All Forum Posts by: Eric Fitzgerald

@Lindsay Brake Thank you! I've heard mint is a valuable tool, especially for staying organized financially. I definitely plan on keeping my expenses as low as I can compared to now. 

I just ordered it! A few people have recommended it, so I will check it out. Thanks again

@Theresa Harris Thank you, I appreciate the input! 

Hey everyone,

I am graduating college in a week or so, and want to be prepared to budget effectively as I start getting real income for the first time. I'm curious as to how you manage your money, any apps you use for tracking spending etc, and any tips or tricks. 

Thanks in advance

Eric

@Miller McSwain Hey Miller! I’m currently in a similar situation myself. I’m a senior in college and got interested in real estate around my sophomore/junior year. The one thing I would definitely recommend is getting a part time job with a student rental investor in your college market! This is what I did, and I have learned more from working for this investor than I ever could’ve imagined. Attach yourself to the hip of this person and offer value wherever you can (leading tours to students and developing marketing strategies were some of the things I did) Good luck!

@Scott P. Thanks Scott, I appreciate it.

House 1 is three separate units, yes. So each unit has a separate kitchen, living space, etc. For example, the 1st floor is a unit, the 2nd floor is a unit, and the 3rd floor is a unit, all with separate entries.

The bottom unit is a 2 bedroom, and that is where I plan to share the apartment with a roommate.

Based on the sellers explanation, the zoning laws for that property are grandfathered in, and each unit is zoned separately, and the bottom floor unit is not zoned for student housing.

In my experience working for this investor, I haven't seen anything that requires posting a sticker or anything like that to rent to students, but that is something to look into.

I am a full-time student, as well as working part-time for the investor that is selling me the property. I work around 25 hours a week doing showings and signing apartments for students and some maintenance work. Upon graduation (in May), I will most likely work for this investor for a few years full-time and build up a rental portfolio.

The investors kids are moving to another one of his properties, I believe.

Thanks

@Jacob Plocinski Thanks for your input Jacob! Those closing costs are based off an estimation from the investor. What are you seeing based on your experience? 

@Jaysen Medhurst Thanks for your feedback Jaysen. I agree with bumping the Repairs and CapEx a little bit, although it is a newer property with a recent renovation, something is bound to come up.

The electric bill covers the whole property's electricity and is $900 for the year so $75 a month. I definitely will be getting rid of the cable, I had just included it because that is an expense that the owner now is paying for, but I know I don't use cable and most other students don't either. I think there is also room in the price to move some of the utilities to the tenants responsibility down the road to increase cash flow. 

I have a meeting with my lender this week, and plan to ask more about the owner occupancy and possibly a lower down payment. Similar properties usually go for around the same $$, but comps are hard to find because this is a student housing rental (so brings in more income) on an otherwise mostly residential street right on the main road from campus.

Hi David,

Thanks for your input! 

So 3 of the units are 1 bedroom units, and 2 of the units are 2 bedroom. With me living in the bottom floor 2 unit, that would make 6 students in total. 

In regards to the cash flow, I feel I can bring that up by removing cable (all the students use netflix ,streaming etc. now) and switching some utilities to the tenant. There is also parking included, with a nice sized paved lot in between the two houses. I am thinking of charging $100/semester per student for these spaces, and I believe there is room in the price to charge this because of the prime location and the good condition of the apartments.

The property has been cared for very well, with no major repairs needed as it went under a renovation about 2 years ago. Maybe I will bump the number up because something will inevitably come up. I wasn't sure how much closing costs would run, so thank you for your feedback on that.

I have a relationship with a banker through the investor i work for, and 5% was something we had talked about. We have a meeting this week to nail that figure down. 

I do plan on staying in Bloomsburg for a few years at least, so management will be something I will be looking into in the future.

The price for the property is right at the market price for the income it brings in my area, and with the good condition, great location, and recent renovation I feel it is a good price.

I have been persistent in telling the investor I work for that I am looking for properties, and he owns a few bigger apartment buildings that take up most of his time, so we created what is hopefully a win-win, that he can focus on his bigger properties and streamline and I have what is hopefully a good first property.

@Rowen Burney Definitely something I have considered, I'm thinking for the next school year I will change up the leases and test the market to remove the all inclusive utilities

Hello All,

I am in talks to purchase my first property and would like to hear your opinion on this deal! Here are some details, and the report is attached below:

This is a multi-family student housing property. 2 houses on one plot of land, in an ideal location a half block from campus.

House 1: 3 separate units, 2 of which are fully rented for next year, and one unit that is not zoned for student housing that the investors kids are living in *This is a 2 bedroom unit, so I plan to househack and live in part of it and rent to one of my friends for around $600/month, so I have included $600/month of income in the report for this unit once the investors kids move out.

House 2: 2 separate units, both of which are fully rented for next year

The seller is an investor who I have worked under for a little over a year and have a great existing relationship with.

Please let me know what you think! This is a huge decision for me and any feedback or advice is appreciated.

I have about half of the down payment secured, so I may have to get a hard money loan, ask family members, or the investor for some help.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Eric Fitzgerald