I go to Temple University here in Philadelphia and I was considering talking to my dad about him buying/mortgaging a house in which I'll live in my senior year (next year) and then he can rent it out. Temple is buying up a lot of the surrounding area around campus and I think it'd be a good investment opportunity, considering he wants to retire soon. Does anyone have an insight about these types of ventures or has anyone done them before? Taxes in the area are extremely low, like $200 a year around I believe.
Purchasing property is always a good investment if you ask me, if you have the funds and the means to purchase some property it's always good and like everything in life it takes lots of hard work and time sacrificing to be successful, purchasing property is no exception. Well that's just my :2cents:
Rentals are key for making some good money. Eventually if you have enough rental properties and have good management staff for each rental property, you'll be making tons of money with minimal effort (once it's set up).
Yeah, they can be a pain in the ass sometimes, but for the most part..just money in the bank....go for it for sure, dont hesitate! Now is a great time to buy
For something like this, if you are not a hands on type person, you can turn over rental to a rental management firm. They charge about 10% of the rent for doing this. They handle finding renters, getting repairs, etc. You can write off the depreciation of the house as an investment and use that to offset the taxes of the rental income to avoid paying taxes. You also get to deduct the morgage expense as a business expense. The key is keeping it rented and budgeting enough for repairs (roof, heating), paying insurance, etc.
Well I have taken over all of my parents rentals for over a year now. I have 6 houses and then 4 apartment complexes. Rentals can be a lot of work and very stressful at times. One of the hardest things for me is that each person may not live exactly like I would want them to so to speak, but that's what the deposit is for. I have been very lucky and only had one tenant who I had to kick out so far. You can run a credit check for a little bit of money also. Like stated above you need to keep in mind about repairs. Also not sure if there is small acreage, but will you do all the lawn upkeep? I do all the lawn upkeep, and plow the apartments. But the houses I let them worry about plowing. Make sure everything is written in the lease!
be careful to who you rent it out though...sometimes people just stop paying rent, and it takes some time and nerves to kick them out...
Agreed. Speak with Temple about connecting with visiting profs who need a place for a year. Second to that go for the fellowship/graduate student demo. Only rent to undergrads as a last resort, and then look for the ones in a divinity program.
That's what the management staff is for! I would have my management staff make sure the future tenant(s) were qualified to rent the place and that goes along with credit checks.
