Updated over 4 years ago on . Most recent reply
House Hacking with my college student?
Hi all, first-time poster here! I am an "accidental" real estate investor, currently with a small portfolio of real estate. One commercial building, one short-term vacation rental, some timberland with a partner, and another commercial building with a partner (both in LLCs). I am in Birmingham, AL, and want to buy either a single-family or multi-family that my daughter a junior at UAB can live in with some friends. I have a couple of questions from my recent experience and research.
1. I have seen some mention that student housing tends to attract higher than normal rental rates. Is that true? How do I justify the premium rent to her roommates?
2. With the financing I have on the other real estate (one is considered a second home) should I pursue commercial financing?
3. Her school has a large commuter population. Someone mentioned finding a location near the fun stuff, bars, and restaurants, over proximity to the school. Has anyone experienced this?
4. I plan to pay her rent to the LLC that will hold the real estate since we have money in a 529 that is tax sheltered. I assume this is legal. Does anyone have experience with this?
thanks so much for any help!
Jason Wallis