All Forum Posts by: Tim B

Thanks Aaron, I offered $170k (listed at $219) bank just countered 190k. Home next to mine just sold for $334k (same sf). In addition to the 5 bedrooms my house has a studio over garage that could become a 1 bedroom rental - boosting total rent to $3200 - I think for that much rent it may be worth the aggrivation of 5 students!

This is my first rental, however I'm semi retired, with time to manage property.

Am I missing something in this investment?

If I rented to 5 students (5 bedrooms) and the parents are responsible for the rent - would I signed 5 rental agreements with 5 parents or make one parent responsible for all 5 students?

Often the 5 students are friends and want to rent the entire building.

Apparently students are used to renting for 12 months even though they only use the property during the school year.

Anyone else with student rental experience?

Mark, sounds like you have had problems with college rentals - can you share any experiences. I'm contemplating buying a student rental.

Probably its legal, because so many have been doing it in the area for years - the colleges have a lot of clout (desperately need student housing) and the city tolerates.

Will check with the city!

Off topic - the neighboring house with similar sf sold for $320k last month.

Crashpad may work - when I was in my 20's I traveled as a sales rep and rented a room in a house by the month - only used it a week a month but it was cheaper then a hotel!

Also rented rooms to friends and others myself (again in my 20's)
It paid the mortgage payment and lots of parties!

Make sure they sign a RENTAL AGREEMENT.

MIke, see what your saying about the 50% rule - the figures given were a general range - actual property I'am considering is an REO asking $219,000 with potential maximum rent of $3200 ($3600 taxes).

This would involve renting to 6 students which seems like a lot of occupants and a lot of damage.

Also I understand neighbors are very sensitive to student rentals - because there are so many in the area - this is an upscale neighborhood. (good for resale value).

Any other experiences with student rentals?

I'm trying to buy a single family rental house in an area with 5 private colleges - lots of demand for student housing. Students will typically pay $450 to $500 monthly, per room - 12 month lease - parents actually sign the lease and pay the rent. So a 4 or 5 bedroom produces $2000 or $2500 monthly income.(price range $180k to $220k - taxes $3600).

Do any investors have experience with student rentals - they seem like money makers - What are the pit falls, other then students being hard on the property?

"keeping your powder dry" probably depends on the local market - generally it's smart to wait 6-12 months for lower prices. Recently I have seen major price concessions by banks in Tampa, Phoenix, Minneapolis, San Diego. Only recently, formally good markets, Austin, Charlotte have started dropping in price.

After 20 years as an investor I'm sitting on the side lines - why do you want to buy today when it will PROBABLY be 10% cheaper in 6-12 month. This is called "catching a falling knife" Just think what position you would be in if you accumulated property 3 years ago. Check out a Blog "FLIPPERS IN TROUBLE IN ORANGE COUNTY" May make you think twice about jumping in too soon!

20, 30, 50 flips a years - WOW do you guys have time to sleep!
I have flipped (rehabbed) houses for 20 years and usually do 2 to 5 per year. I concentrate on buying houses that have minimum of $50,000 profit potential. My suggestion to new investors is to PASS on many possible flips with low profit potential. Don't jump at the first fixer-upper you come across - make sure it makes sense. Be realistic about your renovation costs and the resale price - especially in this market! You may have to move up the price bracket (300k - 400k) but you will make the same total profit and work much less!

Now - all this having been said - this is a very difficult market (phoenix, tampa, minneapolis, charlotte) to do the kinds of flips I'm talking about. I'am actually staying on the side lines until the market stablizes or I can find a flip that makes financial sense. Perhaps today the only way to make money is to do low profit high volume flipping.

I'm getting my RE license to sell REOs to all the investors that want to rehab. Hopefully I will come across a good deal in the process or the market will stablize and I can get back to making real money flipping houses!

After flipping houses for over 25 years I'm looking for a new way to make money in real estate. Unfortunitely the "renovating and flipping" business model has broken down. 3-4 years ago everyone started flipping then came the TV shows and then RE bubble burst!

Recently made several offers on potential rental properties - only to be beaten by 6 to 10 other offers.

If so many investors start wholesaling REO's (herd mentality) will they bid up REO prices too high - are there enough cash buyers for all these new wholesalers? What happens when the number of REOs start declining in the next 12-18 months?

Would be interested in vetern wholesaler opinions!