All Forum Posts by: Kem M.

Hello @Peter Mckernan

Hi Peter!
I've ran all through the BP calculators...multiple times....at 04:30 on a Saturday because I am an admitted nerd and love this stuff. You are absolutely correct; the 5-unit is by far the most profitable, but I was curious if there are intangible things I am not considering. For example, with the 5-unit I would have to do a commercial loan if I do not have a private investor. I have one (family), but I am not sure if I want to completely deplete that source pool (his limit is ~200k). Secondly, do you have rentals in a college town? Any advice on this aspect?

I have two rental properties currently (single family), and have had good success with these. However, college rentals is a new area for me, and apartments/multi-plexus are as well. I want to ensure I am not missing something breaking into new territory. Thanks for your reply!

Hello all,

Two questions.

1. How does investing affect your credit score overall. It seems that constantly applying for a mortgage (thus resulting in multiple hard credit checks) and carrying a large amount of debt would severely damage your credit score and make it harder to get loans. Thoughts?

2. I have heard some say that you should pay off your primary residence first, and enjoy the tax benefits on the interest accrued from your rental property mortgages. However, if you continually buy houses, live in them for a few years, and then move/rent them out, this doesn't exactly apply. Is it still a good idea to pay one rental off at a time, then pull that extra income into paying off your second property, and on down the line (debt snowball)? Is there a better strategy that anyone recommends? 

Hello!

For context: I am looking to purchase property in a smaller division II college town (student population ~6,500, has post graduate courses). The town itself has~11,000 people. Apartments and homes are averaging $250-$350 per room, and appear to cap out around $1,300 for a 5-bed.

My question is regarding property types. I have several options who all APPEAR to have similar ROIs. So, in general terms (and keeping in mind this is predominantly a college rental town) what would be the advantages/disadvantages of the following properties:

1. Triplex / duplex (3/1 & 2/1, $140-165K purchase)

2. Single family house with 4-5 bed/2ba ($75-105K purchase)

3. A 5-unit apartment (located on main street between two bars, 5/2, 4/2, 2/1, 4/2, 2/1 for $240k )

Do you recommend investing in a town such as this where turnover rate is so high and the population itself is sparse? Is it possible to own these without a property manager if you live out of state? Thanks for reading!