All Forum Posts by: Brian H.

@Jeff B. Interesting. So I guess all the people here that do this for their rental properties are probably not following the law and could therefore find themselves with some major issues at some point?

Hey everyone,

I have been working on purchasing some rental properties and someone mentioned to me on another thread that renting by the room to students could be a profitable move?  I live in a town with a large state university.  I am aware of the wear and tear aspect.  

Does renting by the room tend to be more profitable in this sort of student rental market?  

How has it worked for any of you?

How do you figure out what to charge them in terms of a lump sum for utilities?  

What utilities do you include and not include?

Is it just one rent payment to cover all of this?

I would love ANY advice any of you can give on this topic.

Thank you!!

@Jeff Sprunger I am not against that... just haven't really researched it. Do you know of anyone on here that does this? Would love to hear how it works out and what not.

@Jeff Sprunger   I'm planning on investing in Wilkes County and Caldwell County at this point. Those are two neighboring counties. Boone is a small mountain town with a 16,000 Student population state university. Also a huge tourist destination for crappy skiing and beautiful warm weather months... it has led to ridiculous real estate prices here, I have realized. So I am looking about 30 - 45 minutes away where prices seem more realistic. It is beyond me how people make money buying rentals here in Boone.

Interesting piece to add to this @Levi T. Thank you for that!

 @Jack Macioce Ok. So if I am not rolling CapEx into NOI, does that mean it shouldn't affect ROI either? How do I account for CapEx then? It has to come out of my monthly cash flow somehow doesn't it? Sorry, just a little unclear. Thanks for responding!

@Jessica Wilson I sent Brandon some examples of my numbers to look at, was just curious what others had to offer in terms of advice.  Sadly, around here, moving from single family to multi is much more than a $10,000 shift. I definitely am keeping my eye out for those types of properties though! Thanks for replying!

@Fred Winer  I'm in NC and working on making it happen. Like I said, just worried I am off somewhere in my analyses.

@Fred Winer  Thanks!!

@Jack Macioce Thank you for responding! I am figuring CapEx as 15% of monthly rent. What all falls into OpEx for you? Everything else I laid out? I guess I am just scared to have something big fail early on and that is why I am so aggressive with the CapEx.

The advice you and @Brandon Sturgill are giving is exactly the sort of dialogue I have been trying to find on here and am sure others could use this advice as well. 

 I really appreciate any further advice!!

Thanks again.

@Brent Coombs  Never said I thought making money was supposed to be easy, just frustrated with my analysis process and curious if I am doing something wrong.