U town investing?

[bigbabba]

hello everyone

I`m looking at buying a property in a university town to rent out to students. Can anyone give me some tips on this? I have a nice sum of money to invest ($100k) I will not be investing all but it`s just money I have to play with. I read Don`s book a couple of years ago and many more, I have read articles and been on many websites, so I do understand RE investing theoretically, now I just have to jump in.

I`m looking to purchase something in the $150-$200k range for my first investment property, (waterloo) preferably a condo TH near UW. I am a licensed HVAC/R mechanic so I will be doing my own repairs on hvac equipment, some plumbing and some electrical if needed.


I considered joining REIN but I find it pricey and not sure it will deliver what I may be looking for, so for now I will do without it.

Please feel free to give my any advice, comments or suggestions..I`m all ears

thanks!

 

[RussellWestcott]

Howdy Welcome to the Forums...
I`m not sure if this is advise but it might be a very good question to start off with

You mention you have some money, read many books, articles, been on many websites and understand Real Estate Investing theoretically...

What would be the top three specific things you think are stopping you from moving forward and buying a Real Estate investment?

1)...
2)...
3)...

Perhaps after that question we may be able to offer some specific information to help

Cheers

 

[thejules]

If I were you, I would talk to other investors that do student rentals. They can be intense to manage. And you need to be aware of all the fire & city requirements. I would investigate the towns KWC or Barrie/Orillia.

But I would really consider taking a Quick Start, like the one coming up in Edmonton before you do anything. You may find that your education was the most valuable investment you ever made...

 

[bigbabba]

well, there is really only one thing at this point. I have not read much about student rentals so that is really the only thing holding me back at this point. I am trying to see what are the pros and cons of this type of rental as opposed to just renting to a family.

I know some of the pros and cons but I would like to hear from some people who are actually in this type of rental business.

 

[RussellWestcott]

Here are some great threads you may want to review, I had to filter out only the ones from the public section, as my search for +student+rentals came back with many threads, you should be able to open these threads... if you have any difficulties let us know



http://myreinspace.com/public_forums/Real_Estate_Discussion/62-6353-Student_homes_in_KitchenerWaterloo.html



http://myreinspace.com/public_forums/Real_Estate_Discussion/62-6014-Student_Housing_near_U_of_A.html



http://myreinspace.com/public_forums/General_Discussion/61-5750-Ontario_student_rental_lease_agreement.html



http://myreinspace.com/public_forums/Real_Estate_Discussion/62-3820-Student_Rental_or_Standard_Rental---Which_is_best.html



After you go through these you should be able to find some experts that may be able to help... a combination of more information and some key relationships (team members) should be able to help get to the next step

 

[bigbabba]

thanks Russell

 

[housingrental]

Hi I can be of some assisstance I have a few hundred student bedrooms around Waterloo that I rent out or manage and also do some non-student residential.

Student rentals can be great but only if you get a good product and do a good job managing it. If so, you can look forward to nearly 100% occupancy and rent collection AND generally much higher rent to purchase price.

BUT

You`ll have higher turnover and higher costs associated with this - Cleaning, repairs etc.. and its more time consuming to manage.

If not a good product, or mismanaged, it can be a horrible experience for some owners.


Also you`ll need to look into legality (re lodging house license, accessory apartment registered, or legal multi-unit), ESA and fire inspections, etc..

Let me know if you have any questions

 

[bigbabba]

QUOTE (housingrental @ Oct 3 2008, 05:21 PM) Hi I can be of some assisstance I have a few hundred student bedrooms around Waterloo that I rent out or manage and also do some non-student residential.

Student rentals can be great but only if you get a good product and do a good job managing it. If so, you can look forward to nearly 100% occupancy and rent collection AND generally much higher rent to purchase price.

BUT

You`ll have higher turnover and higher costs associated with this - Cleaning, repairs etc.. and its more time consuming to manage.

If not a good product, or mismanaged, it can be a horrible experience for some owners.


Also you`ll need to look into legality (re lodging house license, accessory apartment registered, or legal multi-unit), ESA and fire inspections, etc..

Let me know if you have any questions

thanks, I do have a few questions

1. if the house is a 5-10 min walk to the schools, what kind of rent can I expect per room?
2. are the leases 8 months or 12?
3. are utilities inlcuded in the rent (assuming they are, easier to manage?)
4. where is the best place to advertise?
5. are the rooms furnished or unfurnished?
6. would a property manager take on this type of investment?


that is all for now, I`m sure I will have more..your answers are much appreciated

 

[housingrental]

Sure Laszlo, happy to help.

1. Depends on the house..

generally around 375-450 per month plus utilities (or slightly higher inclusive) but can vary re exact location, size, condition, etc...

2. Both and other. Generally, and most places I deal with are for minimum 12 month commitments

3. Some places are inclusive some are plus utilities. Some places out of practicality you should only offer inclusive ie multi unit with just one meter. Also if only unit its still better to go inclusive generally if not renting to a group, or a very large group size re someone stiffing their roomates and you having to deal with it.

4. The universities have online ad posting sites.

5. Most places I deal with are unfurnished though some are furnished.

6. Some will and unfortunately a lot of property managers won`t take on student properties and unfortunately a lot that do manage student properties do a poor job of it. I`m happy to help if you need my services.