All Forum Posts by: Travis Hintzel

@Aaron Montague

Why extend it to 30yr? I know that the monthly cost would be lower, but I would also pay more interest expense (generally comes with a higher interest rate) and I would build equity more slowly. Can you explain why I might do this?

Also, management fees are a non-issue, as I would be managing myself. Although I value my time, as the owner, I recognize this in the cash flows. How are you calculating 'vacancy'?

@Sidney Chase

I will definately ask her about other homes that have sold in the area that are similar. Believe me, I have not been shy with the questions. She is getting plenty of emails :).

Administrative question:

How do you do the @"name" thing?

I could rent for between 400-450/room based on the market. The cash flow appears to be there. Here is the basic monthly breakdown:

Rental income: 1,600

P&I (on 15 yr): 650

Taxes: 215

Insurance: 100

R&M: 100

Realtor says that there is no HOA. I asked her to look into it. Assuming it was as high as 150, I would still have about 400 in positive cash flow. I'm estimating the rental income low and the expenses high.

I'm looking at a town home tomorrow. I am looking to rent to students, and it is in a great location, near the college market that I am targeting. My main concern at this point is getting it at a good price.

It has been on the market for 35 days and the seller is asking 116,900. The property value estimate (Zillow) is 111,000. Also, it appears that other similar properties in the area are a little lower than the seller's asking price. I think that I can increase the value of the property by doing some small tasks, such as landscaping the front and back yards, staining/replacing back fence and some upgrades in the house.

The market in the area is very hot right now. I want to move on something soon before students start signing their renewal contracts with their current apartments or before they have found other alternatives. Classes start in September. If I wait until August before I am ready to rent, I will likely not find tenants until at least December when the next semester starts.

I am new to this, so I am starting to feel a little anxiety and nervousness that I am making the right calls. Can anyone give me some guidance? If I can get this property for close to 'market', should I move on it?

Also, when renting to several individual occupants in what is traditionally a single family home, how are utilities taken care of? Is that generally something that would be included in rent? How about furnishing?

I know that I'm coming out here with a lot of questions. Thank you in advance for all of your replies. They are much appreciated.

This is all great stuff guys. Thanks so much for the replies.

Tomorrow I am going to check out some landlords who are already doing the same thing and look into what they charge for rents and how they set up payment for utilities (if included or paid by tenants). I will definitely check the HOA rules on renting the townhome before moving on a deal. The only problem that I think that I may have is that I may need to furnish at least the common area. Anyone have any takes on this? I could understand having the students furnish their own rooms, but it would be a tough sell trying to get people in there with no furniture in the common area. I even considered offering a rent rate unfurnished around 450 then maybe a furnished rate around 500, if it makes financial sense. I'm not trying to make a killing on the cash flows. I am in it for the equity and the appreciation.

Hey everyone,

I'm looking into buying my first property. I met with my banker the other day and I know what I can afford. I'm looking in the 80k (give or take 10k) range. My idea is to purchase a home in a college town that is 3-4br. It is pretty common in this particular college town for students to rent a house, or just a room in a house with several other students living there. The cost of living in dorms and apartments is high, and I would be offering a much lower rent than any apartment could offer. The demand is there, and it would be a great deal for all parties involved. Comments with experience on this is invited.

In my search, can you all give me some ideas of what I should avoid? How do we feel about townhomes? I see some that have been posted for over 150 days and they seem to be underpriced. I cant help but wonder why that might be. Can anyone address this?

The saying that I've read on this forum is 'You make your money when you buy the house.' With that in mind, how can I get a good idea of what the house is actually worth? What kind of offer can I get away with making? 10% less than asking price? 20%? I don't want the seller to walk, but I do want to get a good deal.

Thanks in advance for answering my noobie questions! :) Please feel free to post any links to other discussions that answer this. I am trying to take in all the information that I can to make an informed decision.

Hello all! I am new to the forums and very excited to be involved. Here is what I know about real estate:

1) I haven't even reached the tip of the iceburg in the 'knowledge' arena.

2) I want to be involved.

I'm 25 years old and I am currently employed as an auditor for a public accounting firm, but am looking for some strong investments as a second stream of income. I have experience helping my father as a handyman and I feel confident in my skills doing maintenance. I am looking at purchasing properties that may need a little elbow grease that I could potentially turn into a rental property, or possibly a flip. If I went the rental property route, I would be looking to sell in a year.

My reasoning for the above is this. Getting started in this business, I want to build up my capital. Any proceeds from rental income or gains on a sale would be reinvested. In 5 years, I would like to be at a point where I have several rental properties or a large apartment complex that would be able to pay my current salary. However, I am looking for a second stream of income, not a job replacement plan, so I am not in a big hurry. I am very open to ideas at this point. I'm sure that once I do more research and reading on this forum, I will narrow down my focus.

If there are any 'gurus' in the Dallas, TX area or even just someone who would be interested in sharing their experiences, I would love to meet up and bounce some ideas with you. I'll even buy the coffee! I live in the Plano, TX area. Feel free to message me or comment here!

This seems like a great community and I am looking forward to being around for a long time. Look for me on the forums!