College Town Rentals/condos?

[justin]

I'm extremely new to the business as far as doing the deals myself is concerned.  I'm a tax accountant in Dallas and I've seen clients make some money renting.

I have two partners that I went to school with and we have a little money and I started an LLC for us.  We're going to start funding for a down payment and looking for a good property over the next few months.

My thoughts were

1) Look in Waco, close to Baylor, where I went to college.  I know the market fairly well from the lessor side and have a brother there in law school who can do some leg work for me.

2) We looked at one condo, but it wasn't priced to cash flow.  The management fees ($253/month) seemed to be the deal killer, no matter what interest rates/down payment/sales price I ran.  Is this typical?  I know lots of parents buy these for their kids to live in, knowing they're not throwing away rent money.

3) We're not getting into this for the appreciation.  We'd like to acquire many rentals over the next 10 years or so and eventually form a management company of our own.

4) We are also looking at older houses close to campus.  I lived in two, and they are popular for fraternity guys and sorority gals.  I realize, being a college student 3 years ago, that we don't make the best tennants.  However, Baylor has grown and I think we'd have alot less vacancy than going out into a neighborhood here in Dallas.


Any thoughts/suggestions?

[tedjr]

I bought a condo once here in Austin for $16,000. It is a  1 bedroom and rents for $425. It is worth $30,000 today. Even at $16,000 I did not break even. I would still buy a 1000 at $16,000 but not at $30,000. You mat try duplexes and fourplexes if you want cash flow or even a small complex. Try to get a year lease on about everything or at least be carefull in summer and Cgristmas. I owned a 40 unit building on Campus here that were like dorms and all of a sudden we were 50 % vacant and did not know about the Dec Jan break. The next year we were ready and pre leased and offer discounts

Good luck there in Waco

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737

512-301-9171

[akorelc]

Hi, Justin:

I am expecting some information on a cluster of townhouses around SWT to be in a package deal created by my realtor. I know it's at the opposite end from Baylor, but the college rental market looks pretty strong; so, if it interests you, I wouldn't mind sharing the info. A few of my friends and I have a sort of ad hoc, very informal "partnership" and don't mind sharing the opportunities with serious investors. This package will probably be a little rich getting into (relatively new properties - 1998); but it might work for the right people.

Alysia Korelc
akorelc@austin.rr.com

[Dretke]

We have a condo in College Station that we built last August.  Our daughter acts as the manager and has 2 roommates.  They both signed a year lease.  We offered a significant monthly discount for a year lease.  Even though our cash flow is a little better than even right now, it sure made a difference on our income taxes!  I plan to raise the rent when leases are up at the end of August.

Best of luck!

DeeDee

[bukzin]

We do college rentals out here in California.
Mostly houses and duplexes very close to the campus.
Lots of demand and lots of management/repairs and high rents.

Take a look at our web site, it may be helpful.

Bukzin
wwwChicoForRent.com

PS  We are always looking for ideas and suggestions.

[StacyKellams]

Justin,

I've only owned one codo., and that was enough for me. I won't buy another condo unless I can get it for 30 cents on the dollar with no repairs.

A little old man I met when trying to sell my condo had  little saying about condo's. He said "Condo's are like herpes, nobody wants them, and you can't give them away."

That's been my experience anyway.

Good Luck,

Stacy

[agkatz]

Dude... you've got herpes???

[StacyKellams]

LOL