savings. 

I won't be working while in school so this has led me to contemplate selling a cash flowing property., which I hadn't planned on doing. 

What do you guys think? How much savings would you need to have in order to feel safe? What are some factors to keep in mind? 

[Dana Dunford]

@Sam G. - Put together a spreadsheet with all of the important factors. 

Income

• Current savings 
• Rent (assume higher than usual vacancy rates and lower rent than standard to be safe)

Cost:

• Living expenses (be conservative and allocate over what you typically spend)
• Tuition and books
• Property (be conservative and assume higher maintenance costs than typical)

Be more conservative with your assumptions than you typically are --> estimate your monthly outflow based on tuition and living expenses.

With your conservative estimates, subtract cost from income over the duration of school (come up with monthly and quarterly forecasts). You will then be able to see if you can afford it.

As someone who has done a lot of research on whether school is worth it or not (I have 2 masters degrees and 2 undergraduate degrees) ... dropping out has a really bad return on investment --> you've wasted time and money (unless you start the next Facebook, then drop out). SO, do this analysis up front rather than figuring it out as you go along (and potentially dropping out).  It's all or none if you want school to pay off for you.

I hope that helps!