All Forum Posts by: Alexander Ball

This is just the initial part of investing.  It gets easier once you have a team in place to remediate your problems.  These days when I have an issue, I call my guy, tell what needs to be done and he sorts it out for me. It sounds like this property will need some time to be turned around after which it should be decent sailing.

Not trying is failure, you should be scared of that.

I honestly just want to invest in real estate full time... If health care were not so expensive I could probably do it on $3,000 a month but I probably can't comfortably go full time until I make $4,000 a month. I'm at about $1,000 a month now and I'm going to start pursuing BRRRR's and flips very soon which I'm very excited about. I plan to do real estate investing for the rest of my life.

1. Check of year long leases are common or if it’s typically just the school year, that will affect your return a lot

2.  You’re responsible for training your tenants.  If you solve THEIR problems they will continue to come to you with their problems.  Set clear boundaries... be firm but fair.

3. It takes a lot more work to manage student rentals.  Instead of one tenant it’s 3+ who might only be there a year.  You will have to replace tenants fairly regularity every year or so.  It’s a time commitment.

4. Students are rough and will damage your property.  Be prepared to fix student damage 

5. Students and adults don’t think about others.  You will end up being pulled into in an argument between tenants because one tenant is ... making a mess, being noisy, etc.

6. It can be lucrative and it can do well.  It’s likely you’d do okay if you went in on it.  You really have so little to lose, so go for it
 

to succeed in Frederick I feel you pretty much have to buy off market.  Anything at 1% here would be a good deal imo.  I grew up and still live in Frederick on the weekends.  People hate in Hagerstown but it ranges from D-B class, so it depends on where you buy imo

If you're not 100% on real estate you should, if you are a 100% about real estate then you'll make far more in real estate then you ever will in a 401k.  

I have the opposite problem, but it might be my area. Can you post a break down of your numbers? I'm curious to see what it takes to succeed in SFR.

You will learn a $3,000 lesson and it will be to never spend $3,000 on real estate courses. 

I think you should never stop looking because you have nothing to lose. Worst case scenario is you get good at finding good deals.  If you aren't in a financial position to purchase them yourself, find a partner and ask them "how good of a deal would something need to be for you to finance and split it between us."  If you need more money, start looking for flips to fund future rental purchases.  In my opinion there's a lot of ways to grow and many of them are safe if you're smart about it.  As long as you aren't over leveraged, you should be good to go. 

That's a terrible deal, you'd lose money every month.