All Forum Posts by: Steve Jeffries

@Parth Patel

  I wouldn't be ok with it either, but they work it out somehow. As long as rent is paid in full each month, I don't even worry about it. I would stick with the multi bedrooms for first few deals as well. I will still be looking to those as the bulk of my portfolio. 

Be sure to read through the forums as there are some discussions about buying condos. I see a lot of talk about the care that needs to be taken when dealing with HOA's that run the condos. Some won't allow rentals in their buildings, and there is the risk you run with your fixed costs. An HOA could charge one amount and then decide one month that they will either up that charge or add an additional charge. This could wipe out any cash flow you may have. Condos aren't really an option for me where I invest, so I am by no means am considering myself knowledgable on the subject. So be sure to search around. Best of luck!

@Parth Patel

 That's correct. I rent out the bedrooms, but it is quite often that students will have a friend that either wants to live with them last minute or couldn't find an apartment in time for themselves. That's when I will get a phone call asking if they can add a roommate. On the 3/2, there is an extra living space that some of them will put a futon in, and that "extra" roommate will crash there. This of course adds rent to their lease, but helps them on the back end with utility bills. I was just using that example of how most college students will choose living with friends and splitting bills over being worried about having their own bathroom. I hope for my next deal to be a multitude unit with some one bedrooms. A lot of times after students spend a year living with friends, they will be looking for their own space and ask me if I have any one bedrooms. For the moment I have to tell them know and pass them on to another investor.

Parth Patel We have a 3/2 and a 4/2 that we rent to students. I know some local investors that offer 1/1 multi units that they typically get senior or graduate students in. They tend to take a little better care of the units. To answer your first question, we sometimes have tenants that bring in friends to use an extra living area as a bedroom. So, we don't see anyone complaining about sharing a bath. As a student it's about saving money where you can. To answer your second question, these two units have leases that are structured for second half of year students. (June 1- May 31) We haven't had any issues keeping them rented. Hope this helps.

@Lee Smith 

   Thanks for the advice Lee. It seems as though 804C provides the limitations on showing any preference as to who you are looking for. 803 almost seems to counteract this with us having under 3 properties until I reread the line "Nothing in section 804 of this title (other than subsection (c) ) shall apply to". 

I believe me stating in the post "it's perfect for college students" is not necessarily an indication of preference, but merely an observation based on one individuals opinion. Having said that, with so many people looking to make a quick buck on arbitrary situations like these, why risk it? Why risk our dream we are working so hard to build? Thanks for calling out the specific sections for me. Some adjustments will be made in future advertisements. 

I am currently listening to "The ABC's of real estate investing" by Ken McElroy on audio book. I believe it's in chapter 8 or 9 that he talks about what his strategy is for breaking in to new areas. From Internet searches he does to learn as much as he can on his own, then how to assemble a team in that market to teach and assist you. Hope that helps

My Wife and I have a couple SFR's in a part of an Indiana town that is perfect to rent to college students. We enjoy renting to college students and, knock on wood, have had good luck with them. We have actually come to prefer renting to college students. We do not want to break any fair housing laws by passing a family up to sign with college students. We currently advertise the properties on Craigslist and state that it's perfect for students and its proximity to the college. We still get a mix of applications, so here is my question. In order to narrow in on our target market, we were thinking long term of starting our management company early. Our management company would specialize in finding housing for college students. We would then advertise the management company that specializes in helping students, and not the properties. We are still a long ways out from doing the management company, as our focus needs to remain on growing our portfolio in order to accomplish our first set of goals. I am merely doing homework in preparation. Are there any legal issues that may arise from this? Thanks everyone!

Sharika Labrie My wife and I are in a similar situation. We have our two properties under our LLC, which also has its own bank accounts. The LLC has 5 accounts at the bank. One savings for each property, one savings for vacancy, one savings for maintenance, and one checking for expenses. The tenants deposit money in to their properties savings account at a local bank branch. I have those accounts simply nick named as the property. (123 abc st) this way I can ensure each tenant has deposited proper amount. Each month when rent is collected I simply move any expense money to expense account and my set vacancy and set maintenance money in to their respective accounts. I keep track of all book work in a simple excel spreadsheet that I update and look at often. I'm sure there are better ways, but for now, this is how we are doing it on our own. Hope that helps

Jim Holmes Hey Jim. I am from Terre Haute, but live in Evansville. My Wife and I have two SFR's in Terre Haute. It would be great to connect and talk real estate some time. We are just newbies in the buy and hold game and eager to learn. I would like to get your opinion on our first two deals and our strategy for the area. Hope to talk to you!

Brian Eastman Chris Soignier Thanks guys. I was unaware of that fact as well.

Brian Eastman Thanks Brian. That's exactly what I was looking for. I appreciate it.