All Forum Posts by: Spencer McNeil
Spencer McNeil has started 2 posts and replied 9 times.
Post: New to investing College town questions.
- Denton, TX
- Posts 9
- Votes 1
Originally posted by @Kelly N.:
Hello Spencer,
I do invest in a college town and we have been doing well with it. There are pitfalls but there are advantages as well!
Check with the city to see if there are restrictions on who can live together- in my area you can have 3 unrelated adults, I have heard of others saying only 2. Also check if this is something actually enforced, and if so, what are the consequences?
Lots of people are scared of renting to students, but I often find them to be less of an issue than some of my other renters. It really depends on the individual- our school has a lot of people working to pay for school while they are in school, and these students tend to be more responsible. You may also find there are lots that want to rent close to campus that aren't students- they work for the U, or in town, or elsewhere but like the atmosphere.
We usually do 12 month leases- students often stay for the summer or sublet, or just pay for the months they aren't there. Most of our tenants stay for another year (possibly more, our first purchase was 2.5 years ago). There is more turnover than other rentals, sure, but I generally have a vacancy filled well before the current tenant moves out.
I am not scared of old houses- our 'youngest' so far was built in 1913. Just plan on more maintenance and any projects being more involved- electric and plumbing especially since materials and codes have changed so much in 100+ years. We also have 2 in the historic district which will mean more restrictions in what we can do with the exteriors but all in all I find it rewarding to work on these old homes.
Kelly
Wow! @kelly thank you for the information! I really appreciate it. I also would think it would be a great area to get into because of the location and as I am about to graduate and hear my peers always complain about finding somewhere close to school to live. So I will look into it more.
Post: New to investing College town questions.
- Denton, TX
- Posts 9
- Votes 1
Originally posted by @Jeff Semrow:
Check the local laws on renting to college students. The laws for student housing can be very restrictive and you can lose lots of money really fast. Plus student housing is typically for 9 or 10 month leases. Most land lords want 12 month leases.
Wear and tear is also high in student housing. You can plan on making lots of wall repairs if you have student living in your housing.
There may be a cost to upgrade the properties for student housing or the college may have restrictions on students living off campus.
Start with these and see if any of them fit.
Thanks Jeff! Really interesting information. I'll be sure to check out the laws to make sure it would be a smart investment before I put in hours of time.
Originally posted by @Frantzces Lys:
Welcome @Spencer McNeil
Cheers to your success and enjoy the bountiful of information on this great site!
Thank you! I will definitely continue to learn from this site!
Post: New to investing College town questions.
- Denton, TX
- Posts 9
- Votes 1
Originally posted by @Chris Soignier:
Welcome, Spencer! Denton is very tight on inventory, but a great market if you can find properties sufficiently below market pricing.
I've realized how tight Denton is on inventory by just living here and trying to find somewhere to live myself. I see a lot of run down homes in good areas close to the university though
Originally posted by @Michael S.:
Welcome to Biggerpockets. Great to have you here. Have you read the Ultimate Beginner's Guide to REI? It's a great read for starters. Good luck in your REI journey
Yes, I read the guide and it was very informative. There's so many resources on the site!
Originally posted by @Mark Nolan:
@Spencer McNeil
BP is full of useful resources such as forums and blogs. Welcome to the Bigger Pockets community-be sure to check out all the awesome BP blogs under “Learn.”
Thanks! I've been utilizing the tools so far and I plan to keep using them to gain knowledge.
Originally posted by @Austin Youmans:
Great job on getting started!
You should look into FHA as it is only 3.5% down and you can buy up to 4 units.
Also you could rent out rooms especially if you are staying in a college town.
Thanks! I've been reading about the FHA loans, do you know the best way I could actually see properties? I'm still learning the ropes and I want to see how the price ranges are.