Student accommodation first buy
Looking to buy my first property. The property in question is student accommodation in Ireland right beside the college grounds of about 10,000 students.
it is priced at €30,000 for a two bedroom two bathroom shared living kitchen area. 650 sq ft. Includes parking and bicycle rank.
the rent is locked due to a scheme at €70 per room per week minus utilities. So €140 a week for two rooms for 39 weeks comes out at €5,650. For 52 weeks it comes out at €7,280. As I only seen this deal on the realtor website I haven't researched it more yet but I believe that you might only be able to do a 39 week contract.
Is this a good deal for a beginner if the property checks out and is in good condition
if I had to accept renting out for 39 weeks at a time is there anything profitable like Airbnb I could do with it while college is out. Or what are the chances of getting students who will rent for the full 52 weeks.
As a first time landlord what type of insurance and taxes would I be looking at? In Ireland.
is it more riskier to aqquire a low turnover rental than a high turnover as the utilities have the same chance as breaking or the same chance of major repairs or even more chance if it is less expensive. From a tradesman view it seems on more expensive houses there's more profit for the boss and a touch more precision and quality goes into bigger and more expensive builds where less expensive might be more of a get it done quickly attitude it'll do. So if it is more likely to have a major repair on a cheap house or apartment the difference in profit between this and a higher value property does nothing to counteract the downfall of a lower value property?
what have you found to be the biggest problem renting to students renting to students?
By working of a 39 rent week year the figures are
By the numbers 5,650 - expenses such as utilities tax and insurance and a small fund allocated for repairs on a 30,000 mortgage seems solid.
say my annual expenses add up to 1,650 which I'm hoping is a high guesstimate leaves me with 4,000 or about 5,500 on a 52 week basis.
30,000/4,000= 7.5 years + interest
52 week
30,000/5,500 = 5.45 years + interest
39 week
By my numbers in about 8.5 years if I choose a short mortgage it should be a positive cash flow with the opportunity to sell if appreciation is good. If value goes down can still hold as a rental. Or would it be better to get a long or medium term and invest excess into cash for fix and flipping and then use profits to pay off mortgage quicker than 7.5 years or to invest all the profits into aquiring more properties.
any advice is greatly appreciated .