All Forum Posts by: Account Closed

Hello BP!

My name is Hank Wedow and I am an investor in student housing in the Rochester, NY area. I first got into real estate investing while in college, "house hacking" with friends as my first investment. I recently graduated from the U of R and have just closed on my third rental property. 

Last summer I worked in NYC at a boutique consulting firm assisting in the underwriting of CRE portfolios being considered for securitization (CMBS).

I enjoy speaking with other investors, especially those in the Rochester area. If anyone has any questions about student rentals I would be happy to chat and pick your brain while providing any insight I can.

I also like beer. So if you like beer (or coffee) let's get together and talk some RE!

Shannon makes some nice points. My SF student rentals outperform anything else in my portfolio, though I realize these are not typical. Everything is circumstantial. 

The local private REIT Broadstone has an entire fund dedicated to SF investing.

The financial crisis created (and continues to offer) great SF opportunities. Some other reasons I've read include:

- Shift of attitude against home ownership, but still desiring SF lifestyle

- Millennials are seeking to rent rather than buy. Reasons being they don't want to be tied down somewhere as their futures are uncertain and they simply cant afford home ownership.

- Families trying to repair their credit.

Just a few reasons! But again, every deal is independent and everything depends on what's available and when.

Personally, I don't like holding any property that isn't providing a positive cash flow every month of at least a few hundred bucks, let alone one that is cash negative. 

You may be receiving equity, but that's not cash you can invest, spend, etc. Also, you are receiving the same equity on an asset that is cash flow positive.

If there is no room for a substantial rent increase I would cash in on the increased market value and find a better producing asset.

Just my two cents. Best of luck!