- Joined
- Aug 29, 2007
- Messages
- 2,042
I am in agreement with investsmart, your positive cash flow under the circumstances is way to low, and in my opinion you will discover your expenses on a student rental will average 50% of your rent as with most rental properties. A new roof, furnace or eviction will wipe out your profits.
I would definitely avoid renting to first year students as many drop out at Xmas.
You may also consider having separate leases with the students. By holding the group responsible collectively and using post dated checks you may end up with collection problems.
Making each individual student responsible then transfers the responsibility directly to the respective parent, rather than the rest of the group, when one tenant defaults.
Rent_____$2100
Expences_____$1050
Dept repayment_____$1188
Cash flow______________- $138/month
In my opinion you are being overly optimistic regarding not having problems with student rental and rentals in general which has been the downfall of many new investors.
I do give you credit for being organized so good luck.
I would definitely avoid renting to first year students as many drop out at Xmas.
You may also consider having separate leases with the students. By holding the group responsible collectively and using post dated checks you may end up with collection problems.
Making each individual student responsible then transfers the responsibility directly to the respective parent, rather than the rest of the group, when one tenant defaults.
Rent_____$2100
Expences_____$1050
Dept repayment_____$1188
Cash flow______________- $138/month
In my opinion you are being overly optimistic regarding not having problems with student rental and rentals in general which has been the downfall of many new investors.
I do give you credit for being organized so good luck.