All Forum Posts by: David Zheng

So many real estate investors have found that student housing is the way to go as have I

However....what happens when a large commercial company decides to building a crap ton of student housing around your area?

Here's the rundown. Currently I operate 4 condos, 3 single families, and a 3 unit around a school. Modest to updated places with usually 2-3 bedrooms per bathroom. All furnished and all utilities included. I charge around 750-825/person right now

This new company is building a 400 bedroom high rise in the same area. they are calling them luxury student apartments. these units range from 985-1500/bedroom but are completely brand new, all utilities included, furnished, gated parking, student shuttles, Gym, etc.

My question is...HOW DO I PREPARE??? Let's say the student population stays the same, meaning more supply and less demand.

1. Will it increase property values all around the area including my rentals?
2. Will I have to significantly drop my rental prices to compete even if I'm priced lower?
3. Should I sell now??

Anyone else go through such a situation and what did you do?

$4950 on a 6 bedroom :)

This reminds me of a situation I was just in.

I bought a 3 unit where the units were on the 1st 2nd and 3rd floor stacked with the same floorplan. This thing was old and had radiators and an old water boiler for heat. Cooling was through window units.

I got a quote to add central heating/cooling to each floor (3 separate units) for 28k all in. All electric furnaces and air conditioners.

In terms of the kitchen pantry vs. in unit laundry. I would personally like in unit laundry if they have sufficient space in the kitchen.

For myself, I was going to get an MBA but because of real estate, I decided to skip it.

If you really want to be an entrepreneur and you're a hard worker, you'll find your own way to make things happen. I believe starting your own business is all about teaching yourself what you need to know not just wants in a broad curriculum. Honestly in my MBS consulting job at Wells Fargo right now and in my own business as a landlord, I'm using probably 5% of the knowledge I gained in college.

Following and bumping! great post!

If its livable maybe post it for rent and see what potential applicants say about it? When they see if, will they cringe or will they not care.

@Steven Hamilton II

Should I make lets just say the HVAC guy fill out a W-9 and 1099? His 28k portion was covered by my money alone.

The other contractor costs were covered by the building loan that was rolled into the purchase loan

Hi All,

Just a quick question on 1099-Misc forms..

I bought a property in Oct 15 under my solely owned LLC. I bought it for 230k and had a construction loan along with the HML loan of another 85k. Fastforward to Jan 1 and the place is all fixed and rented out but I spend an extra 25k of my own money to rehab.

So 230K(purchase)+85k(rehab)=315k (total Loan amount)

my 25k (extra rehab)= 340 all in

Contractor Costs- $22k electrician
28k- HVAC

6k- Plumbing
10k - Painter

8k- other contractor

Do I have to issue a 1099- MISC or are they supposed to send something to me? Also do I just have to issue a 1099- MISC to up to 25k worth (my portion) of contractors or do I have to send it to every single one that did a project?

Thanks for your time!

@John Moon Thanks! if its an emergency I can take a couple "Vacation" hours from work. Otherwise I usually take care of it as soon as I'm off work. I'm lucky as all my properties, my home, and work are all within a 5 mile radius

Is this your first investment? Do you have any experience with other rentals whatsoever?

If yes to the first and no to the second, I would hold off on such a large deal and start smaller. you are essentially asking people to blindly put faith in you with their hard earned dollars based on numbers only and no history or resume