All Forum Posts by: Steve D.

Michael,

I think this will be very difficult to do unless you are personally friends with a physician(s).  Physicians are constantly bombarded by financial advisors and firms.   They tend to develop a barrier to these advances.  Also, this is a overgeneralization, but physicians generally like to be in control, and are risk-averse.  I don't think this type of investing would be up their alley.   My opinion is that this is not a good idea and your time is better spent targeting another investor group.  

I have not had any trouble renting my college units .   It's a high demand area, and will rent.  I find that I can get higher rents if I get on it early.   

Not sure if you need to incentivize them, I guess depends on supply/demand in your area.  If you think you'll have trouble finding someone, maybe give discount on one months rent?  I've never done this .  

What I have done is create my own lease agreements.  That way I can tailor it any way I want.  

You are correct, kids go home over Thanksgiving, talk to their parents about where they want to live next year, etc.  So you need to plan. 

In my lease, it states that I will send them a reminder in mid-November that they need to commit to the following year....or not.   I let them go home Thanksgiving and decide.  By first week of december, they need to tell me in writing whether they intent to renew lease in August of following year.     If they do not respond, this  means they will not renew and at that point I put the place up for rent.  

Only once has someone backed out in Spring after committing.  I make sure lease states that they forfeit their security deposit if they do this.   No way of guaranteeing that they won't back out obviously.  

What scope of work is needed?   Full gut rehab?  Or renovating kitchen, bathroom, flooring, and other cosmetic work?  If the latter, I have a great contact who is honest and does good work at reasonable price. 

If it is a month to month lease, just don't renew his lease!   

The difficulty is with one year leases.  That's when you have to start thinking about eviction.  Month to month is not an issue. 

Tina,

There are a couple ways to find out what rents go for in an area.  One is by going on rent-o-meter and getting an idea from that, but the most reliable way is much harder and takes time and effort.  You go inside house after house that is for sale, especially established rentals and see how much they are being rented for.   For example, if you look at ten 2 bed/1 baths in oakley, you'll have a pretty good idea of what to expect in rent for a 2/1 in oakley.  Same thing applies in other neighborhoods.    If you are serious about this RE investing gig, you need to spend a lot of time looking at homes.  

And if you are worried about finding tenants for your first deal, the safest approach is to buy an established rental that has tenants in place.   That eliminates this anxiety for your first deal.  

Tina:  I am a buy and hold investor, and have looked in Hyde Park/Oakley area for some time but the numbers just don't work nearly as well as in other neighborhoods which is why I have yet to buy anything there (esp Hyde park).  

I don't want to make assumptions but it sounds like you don't have that much capital.  If that is the case, those high priced neighborhoods are probably not the best areas to start in.    

And this is the challenge of real estate investing -- finding off market deals takes time, and for someone with a full time job who is competing with those who do this for a living, it is extremely difficult. So you end up working with an agent, scouring the MLS or zillow to find deals. You have to realize that you will not get those killer deals with this approach -- it's okay, not all of us can direct mail and "drive for dollars". Ain't nobody got time for that! Especially with a full time job. Keep looking but I would recommend expanding your search territory, learn about other neighborhoods and you will eventually find that property.  Just remember it's a learning process, your first deal won't be a killer deal, but you will learn from it and with each purchase you become a wiser investor.   

Also, as soon as I find out there are multiple offers on a property I walk away.  That is a red flag and sure way to buy a bad deal!   The seller is in the driver's seat and you are roadkill in that scenario. 

 This is right on.   You really cannot ask someone else what rate they are getting, and whether or not you should shop around or not based on their numbers.  Your financial portfolio determines your rate.  Example:  I recently got a 3.75 30 year fixed on investment property, while a friend of mine, through same bank, got 4.875.

 I think most students live in Clifton heights, University heights and Fairview areas...this is what "CUF" stands for.    Also perhaps in in Clifton gaslight district.    As with most colleges, no definitive boundaries but I would estimate 80-90% of students are concentrated in these areas.   

Hyde park and Oakley are about 10-15 minute drive to UC,  probably more suited to grad students as price points higher.  

Madisonville is surrounded by strong neighborhoods, but it's an awkward location.  Question is who would want to live there and what quality tenants can you attract?  It's still a pretty rough area.  No major employers there.  doubt the young professionals will bypass Oakley to rent in madisonville.  Currently there doesn't seem to be a good reason for someone to rent there who can afford to rent in Madeira or Oakley/Hyde park.   i think a tenant who would live in madisonville right now simply cannot afford Oakley or surrounding neighborhoods.   

it would need a fairly significant overhaul/gentrification for this to change, and I believe it will take a fair amount of time (many years) for it to happen.   

OTR is different in that it is very close to downtown and many employment opportunities.