All Forum Posts by: Steven Preston

@Andre Brown The earned money deposit is required once the offer is accepted and the purchase agreement is signed.  A couple of scenarios where you could get the deposit back are if you place a financing contingency in the purchase agreement and you fail to obtain financing or if you have an inspection contingency and a defect is discovered during the inspection.

@Justin Dossey The Book on Rental Property Investing and The Book on Managing Rental Properties are pretty solid.  They cover everything from the initial acquisition (finding deals, financing options, and due diligence) to management and exit strategies. 

@Carrie Cavins I believe you may be referring to BP Podcast 140:  The Riches Are in the Niches (Like Student Housing) with Bill Syrios.

@David Sanford As you mentioned you will have turnover and repairs, but on the flip side you can achieve higher rents because it is possible to rent out rooms individually and you should have a steady stream of potential tenants with each new semester/year. 

A number of Government agencies including the Census Bureau, Bureau of Labor Statistics (BLS), and Bureau of Economic Analysis (BEA) collect data that can be useful in exploring the demographics of an area. 

Some things to consider include the employment situation and incomes in an area, population trends, the health of the local economy, whether major employers are coming to the area or leaving, whether the area has a diversified economy or is concentrated on a particular industry, etc.

Some of the numbers you will need to consider include the following:

1. After Repair Value (ARV) – What will the house be worth after the rehab is complete based on what similar homes have sold for (comps)?

2. Purchase price and any costs associated with the purchase such as inspection costs, closing costs, and fees associated with the loan.

3. Holding costs such as loan payments, taxes, insurance, and utilities.

4. Rehab costs

5. Selling costs such as sales commissions and any closing costs paid.

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