Beginner

[Sherilynn]

Keep in mind that with student rentals it is possible that you will have a 4 month vacancy. And any equipment that you supply must also be maintained by you. If the projector gets broken, you will be obligated to replace it.



There is no need to invest in your own city as long as you are prepared to visit the property a couple of times each year. I think this was what Kelly meant by "staying closer to home." Since you should budget travel time and expense in your property analysis, an Alberta property may not look as attractive as a more local property. A few hours' drive is still fairly close to home.

 

[Sherilynn]

Also, I would not advise rent-to-own's for novice investors. And because you only hold an RTO for a couple of years they are a short-term income rather than an investment, meaning that you can't sit back and enjoy long-term cashflow, mortgage paydown, and equity gains.

 

[MikeMcC874]

Rook,



As a relative noob, I fall firmly in the "you need to be a landlord for a while' camp. I have learned a lot over the last 3 years and I have had a real mixed bag of issues.



My first was a converted triplex in Woodstock, about an hour drive from London where I live. I will tell you that I was getting pretty sick of that drive over the winter as I was getting it under control and doing the needed renovations it required to upgrade its profile (cant imagine 3 hours). Now that it is mostly under control and I have found a good handy man, it is gravy.



My second one, was a student property in London, 20 minutes to the college. It has had a lot of challenges but it forced my to learn a bit about the RTA and forced me to understand how different student rental is from other rentals. I will be selling it this year as student rentals are not my thing. Huge cashflow but I don't like the yearly hit or miss cycle or dealing with the students(and the neighbors).



My point is simply that each property comes with its own unique challenges and there are many sub-markets inside of a market. Choose something simple and stable, young families for example and try it out first. Dealing with welfare recipients and students is harder. You will give up some cash flow but you avoid a lot of misery.



I agree with most that Windsor is a sketchy proposition. Although its not much better, why not try Chatham? Similar low cost of entry, actually getting some appreciation last I checked and only a 45 minutes drive. There are downsides but the cashflow is usually pretty decent.



My 2c

Mike

 

[Rooks]

I have been looking more and more into student rentals as a possibility here in Windsor, Ontario as students are always looking for a room to rent, not to mention all the attraction of students the University of Windsor gets for it's engineering programs.



My question; is cash-flow better in student rentals as opposed to family rentals? Assuming a house has 3+ bedrooms, 2 bathrooms that goes for about $60 000 - $80 000?



Room rentals go anywhere from $250 - $400 for students.

 

[mflynn]

cash flow for student rentals is definitely better, but the heart ache is greater as well. Students, at least here in Hamilton, are tough to manage, the neighbours too can be difficult. As others have mentioned, you also have to be very aware of the timing to ensure that you are not left empty for months at a time.

I've had a lot of luck with graduate students and I tend to buy duplexes in the areas that I know they like. I'll get a couple in each apartment. Usually, the husband or wife is coming to Hamilton to take a graduate program at McMaster and the other spouse is working. They tend to be serious, hardworking, dedicated tenants who can afford to pay their rent and care about where they live.

Cash flow is not as good as student rentals, but its a lot less nerve racking.

Hamilton is a great city to do this because McMaster is so well known for its graduate programs and because the west end of the city really lends itself to this kind of rental as it is halfway between the university and downtown Hamilton. Plus my properties tend to be a few minutes from the highway in case the other spouse's job is in Oakville, Mississauga or Toronto.

Before you decide on student rentals, I suggest you talk to someone who has done it. Listen to their stories and think long and hard to decide whether you really have the heart for it.

Good luck!

 

[Rooks]

[quote user=Hutchym]Have you entertained the thought of a University Rental in Windsor? I personally have had success with school rentals in Sarnia, ON. It is a very similar market, unemployment of >8% . There too you can find low cost units (3 or 4 bed townhouses for $75,000). Windsor is even better!

It was nice that the rentals can be near your home and risk can be lower of no payment (Students will pay 4 months at a time, in advance).

Sometimes they can be somewhat harder on your unit, but this can be mitigated with the right renovations decisions (laminate instead of carpet is major). Vacancies almost non existant when you create a "better" student space than other landlords. You can do many things that may not be considered streamline. I purchased a projector for the unit and created a movie space in the basement. Damage can be limited by using a plain white wall for backdrop and putting speakers in the ceiling for surround. This alone got alot of attention and most likely fetched me the extra $30 per bed I charged over general area rents.

The only thing about it is the potential for high turnover. However, You'll master finding good renters!

Being on the border you know your increased benefits of purchasing power that you can use. Windsor is an amazing area for student rentals. Don't write the idea off!



Mike






Mike i sent you an email to your gmail account