All Forum Posts by: Brett G.

I would certainly try to rent it, even at a discounted rate, until the next school cycle.  Until then, hopefully you can charge enough to at least cover your expenses.  And in a few months, you will be in a good position to crank up your cash flow.

We start advertising 4 months before the next school cycle with hopes of having signed leases and deposits at least 2-3 months before they move in.  This may vary market to market.

@Dustin Travis Ray

Check your local zoning laws to find out what is allowed and to find out how many unrelated people are allowed in one dwelling.

@Kim N.

In our particular situation, most students start early looking for places to live the next school year. We start advertising and signing leases in January for a May-April lease.

This will vary from school to school and town to town. I recommend talking to property managers, other landlords, and even the college to get a feel for the student rental cycle in your area. Property managers that deal with student rentals is probably your best place to start.

@Kim N.

My property manager is one of the "go-to" people in the town for rentals. She does also advertise on the local Facebook rental groups.

The bulk of our Facebook group advertising happens within the 2-3 month period when we are trying to fill for the next school year. Generally, during the rest of the year, what I see on the Facebook group pages are students looking to leave and sublease their spot in a house.

@Thomas O'Donnell

Definitely fix the gutters and downspouts.

Mudjack the walkways to raise the side next to the house. Then seal all cracks in the sidewalk and along the house.

@Brad Turner

I have used Homewyse for ballpark estimates. It is a useful tool to get an idea of costs for different tasks.

I invest in a small town that has one of the State Universities.  The town also has several fairly large employers.  And, I do have family in the area, so I have a good reason to go back on occasion to check out my properties.  The problem I am having now is there are only four houses for sale in that town right now, which is bad when you are trying to grow your portfolio, but is good if you are trying to sell.

I rent to students.  You can generally rent out to students for more than you can to a family.  And, they always pay on time. 

Regarding buying in small towns, it is done all the time.  The challenges are you have more lower paying jobs that can be subject to the whims of the economy, there is generally very little appreciation, there are a lot of very old houses that have a whole other level of issues, and some small towns are dying off.  All that said, one thing we learned the past couple of years is people can work from almost anywhere on the planet now.  So, maybe small towns that have some sort of appeal will start retaining their young population.  So, why do people live there?  What keeps them there?  Is it at or near a destination for other folks?....

There are other cities in the Midwest where the entrance price is still fairly low, especially compared to California.  You just gotta do your research and due diligence to find those opportunities.  

When I look at a property, if the numbers don't quite work, I ask myself, Can I do something to inject some value to the property and increase the income and/or value of the property?  If not, I cross it off my list.

Anyway, this has been kind of a rambling post.  There are so many things to consider, wherever you invest.  So hopefully you are able to glean something from it.  

@Cristal Rivas

Hmm...El Dorado Springs, MO. I am pretty familiar with that neck of the woods. It is a very rural area. I am not sure there are very many folks on this forum that have heard of that place. May I ask why you chose that town?

It's been a while since I have been through there, so I don't know any contractors. If you have talked to property managers there, they should have recommendations for you. Get some phone numbers and call them. It wouldn't hurt to go meet them at the property, at least for the first property, so you know who you are dealing with. If you find someone you like and trust, it will be easier to call them up for the next property rehab.

I invest in rural Midwest from out of state and the initial legwork is the hardest. If you find a good property manager who can advise you on local contractors, neighborhoods, houses to choose/avoid, and how to prepare your house to maximize rent for the ares, they are worth their weight in gold.

Good luck!

@Will Gaston

If there is still live k&t, or any other old wiring, an electrician will want to rewire the whole house, for liability reasons, since they don't know where the newer wires end and the old wires start.

If it's going to remain a rental, and to students, running raceways can be a way cheaper option than tearing out plaster. Careful planning of the wire layout can minimize the visual impact of the raceways.

-Find out what college rentals rent for in your area. They can usually rent for more than a typical rental. For example, maybe you can get $1000 for a 4 bedroom as a regular rental. However, maybe you can get $400 per bedroom as a student rental.

-Some landlords rent by the room. I prefer to to have one lease that everyone is on.  Each person is individually and wholly responsible. 

-The more bedrooms and bathrooms in a house, the better. If you are getting $X per bedroom, a four bedroom is better than a three.  Look for opportunities to add a bedroom. 

-Find out the local college rental cycle, i.e., sign leases in May for a Aug-July lease. It can vary from area to area.

-Buy close to the school, as well as other amenities such as bars, stores, restaurants, and other places college kids want to hang out.

-Check the zoning laws regarding number of unrelated people allowed to live together.

-Search for Facebook groups that advertise college rentals in your area.  This can give you an idea of what is available, what is the lease period, and how much they rent for.