All Forum Posts by: Will Gaston

I'd recommend going to the websites of some of the larger student housing complexes in your area and finding out their rents. Price it lower than those rooms to give friends incentive to live with you instead.

Also, don't be afraid to check out Zillow. The zip code of our college town will have a treasure trove of rental information.

Good luck to you!

@Bob H. This is going to sound harsh but I think you're going to upset a lot of people doing this. "Most" people want to be told the rent amount and it will feel scammy if they aren't.

@Allan Smith Full disclosure: I've never heard of it.

It seems like you already know the answer to your question. I'm sure there are reputable ones out there but is incredibly rare that positive reviews are posted in the forums about any of these types of seminars. 

I think you'd be much better off to find a great flipper in Nashville and offer to manage one of his flips for free. You'd probably get a lot more out of that without spending any $$$.

@Edward Stephens I think many sellers would be open to carrying a 2nd...IF (and this is a big IF) they trust the operator of the property.

I know great operators that I would loan 125% LTV on property. Some people just know how to manage property well and have shown a history of being trustworthy.

If you're not a great operator yet, what are the chances you could get one on board in exchange for some equity?

@Alex Forest In short, there's a reason very few people are living in these areas. Not a lot of jobs or opportunity.

How would I find great tenants, a strong PM, and reliable contractors from such a small pool of people?

The draw of great returns usually doesn't translate in the real world and properties like this. In my experience, these properties only work well with local investors who self-manage.

@Chris Clemptor in my experience, the market will give you quick feedback.

I expect 2-3 inquiries a day for my student rental listings. More than that and I know I have priced it too low. Less than that and I need to lower the price.

Pay attention to your response rate. That will tell you what you need to know.

@Connie Tang it would depend on how much the current rents are.

Raising it $100 on somebody paying $3500 = no sweat

Raising it $100 on somebody paying $500 = begging for a vacancy

@Dave Carpenter assuming my market and lenders, it would be based on sales comps/square footage it were 1-4 units. The rents would have little or no impact, unfortunately.

I think this would change with 5+ units and a true commercial appraisal that was done with an income approach.

I hate that this is the case but from a lender standpoint that can't assume it's highest/best use.

Patricia, this is fantastic advice. Especially the part about signing the lease last. Learned that the hard way.

Also, you are an excellent writer! Perhaps you moonlight as a copywriter? 

@Chris Carruth this only my experience in my market but I would finish it. Even if I had to borrow more money to do so.

The market is insatiable for a finished product that is move-in ready. I've got a few properties listed for sale that have good upside but nobody wants them because they need work. I can't blame anybody for that because it is hard to find reasonable priced contractors right now, especially for the average person.

You'll sell it faster and for more $$$ if you finish it. I doubt you'll regret doing so.