Hey all of my fellow Duluth investors. My wife and I looked at a large old house in the Congdon/Endion area of Duluth yesterday and love the house. It has great historic woodwork, beautiful spaces, etc. but needs some work. It is a 5+ bedroom home with a 2-car garage in a nice area and good schools (Congdon elementary, Duluth East HS, etc.). My question is whether getting around $1800/month is realistic for rent in this area. I know we could get this or more as a college rental, but since it is such a nice property, I'd prefer to rent as a SFH if purchased, even if we get a little less money. This home would be somewhat of a "pet project" as opposed to a pure great ROI purchase, but need to be sure it could at least have some monthly cash flow. Any incite is appreciated as we have only done college rentals in Duluth, not SFH.
Duluth is not a city on which I can comment, but I want to encourage you not to fear college rentals. Seems to me if you set down your guidelines/rules, meet all of the renters personally & if they know they are 1st to rent there from you I think you might be surprised at the respect you receive from the students. Brandon Turner says Be Firm But Fair, and this is a good model.
I would also encourage you to have a parent co-sign for each kid. That keeps them on their toes. Find a snow removal and lawn care person - figure out their fee and make sure it is covered by kid's rent. Raise it a bit if you must. Then you aren't 'on' the kids for taking care of the place and they wont get hurt on your property either.
Then when they move in give them a big Welcome Home bag of coffee - maybe some mugs from local coffee shop or UMD too (something that they will think of you fondly when using) and they will want to live up to showing you how mature they really are ;).
You might find this is a lucrative way to earn money in this college town.
These are just some thoughts.
Thanks Lynel for the comments. I really like the idea about the "care package", I haven't thought of that before.
Getting $1800 or more for a larger, nicely finished 5+ bedroom home in Congdon should not be a problem. Of course, as with any rental, a lot will depend on the condition and location of the property. Nonetheless, I regularly receive requests through my office for parties that are relocating to Duluth (often in the medical field) and looking to rent for a year or two before they buy. I see rental budgets for such parties typically starting around the $1500/mo mark and sometimes as high as $3,000/mo. Feel free to PM me if you have any additional or more specific questions.
Thanks for the response Brittany.
@Corey Robert Leet Did you end up renting to students? How was the year?
We have been getting the house ready for rent the past handful of months, but have students moving in on June 1st.