All Forum Posts by: Jenny Duclair

@Daria B. 

Based on your likes/dislikes it looks like SFH that rent by the room might be for you. But you'd probably start a letter campaign to the owners of the specific ones you want. Familiarity will often get you that reduced price. I pick out addresses and then comb public record to try and surmise what their story might be (retiring soon, underwater, free and clear, large portfolio and locations of those other properties). If they are living in another location I comb official records for that county as well. This gives me a good idea on how to tailor my letters to that individual. I do this only if I am really wanting that property, because obviously, it's time consuming. Since Gville's inventory is tight and at a premium, it might be worth investing the time. I've even made some long-term connections that way. You grow on people.

Students are okay with a 10 minute walk or bike ride so you may be able to look further out from the campus but still stay near enough to easily rent, especially to grad students.  Look on the law school side of campus.  I would also look near the junior college and I would even look in Ocala.  Prices are much cheaper, there's a college (or junior college) there, and it's a 30 min drive.  Keep me posted.  I would love to hear what route you take. I may even take my own tip about Ocala...miss the quiet(er) streets and clean(er) air.

@Gaurav Bahal

When I was in school I grabbed a nine month lease for $100 less than my roommate the first year by waiting until a week before school started to lease an apartment.  I was just coming out of boot camp and could not rent earlier.  Roommate could not figure out how I "pulled it off".  I think it was an executive decisions to enable them to have higher occupancy.   Every year thereafter (and I moved every year) I had to sign a 12 month lease. This was '08-'12. The rental market is hotter than its been in years so I'd say landlords can still expect to get 12 month leases out of students.  @Daria B. If you offer 9 month leases do it at a premium because that's what your competitors will be doing. I was required and it's wise to require most students to have a co-signor/guarantor.  I think landlords stand a good chance of actually collecting most out of the 12 months of rent even if the student vacates in May. To hedge your bets I would include some obscure line in the guarantor form about reporting to credit agencies and parents will pony up the cash even if students skip out.  

That's what I was thinking--what if I have to sell? For the first few properties I can alternate between VA and conventional non owner occupied loans and save up the down payments for the latter loan type in between buys. But pulling out equity will become more of an issue as I work my way up to the larger properties for which 20% down is not so easily saved in a year. I may be able to use creative financing for the bigger deals but, do I want to be *forced* to make the deal in this way? Does it make sense to buy strictly for cash flow now and balance out my portfolio with equity holding assets when prices drop in a few years? This might be a way to enable me getting started in today's market yet still provide for my future growth needs, I think.

Four times so far I've been told to focus on cash flow rather than purchase price. This is by two long term buy and hold investors, a short term dabbler and a realtor trying to sell me a property.  Because I'm going in owner occupied my cash flow would be minimum $400 (this is before any due diligence and whatever cap ex that may turn up-but I'd renegotiate purchase price in that instance). Regardless of the $400 per month cash flow the purchase price would be 75k per 2/1 unit on most of these West Palm beach MF properties. When I look through sale records I see these property owners are not only looking to pay off existing mortgages but to walk away with cash in hand. I don't begrudge them, but I think The market is peaking and if I buy now, regardless of cash flow, *I'll* be the one under water in four years. Buy and hold investors in metro cities, what say you? Should I wait until prices drop? Or just focus on cash flow?

@Daria B. I would think condos or houses with rooms rented to grad students will cashflow more. 

I once rented a room and shared a bath on Archer Rd for the same price as a whole two bedrom apt further from campus. With both myself and my roomate paying that rate the owners were propsering. It was a condo. 

A lot of the buildings that look like apartment buildings are really condos being rented by the room to students, with a centralized property managment office that owners can opt to use. 

Most of my law schoolmates rented rooms in houses across the street from campus. I think in a college town the house or condo room rental is the way to go unless you're targeting school staff and professors. Folks unrelated to the university are living much further away in suburbia, own their own place, or can only afford the D class homes you've mentioned. 

It's not uncommon that getting a cheap rental property goes hand in hand with accepting Section 8 in Gainesville. This has been my experience and learning from some investors and the REIA group up there. I dont know if much has changed since I left.

@Daria B. Prices have really jumped in Gainesville.  I was thinking of starting to look for investment opportunities there since I seem to be priced out of S. Fla market.  I was in school in Gainesville in '08-'12 and regret not buying something instead of renting.  Prices were lower all across the US at that time but I figured Gainesville was usually lower priced than the bigger cities.   I didn't expect Gainesville markets to have prices for quads similar to West Palm Beach.  I'm wondering if I shouldn't sit things out until the next real estate down turn.  

I'm in Palm Beach County facing those high prices as I try to enter real estate investing through buying a fourplex or duplex. Let me know if you come across anything.

from my reading of the excerpt posted it looks like the Lender has the right to call the loan and must give 30 day demand for payment in full. The code seems to buttress the Lender's right to call the loan. But I saw no where any wording that said transferring the interest was illegal or even in violation of the contract itself. So it appears to be a great leap to get all the way to accusing someone of immoral character for doing a Sub2.

What would an investor want to see in place already for them to want to stand in my shoes for this deal?