All Forum Posts by: David O.

Had a 1999 Suburban sitting in the driveway, not being driven. Had it on CL every now and then to try to sell. Then I got my first investment property. My 2007 Jeep Wrangler with no top and no doors was not going to get the job done.

So now, I use the Jeep for trips to the post office and bank. Got a new set of tires and fixed the AC on the Suburban and I now use it for hauling (and storing) stuff. And, when it's raining.

I am in the same situation right now. Recently purchased a home that my son and three friends will be living in. 100% treating it as a business. He will be paying rent, insurance, utilities, etc. It benefits his record as a renter, and the tax consequences to me for his share of the rent after all of the applicable expenses, deductions, etc. is negligible. Not to mention the life lessons, responsibility, and whatnot that he and his friends will learn along the way.

Also, another thing to remember, if you decide to pay your kid to manage your property, is that his/her income counts when they are applying for student loans, which most likely will reduce the amount that they can qualify for.

Dark for the contrast. Plus, it might hide grime, stove and sink splatters, etc. better.

I am doing the same thing with one of my kids. Treat it just as you would any other rental - have a lease, have a guarantor (parent or guardian of the other individuals on the lease since they are students), collect a security deposit. All the issues that you bring up should be covered by landlord/tenant law in your state. Find them and read them. Also, I am confident that my kid will take care of the place as well, but I still have him on the lease as a responsible party.

@Joseph Cusack

Just do a 12 month lease. That's what we do ... it's easier and it is the expectation, at least in our market in Manhattan, KS.

A co-signor or parental guarantee is smart (I believe there is a difference, legally, but I am not qualified to address the differences). We use a parent guarantee.

Finally, make sure you know the local code regarding how many unrelated individuals can live in a single unit.

@David Smith

You should have gotten keys to all of the locks from the previous owner at closing. Not sure what your options are if you did not.

Just curious what sorts of upgrades you offer to your tenants?

@Paul Fagot

I'm pretty sure you need to be a licensed realtor to receive any kind of compensation related to a real estate transaction.

Congrats! That's a nice way to begin a weekend :-)

I began this year at 51. Have one in college and bought our first property just off campus for him to live in for the next few years. Three more kids to go. Not sure where they will land school-wise, but we have decided (for now) that our niche is going to be the college/university student market. Like @Sonny Ruckstuhl I also am transitioning out of another business that I have had for 30+ years. Burned out and ready to do something different. And, like @Katherine S., I wish we had started this adventure earlier, but better late than never I guess.