All Forum Posts by: Lois Stern

1. OK - so this is NOT a DONE DEAL, but I felt I should write and share this experience.
2. I have found [and am in process of making offer on ] a home in an area that is hopping. It needs some work so it appraises much lower than others in the area. With letter of approval in hand, we are set for our loan, but then I discovered our HELOC is actually come due and I cannot use it for this deal...

SO - first I think "I'll ask the bank to open another for $60,000.  But my husband thinks that's a bad idea.  Then I start asking around for how others have handled getting this last piece in place [maybe a first piece for others]... and finally I take a deep breath and put on my "I CAN DO ANYTHING" hat [it gives me confidence, lol] and call up one of my friends with lots of money.

Background:  I thought I couldn't go to any of my "rich" friends until I had at least one deal under my belt.  I am a "creative" after all ... would they think I can be a real estate investor and landlord?  Well, we all see ourselves one way and then how we think others view us ... and sometimes we are just dead wrong!

I called my friend and told her what I'm up to, what I have on the hook and how much I need to get the deal done.  Threw out a few ideas on possible terms [thanks @Nicole W for term rate ideas!!]  She said her husband had been discussing a deal like this w/someone and it fell through - gave me his cell # and we had a terrific conversation.  I'm going to send him my very impressive BP Analysis and we will be having a discussion shortly!

Filed under the heading: What's the worst they could say?

Always exciting to hear a first success story!  Two WOOTS for taking action!!  

I'm about to close in on my first purchase which will be intended for student housing at one of the local universities [that my son happens to be attending - and interested in living in a group house instead of an apartment ... so it seemed a good choice as a starter for me].

Here's my quandary:  As a mom paying the rent, I liked when my older son's residence included a utilities stipend [wording?] so that, for the most part, no extra fees would occur.  Yes, they often ran over the electricity and we got small charges [cold winter, more heat...], but they were small and manageable.  Therefore, I'd like to include the electric, water and internet as a courtesy.  Perhaps something like this:

UTILITIES:  Electricity, Water and Internet shall be paid by the tenants.  Owner agrees to carry all utilities based on a "budgeted plan payment" of $_______ per tenant each month.  A late fee of $5/day will be assessed for utilities in addition to late rental fee.  If adjustments are required, they will be addressed via email to all tenants.

SO - I'd like YOUR thoughts on whether I'm crazy to include the utilities... and if I'm not [well, if you knew me ... but we're talking specifically about utilities here] - does the above sound like a solid clause?

I, too, am about to purchase my first property with the intention of renting specifically to university students... beginning w/my son & his friends.  The above information [particularly that of @Aaron Montague is right on the money [so to speak!].  

What I have found, is that the students look at the house and how much it is asking for and then determine how many of their friends they need in order to make it affordable [as some are paying on their own - not getting help from Mom & Dad].  If that means 2 in a room, they are willing to do it in order to live where they want at a price they want.  Just make sure all original renters are on the lease.

Here is a clause in someone else's contract that addresses the sublet part [that I think is good]:  SUBLEASING:  Tenant agrees not to sub-let the premises nor assigns this lease agreement without the express consent of this Owner.  Should approval be granted, sublessors must fill out the applications and be vetted in the same manner as tenants. 

It goes on to discuss the violation of this stipulation and how money will be collected.

I loved reading all these posts  - and thank you @Jonathan Twombly for starting this thread.  I think it is hard to admit what we are afraid of!  I fear sounding or looking as uneducated in how money works as I am.   {phew, now it's "out there" in the cosmos and no lightning bolt has come}

Thank you for creating this diary to share your experience with us.  Can't wait to read more!

Great question @Vincent Crane

- thanks for asking it [I wait patiently to see what answers are given]

@Ben Leybovich Buy Rehab Refinance Rent Repeat 

Would College Housing [sfr's aimed at the college student] count as short term rentals?  If not, is there a forum that does pertain to that?  thanks in advance!

I will be working with @Jerry Padilla who seems very competent and is an investor himself.

@Lamont Marable

 - how do people cash flow with the incredibly high property taxes in the city?