All Forum Posts by: Marshall Gerston

I've been involved in single family homes, multi family apartments, flips, and even a commercial building. But I'm looking at something different and would like to get some opinions. A Toy Barn. An outfit in my area has built these fantastic ownership storage facilities. They are primarily purchased by well off car collectors and enthusiasts. Each project has a fantastic member club house with big screen TVs, sitting areas, outside tables, some appliances, bathrooms and so forth. Then it looks like a huge storage facility with giant garage doors with varying size units - roughly 1200 sq ft. They sell for $230,000 and buyers are fixing them up with upstairs mezzanines, lifts, memorabilia and incredible man caves. Several investors have purchased them as rentals and the going rate is about $1.20/sq ft. So the 1200 sq ft unit would rent for approx $1440/month. About the same as a SFH of the same cost in my area. Except one thing. Its a big square box! No appliances, no hot water heaters, no crazy families, just (hopefully) a high end collector that wants to hang out and tinker with his toys. There is an HOA and property taxes and I'd have to get insurance, but other than that, I don't foresee a whole lot of expenses. And, these things are going up in price. One builder about 15 minutes down the road is selling a little bit bigger units for $1,000,000 and there all sold out! So I guess I'll just throw it out there and see if anyone sees any downside to this idea.

Thanks in advance,

mg
 

Fantastic information and thank you! As I see it, the advantage to multiple leases is, if one roommate flames out, then the whole lease isn't broken. Each renter is responsible for their own room. And, it would seem that higher overall rents would be attainable. But as mentioned, if the brain damage isn't worth it...More work to do, but again, many thanks!

Great advice. I even thought of being kind of tricky and actually offering an inflated lease that just coincided with the school year. Then perhaps use the down time for improvements. Another advantage of the house is lower entry cost. In regards to a 4 plex, I was told that 1 bedrooms are much harder to rent. But if you are renting to married couples, that would seem like a home run. 

Thanks again and of course if there is more wisdom out there, lay it on me. 

mg

My nephew and several others that I know that are in college rent out an individual room in a 4 bedroom house. The landlord loves it because they have 4 rooms they are renting out rather than one lower price point lease and the students (and the students parents) love it because they only have to worry about their own lease. They all of course use the kitchen and common areas. They always have a friend who is looking to move in so the houses stay very full from what I'm gathering.

So I am looking for a traditional 4 plex in the Phoenix metro area, but I am also considering buying a 4 bedroom house near ASU and doing what I described above. Dorm rooms rents and other housing in the area are skyrocketing so the demand is there. Anyone have thoughts or better yet experience with this kind of thing?

My nephew and several others that I know that are in college rent out an individual room in a 4 bedroom house. The landlord loves it because they have 4 rooms they are renting out rather than one lower price point lease and the students (and the students parents) love it because they only have to worry about their own lease. They all of course use the kitchen and common areas. They always have a friend who is looking to move in so the houses stay very full from what I'm gathering.

So I am looking for a traditional 4 plex in the Phoenix metro area, but I am also considering buying a 4 bedroom house near ASU and doing what I described above. Dorm rooms rents and other housing in the area are skyrocketing so the demand is there. Anyone have thoughts or better yet experience with this kind of thing?