New Investor looking to get my first rental.

[Nate Mcauley]

Hello everyone !,

My name is Nate McAuley and I am looking to buy my first rental property in the upcoming quarter or two. 

I am narrowing down my decision to buying a duplex in College Station(where I will be going to back to school in the fall) and renting out one room then both once I graduate or a single family home in pearland, which I will house hack for a year than turn into a long term. 

I plan to get a small rental portfolio then step up into the fixing and flipping while doing the occasional wholesale along the way. 

If you live in the greater Houston area and would like to chat I would love to talk to anyone as I’m trying to gain as much wisdom as possible early on. 

Thanks,

Nate. 

[Nate Mcauley]

Quote from @Brian Schroeder:

Hi @Nate Mcauley!

Gig' em Aggies! College station is a great market for rental properties, I have come across a few deals out there over the past 3 years. I'm curious to know, how are you finding the properties you're looking to purchase (On-market, FSBO, Off-market, etc.)

Renting by the room is a great concept in theory, but nonetheless, you need to understand where you are looking geographically (how close is the property to the university), and second to that, you should consider -- do you need to get a duplex to make the deal cashflow? 

Given interest rates are high right now, many duplex properties do not cash flow, and I am under the impression that you might be able to get away with renting a SFH by the bedroom, for a lower all-in cost.

Summarized:

1. How much capital are you able to put into the deal at acquisition?

2. Are there any restrictions in the neighborhood on the number of non-relative persons can live in the property?

3. How close are you to the university?

4. What is the rental rate?

5. Do you have a reasonable pro forma drafted that you can use to analyze deals?

6. How are you finding deals?

I have a network in College Station who can help in terms of finding the right property. Reach out if you have any questions.

I appreciate the breakdown of the situation. I did not even think about getting a SFH and renting by the room but that is something I will take into consideration before executing my decision. I will also reach out if I have any questions.