Quote:
Originally Posted by Jordan's World
I'm in a very similar position myself and think it's a brilliant idea!
I'm still in college, so it wouldn't be anything fancy, but I'd really like to buy a fixer upper duplex or single family and rent out the unused unit/bedrooms to students. I'm single and need to be close to my University for grad school for the next 4 years, so wouldn't have any problem finding tenants. (Would prefer grad students as well).
I have looked at a few places already, and the numbers make a lot of sense, here in central FL at least. To give you an idea, single bedrooms are renting for $900/ MO near the University and I can probably get my mortgage down to around that with 20% down.
The problem is even though the numbers make sense for my use I still feel like stuff is overvalued right now, so I'm being patient and will continue saving.
There's always deals out there, so I'm constantly searching Zillow and Redfin hoping something will pop up, but so far nothing fits the bill. I also have a realtor friend who has been sending me stuff off the MLS daily, but so far nothing in the right location.
I have a decent amount saved from working throughout school, so just trying to be smart with it and hopefully it will pay off in the long term.
|
Cost is the main concern. I looked at some duplexes and quadruplexes and they are $1.5M - 2.0M. Let’s say a duplex around the $1.5M would require a monthly flow of $8K to even make sense because mortgage payment would be around $8K a month. Can rent one out for $3K or higher depending on area. That’s still a lot of money to shell out per month. In that case it doesn’t make sense. A quad, if it’s not much more and yields 2 additional units at $3K a month makes more sense.
Or a single family home around $1-1.2M with roommates. Assuming 4 bedrooms, 2-3 baths, each pays $1500 for a bedroom or $1800 for a master bedroom would yield $4,800 a month. Mortgage payment should be $6K or so which means you’ll be putting in $1,200 a month for a master bedroom. That makes much more sense. Of course a Duplex, quad, or sfh that’s generating positive cf is more desirable. That comes down to price and down payment.