All Forum Posts by: Michael Standish

@Michael Standish sorry “at least”**

@Esther Tama it’s a university so mostly out-of-state or at already out-of-town students. Definitely not a commuter college.

@Esther Tama Students are fine to rent to as long as you have a good PM to keep an eye on it. The guys at Absolute Property Management are good people. They can point you to handymen. I do a lot of my own b/c I’m local and I enjoy it.

@Matthew Parks I currently have one long-term rental by campus. I'm working on another deal in the next month or two that I'll try to BRRR and then either make it a long-term rental or maybe AirBnB it.

@Matthew Parks Welcome to BP! Let me me know if I can offer any local insight.

@Hank Olken Kudos to you for considering this issue. I think you should figure out your convictions and live according to them.

I read a book a few years back that helped form my thoughts around tax code. Congress writes taxes to incentivize certain behaviors and if you comply, they reward you with tax breaks. You can look through the tax breaks and basically write a prescription for how congress wants you to live. Get married, buy a home, have children, own your own business, reinvest in your business, own other real estate, give to charities, save for retirement, save for medical expenses, make your home more energy efficient, etc. Tax law isn’t perfect but the best way to change it is through legislature.

My conviction is to comply with the laws as their written. I’ve chosen to order my life in a way that capitalizes on almost all of those tax breaks and so I benefit from them.

I’m glad to see that you’re thinking critically! Hopefully this thread is helpful.

@Dan Ashley

You’re wise to be looking for ways to turn rent into your own equity. I was just visiting extended family in Brooklyn last week and recommended that they get a few family members to invest the down payment with them on a 2BR condo. Proceeds when sold would be split in the same ratio.

The math for them was:

Rent for the next 5 years: $228,000

Equity gained: $0

Mortgage payments for 5 years: $219,000

Equity gained: $185,000

^assuming a modest 3% annual appreciation

Getting started will take you further than waiting for the *ideal* property.

@Tricia O'Brien I’ve used Justin Upp with Remax. He owns properties himself and understands what matters to an investor.

I've received several messages from investors interested in the Muncie area. Below is a map that shows how I would classify the neighborhoods in the area. One caveat to consider is that even though marked downtown as a D, it does have some nice pockets. 

This isn't an exact breakdown but should help OOS investors understand how one local investors views this market.

I would agree with @Daniela Andreevska on Muncie (my market).

One major caveat is to stay north and west of the river if you want appreciation on your property. Properties south and east may cashflow well but those are tougher neighborhoods and have certainly seen stunted price growth.