All Forum Posts by: Joseph Sherer

@Eric Grant

Great time to start investing.  This will be difficult without an income because banks depend so heavily on debt to income ratios.  If I may, let me ask a couple questions. Feel free to answer them on here or simply consider them.

• How much do you have to put down?
• Do you have any deals lined up?
• Are you stuck on using a realtor?

You can occasionally find deals worth purchasing on MLS but the deals off MLS usually yield better returns. When you approach lenders, you will likely find better luck with smaller, more local banks. If you find a good enough deal, you could JV with someone else or use hard money to finance the property. Keep going to banks until you find someone that will hear you out. Don't be discouraged when banks tell you no. Use that as an experience to improve your presentation to the next bank. Best of luck.

@Brian C.

Great ideas.

@Michelle Nelson We do student housing and feel it offers better return without too much more headache for that area of town. Some things to consider:

• Laws in the area regarding number of non relatives living together 
• Market for rent per bedroom vs market for rent to family

I agree the demand of the college is nice but keep in mind your average turnover will be higher with students. This will either translate to more work for you or more money paid to a PM. What other questions do you have?

@Paulo Gama

Have you checked to see average rents for a 2 bedroom vs a 3 bedroom in your area and compared that to the cost of acquisition for 2 vs 3 BR?  

@Minh Lai

We do fee per person on a joint and several liability lease.  Talking to previous landlords or employers provides the most information although this is rather subjective.  Parents cosigning is a must for undergrads. We are much more lax on graduate students and international students.    

@Jeff G. You're jumping into a great market and seem to have a good grasp on the direction you're headed.  @Aaron Montague and the other posters are tossing around invaluable advice.  I particularly agree with @Andrew S. about students wanting a room to themselves if they are choosing to live off campus.  

You mentioned buying now for this coming Fall.  Each university has its own timeline for students beginning to seek housing for the coming year.  Timing the purchase is crucial to sync with leasing in the right season without paying too unrented many mortgage payments.

@Lucian Harris-Gallahue

I think you have a good grasp on the general concept.  You mentioned the periphery which I think can be key.  You can help dictate the type of student to which you rent by the location and quality of your property.  One point I would disagree on is the needy tendencies.  Focus on finding a property with a location that would appeal to the older crowd or grad students and make sure the purchase allows you to rehab the home to an appealing condition.  Good luck and be sure to search the forum as this is a very popular topic.

@Sean White

I have found that they parallel taxes when in the county and are about 1/2 taxes when in the city. This is a rough and quick method.

Make sure to check around in the area you are buying when you go to purchase insurance.  The quotes can vary by more than 50%.  Also, find owners who have filed claims in the area with the insurance company you are considering.  The cheapest isn't always the best option although sometimes it is.

Hi @Karen Margrave,

   I agree with @Rob Bowling regarding student rentals. Dividing a SFH into bedrooms often results in increased cashflow and overall increased ROI. Are you considering property managing yourself?

@Bryan Kudlawiec

Congrats on the purchase. Are you looking to rent to college students being so close to 2 campuses? 

@Shane Pearlman

My experience is that you will attract 2 types of students with 1 bedroom suites: those who are unsocial in general and those who are tired of being social.  Neither are a bed sub-demographic of the college scene.  As students get older, they tend to be more interested in getting on with life and more willing to live by themselves.  If you can make the studios nicer than most of what's available, I think you will attract the older college crowd.  Good luck.