Closed on my 1st rental today.

[Christopher Yates]

It has been a long time coming but it is finally hear and still very nervous! I think this is a success story but you tell me. 

I purchased a 4/2 SFH about 1/4 mile from the university my son is attending. I bought this for him and his 3 current roommates to live in for their last 2 years at college it just needs a few small things like door handles changed and sticking doors.

Bought the house for $157K and the mortgage is $803. 

Each room will rent for $450 a month year round and I will pay for utilities. My son will not pay rent but will act as my property manager to get him some experience in REI.

Payment of   $803

Rent of        $1350 based off 3 rooms rented  

Utilities of    $ 250

Cash flow of $ 297

One huge benefit of this is I will not have to pay for my sons housing for the next 2 years saving me about $14,000.  When this group graduates in 2 years, I will rent out all 4 rooms. 

Thx to everyone on this site for all the help and knowledge.  Not sure I would have had the courage to complete this deal without it.

I am off to see my 1st possible flip!  It seems like the floodgates are open now  

Blessings!!

[Mackal Smith]

Just a few pieces of advice. I did the same thing for my son when he went to college. Make sure you have a strong lease agreement,  you review it with each tenant, and stick to it. Contact and befriend the neighbors. Let them know that you are serious about being a good landlord and neighbor and they should let you know about "issues". Plan on more capex costs than you would with a normal property especially if these are first year students.

Make sure your lease agreement states that you will be checking the condition of the property once a quarter (or more) then go do it. College kids are terrible about telling you they have a leak because they broke the faucet off the tub, or the toilet got cracked when they gave their buddy a swirly...