Renting out house for students

[Henrik Andersson]

Hi everyone!

I’m new here on biggerpockets and in realestate overall. Im an engineer student at a university and I’m planning on buy a house (my first) near campus that I can rent to 5 students. My budget for the house is around 250 000 dollar. I have to pay around 800 for the mortgage. I can get between 450-570 dollar per person so counting low my total income is 2250 dollar. I plan to save around 340 dollar a month for expenses on the house. With this numbers it will give me 2250-800-340=1110 dollar each month. I’m planning on keeping the house for 3-5 years and then sell it.

The big question I have is how I would do with the contracts. Should I give each person a contract or one person a contract that is ”responsible” for the house?

If you have any other suggestion, ideas or own experience  I’m open to everything.

Thanks

[Patrick Liska]

You can have one main Contact person, but i would have everyone sign the contract, if you do just one contract. check the laws where you are going most of the times in a single family home you are only allowed 4 non related people living in them, some states or towns i believe only allow 3, so i would check into that before figuring in 5 students. Are you managing the property ? if not, figuring in 10% of gross rent for a property manager, did you figure utilities ? taxes? insurance?