How should I go about buying a property for grad school?

Question

Hello all!

My girlfriend just got into graduate school and will be attending a 2 year program in Fort Lauderdale, FL in May. We started looking at rental properties and they were a bit pricey. I figured "Hey, I am looking to buy my first home, you're looking for somewhere to live, why not buy a house for you to live in down there?" She has two roommates lined up to live with her as well. I am trying to figure out:

1) Is this market too hot to go into right now?

2) She would be paying "rent" to me via student loan money. Is this a good idea?

Any words of wisdom would be greatly appreciated!

Account Closed · Answer

Eric, Congrats on your future engagement!  But, yes a but,

Sorry guy but there are too many questions that you need to answer to yourself!

“She has a 2yr schooling” coming up; …. Will you be moving down here in the near future?

Your “first home” and you want to finance, $100-$150K (LOW BALLPARK $!) have you been pre-qualified?

I said you'll need at least 3 bedrooms, BUT with all the missing info from you I am changing my suggestion, it's not 3 bedrooms that you need you need a 3-4 unit property.

The reason: In business you need to keep 'arms-length' distance from any deals otherwise you'll could well run into unforeseen problems! Roommates are difficult to evict or remove from an apartment, but it is easier to evict from a rental unit!

“She would be paying "rent" to me via student loan money”  .... How much?

Two roommates ... How much rent are they going to pay?  How about their boyfriends or future boyfriends?

What are you going to do with the property after she's finished in 2-yrs?

Repeat: too many questions, but you'll need to answer them (to yourself) for your own future financial tranquility!

She might be better-off  looking to become a roommate herself.

Think this out very-well

Account Closed · Answer

Sounds like you'll need 3-bedrooms!   You got a price range in mind?  Are U buying cash or financing?  A house or condo? What school in Ft Laud ?

Adam Schooley · Answer

@Eric Russell Congrats on the soon to be engagement.  South Florida is a very hot market. Your girlfriend got excepted into NSU which is in Davie.  You're not going to find anything in the price range of $100k-$150k in a good neighborhood.  You would have to come up to at least the low to mid $200's to find a good townhouse or condo in the area.  I just helped a friend buy a 3/2 townhouse in Davie and his all in monthly expenses are $1,750. You can't even rent in that community for that price.  He paid $235k for it.  You just need to figure out what the monthly budget is and that will dictate weather or not you should buy something in the area or just let her rent for two years.

William Brown · Answer

@Eric Russell Best of luck on your engagement! Also, I hope all works out well for you—just do your due diligence on the houses down there and be ready for the unexpected.

Good luck and God bless!

Eric Russell · Answer

Thank you everyone for the replies. I probably should have mentioned that we will be engaged (assuming there's a yes!) By the time she moved in. I realize it has some potential to be messy, I just would hate to see her pay $20k in rent to someone else. @elizabeth Wilson @tacos bells

Elizabeth Wilson · Answer

@Eric Russell -  not to play Big Sister on ya, but my first gut reaction was "bad idea".  Just something to think about but having your girlfriend as your rentor might get messy and might get more messy if (God forbid) y'all breakup.  Just my 5 cents. Best of luck!

Tacos Bells · Answer

I think it depends on the girl. she might decide she doesn't need to pay her boyfriend or what happens if you break up. Buying a house to rent is a good Idea but personal connections can mess things up. It would not be fun to evict a girlfriend or ex-girlfriend because you need rent money.

Eric Russell · Answer

Forgot to say Ed - we will be financing.

Eric Russell · Answer

Hey Ed. Yes, I definitely will need three bedrooms. Do you have anyone on your team at all that you would recommend? She got into Nova, so we're pretty excited! I was looking to stay around 100-150, but I'm not quite sure that is going to be possible in this market.