Hi, I'm looking into buying my first rental (3 bedrooms, 1.5 baths) with 20% down and a 30yr amortization at a purchase price of $100k. It would be an out of town purchase but I've spoken to a property management company in that area about rental prices. I'm looking to rent it out to students as it's close to a university. The property management company said I could expect $400-$550/room.
I know the general rule is to own more than one door but does that still apply if I'm renting it out on a per room basis? Also, is renting out to students a good idea? What else am I missing?
Thanks in advance for your feedback!
@Heval O., I don't know what "general rule" you're referring to. The number of doors you own all depends on your goals and strategy.
Student rentals can be great market. Go in with your eyes open. Search BP, there are a lot of articles, forum posts, podcasts that have discussed the topic in detail.
Thanks @Jaysen Medhurst. I was just referring to all the articles/blogs I've read that said to own at least 2 doors as a way to hedge against risk.
@Heval O., by renting by the room you are mitigating your vacancy risk.