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      10-20-2011, 11:52 PM   #1
hl0m4n
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Question Those In Real Estate & Renting Condo...

im looking for a place to buy and rent out on the hudson. large portion of the condo will be paid with a small mortgage to be paid off within a few years with the rent coming in.

after mortgage is all paid off we want the place to be ours. so basically we want to the renter to GTFI, rent, and GTFO . after that we will decide if we want to continuing renting it or use it for ourselves.

with that being said our ultimate goal is to have the place in the condition we left it to the renter for us to use. so for those renting out properties or have experience in real estate, i have a few questions for you.

and yes although my parents have their real estate guy, etc i want to get my own feedback as well and we all know the community here is vast and i learn a lot here believe it or not.

feedback much appreciated, thanks guys .

1. 2 bed room or 1? if i rent out a 2 bed room i can see there could be a greater demand to the 1 but my biggest thing about this is if the guy sub rents it. having another guy in your place can be like a dorm room environment and more people the greater chance for trouble such as damages, etc. if damages are caused by the sub rent, is the primary guy responsible? you could state in contract no sub rent but i doubt they will follow that if the renter thinks he can manage.

2. what are your thoughts on pre construction condos? the building is a WIP and the floor plans are there with a demo room available for show. area is good, view is good, etc but it is a pre construction. i understand there are risks involved from not finishing to changing price, etc but how would you determine if it is really worth the investment? the savings is huge and it is a new condo but there is no guarantee if the value will go up once completed or if it will even be completed.

3. how did you select your tenant? personal, just credit check, online site and how did it work out? is there anyway to further safe guard us on the renter just bailing?
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      10-26-2011, 02:02 PM   #2
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Hi.

I own several condos that I rent out to college students. Best investment ever! The more bedrooms you have, the more rent money you can charge. Always go for extra bedrooms. You can stipulate whatever you want in your lease. My tenants are not allowed to sublet. I use a standard lease and add my own addendum items. Whomever is listed on the lease is responsible for the damage.

One of my condos is a 3 bedroom. It is rented out to three girls. I will have one set of parents on the lease. I will never have a student on the lease! This one set of parents wanted the other 2 girl's set of parents on the lease as well. Talk about getting into a mess! I told him he can write out his own legal document stating that their daughters are responsible for whatever damage they cause, however, I will only have one lease with one person on it.

You need to make a visible presence at whatever piece of property you are renting out. This way, it will make it much more difficult for a tenant to sublet when you don't allow it. I actually drive to my properties every month to collect the rent. This way, I walk into the condos and check out the conditions. It works like a charm!!

I could not advise you on pre construction condos as mine were already built!

I am a very good judge of character...especially with the college age crowd. I can basically tell by the time a prospective tenant gets of their car and walks over to me, if I want to rent to them or not. A lot of this has to do with gut feelings. I can tell entitled young adults from honest, good ones. I engage them in a lot of conversation, and you would be surprised at the information they volunteer. Always do a credit and background check. I have a realtor friend who will do it for me and it costs $30. I charge $40 to the tenants and they have no problem paying it. With that being said, I can afford to leave a place vacant as long as I want if I don't find a tenant I like. Thankfully, I have never had to do that, but it does take the pressure off.

You will never have a lack of tenants if you choose property in a "Hot" area. I have people asking me to put them on a waiting list for the following year. i never do that as there is never a lack of students who want to be walking distance to campus. In real estate, it's all about location.

If you have a good lease and a tenant bails on you, you can take them to civil court and sue them for the remainder of the lease. However, you must prove to the judge that you have tried to re rent it.

Hopefully I have answered some of your questions. Feel free to follow up with any others you may have. Carefully investing in real estate is such a great way to make money. My family has been doing it for four generations now. My 21 year old is currently saving up for her first piece of investment property. With a little hard work, the money you can make is unbelievable!
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      10-26-2011, 02:27 PM   #3
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I thought about doing this. How do you guys determine the rent you charge? (Mortgage payment + Assessment Fees + Property Tax + A bit extra)?
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      10-26-2011, 02:58 PM   #4
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Quote:
Originally Posted by mamadub View Post
Hi.

I own several condos that I rent out to college students. Best investment ever! The more bedrooms you have, the more rent money you can charge. Always go for extra bedrooms. You can stipulate whatever you want in your lease. My tenants are not allowed to sublet. I use a standard lease and add my own addendum items. Whom ever is listed on the lease is responsible for the damage.

One of my condos is a 3 bedroom. It is rented out to three girls. I will have one set of parents on the lease. I will never have a student on the lease! This one set of parents wanted the other 2 girl's set of parents on the lease as well. Talk about getting into a mess! I told him he can write out his own legal document stating that their daughter's are responsible for whatever damage they cause, however, I will only have one lease with one person on it.

You need to make a visible presence at whatever piece of property you are renting out. This way, it will make it much more difficult for a tenant to sublet when you don't allow it. I actually drive to my properties every month to collect the rent. This way, I walk into the condos and check out the conditions. It works like a charm!!

I could not advise you on pre construction condos as mine were already built!

