All Forum Posts by: Christian Belleque

I stayed in a house last year that was $3,100/month for 4 beds 2 baths. It was a little nicer but it wasn't worth $175/month better. It is ridicously expensive here especially considering the property is only 2 miles away from the beach and 2 from the school.

I would have $3,600/month. 6 rooms at $600 each

In talking to the Agent, I learned that the sellers are investors themselves and just want to get out of the property to invest in something else. I took this as a hint that they would take a deep discount on the property if it meant a quick closing. I would say around 350-375K

Those concerns are probably well deserved and are noted by me. It is funny because I played baseball my whole college career and only stayed with baseball roommates and we seemed to be pretty well behaved. Especially for a team who's nickname is the "Dirtbags". So your biggest problem with this property is the fact that it is college students and the vacancy expectation is low?

My intentions would to pay their property debt and give them some money for their equity in the property and help them move. I would literally help them move stuff onto and off of trucks. It would have to be a house by house basis to see if I would keep it for rental or "flip" it. But I would give them full disclosure in what I would potentially do with their house and if they weren't fine with it I wouldn't do a deal with them. I'm not trying to rip people off but find a solution for both of our needs.

Even with parent cosigners? I have lived in several houses while being in college, all being 12 month leases with roommates and everyone has paid for all 12 months. There needed to be a 1 month notification if anyone was moving out. Maybe I am being foolish but those numbers come from my experience in my area.

Oh and to add, I have talked to a private mortgage company already. being 22 and using it as investing, I would need between 25-30% down. I have talked to people who would be able to put up some money for the down payment. I would rather work hard on a property and learn the process and potentially wholesale it if I can get a great deal then do nothing at all and run my wheels trying to get financing for a place that has just been sold.

I would have my vacancy rates near 5% because I would have 12 month leases for students that are always coming back every year. The house is listed at 399,999. You have to realize it is in Southern California and not in the middle of Kansas.

If rents were to be $600/room/month, $43,200 would be the total income. Minus the PITI which would estimate to $24,000/year (that's being conservative) leaves $19,200/year. Take 50% for expenses and reserves and major renovations and that leaves $9,600/year. taxes would take out another 4-5 thousand(conservative again) leaving $4,600-$5,600/year. Am I missing something else? that would cashflow between $350-$450/month.

Being a student at the same University, I feel like I know the market much better than anyone around and I know what is acceptable and what can be done in the area. Student housing just seems to be the better, more profitable way in this house that is about 2 miles away from one of the largest universities in the state.