I am a very good judge of character...especially with the college age crowd. I can basically tell by the time a prospective tenant gets of their car and walks over to me, if I want to rent to them or not. A lot of this has to do with gut feelings. I can tell entitled young adults form honest, good ones. I engage them in a lot of conversation, and you would be surprised at the information they volunteer. Always do a credit and background check. I have a realtor friend who will do it for me and it costs $30. I charge $40 to the tenants and they have no problem paying it. With that being said, I can afford to leave a place vacant as long as I want if I don't find a tenant I like. Thankfully, I have never had to do that, but it does take the pressure off.

You will never have a lack of tenants if you choose property in a "Hot" area. I have people asking me to put them on a waiting list for the following year. i never do that as there is never a lack of students who want to be walking distance to campus. In real estate, it's all about location.

If you have a good lease and a tenant bails on you, you can take them to civil court and sue them for the remainder of the lease. However, you must prove to the judge that you have tried to re rent it.

Hopefully I have answered some of your questions. Feel free to follow up with any others you may have. Carefully investing in real estate is such a great way to make money. My family has been doing it for three generations now. My 21 year old is currently saving up for her first piece of investment property. With a little hard work, the money you can make is unbelievable!
I stopped reading after you talked about nickel and diming your prospective tenants for $10.00. Typical landlord.

Lots of good info I am sure... But gimme a fucking break.. Charging them 40 for something you get from a friend for 30... Must be wonderful living for a landlord that wants to stop by and look inside the apartment you're renting every month..
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      10-26-2011, 03:15 PM   #5
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Quote:
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I stopped reading after you talked about nickel and diming your prospective tenants for $10.00. Typical landlord.

Lots of good info I am sure... But gimme a fucking break.. Charging them 40 for something you get from a friend for 30... Must be wonderful living for a landlord that wants to stop by and look inside the apartment you're renting every month..
Especially in college, fuck that.
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      10-26-2011, 03:23 PM   #6
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Quote:
Originally Posted by NYCGP View Post
I stopped reading after you talked about nickel and diming your prospective tenants for $10.00. Typical landlord.

Lots of good info I am sure... But gimme a fucking break.. Charging them 40 for something you get from a friend for 30... Must be wonderful living for a landlord that wants to stop by and look inside the apartment you're renting every month..
I can come back with a lot of "Not so nice" answers to your not at all nice post. However, suffice it to say that renting is a business. My tenants and I all have a wonderful relationships and I hardly have to advertise my rents as they refer their friends to me! The extra $10 I charge doesn't come close to paying for the time and mileage involved in getting the credit and background check done. Perhaps when/if you become a landlord, you will reconsider what and how you posted to me.
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      10-26-2011, 03:23 PM   #7
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Especially in college, fuck that.
i wouldn't like being inspected either but honestly can't blame him for wanting to check up on his investments. whenever my fraternity rented a house, the house got trashed. it was inevitable.
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      10-26-2011, 03:28 PM   #8
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Especially in college, fuck that.
I am sure all of these negative posts come from renters and not landlords. Even though by law I can enter my condos to check on upkeep, I NEVER invite myself in. I knock on the door, and they invite me in. Some actually go as as to offer me a soda or to show me some new furniture they have gotten. You must have had a horrible experience with a landlord, and for that, I am sorry.
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      10-26-2011, 03:30 PM   #9
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i wouldn't like being inspected either but honestly can't blame him for wanting to check up on his investments. whenever my fraternity rented a house, the house got trashed. it was inevitable.
I get the risk vs reward. Riskier to rent to college students. Reward is constant stream of prospective tenants who are willing to pay top dollar for prime apartment location.

Mama dub, on a bunch of cold medicine right now... Don't mind me. I will say though, if there isn't smoke coming out of the apartment and my rent is on time every month.. Leave me alone.
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      10-26-2011, 03:34 PM   #10
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i wouldn't like being inspected either but honestly can't blame him for wanting to check up on his investments. whenever my fraternity rented a house, the house got trashed. it was inevitable.
Thank you but "Him" is a "Her". I think my tenants and I get along so well because we share mutual respect. I know they are going to have parties and I really don't care as long as they don't trash my property...and I tell them so. I had a four bedroom rented out to four boys who played beer pong inside instead of on their patio because they were under age and didn't want to get an MIP. Needless to say, when they spilled beer, it made the grout on the floor disgusting. I told them how to clean it and recommended going to the dollar store to buy a few shower curtain liners to put down first. The problem was solved....with mutual respect. When they moved out they got their full security back and they recommended the next tenants!
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      10-26-2011, 03:43 PM   #11
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I thought about doing this. How do you guys determine the rent you charge? (Mortgage payment + Assessment Fees + Property Tax + A bit extra)?
Your location plays a huge role in the rent you can charge. For instance, if you took my condos and plopped them down somewhere else in town, I could never get the rents that I get in my prime location. Not only am I walking distance to campus, but there is a light rail and bus stop within a minute walk. With that being said, you need to know the rents charged by your competition. A good Realtor can help you out with that. Your equation is not a bad way to start. You always want to buy a place where you can make money, not just break even. Don't forget to include insurance in your equation as well as sales tax if your area charges that. I actually have to pay sales tax on all my rents every month. You also have to put a little away each month for repairs. However, the main item you need to make sure of is, can you carry the mortgage on your rental if it's not rented? If yes, how long can you afford to do so?
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      10-26-2011, 03:43 PM   #12
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Quote:
Originally Posted by mamadub View Post
I am sure all of these negative posts come from renters and not landlords. Even though by law I can enter my condos to check on upkeep, I NEVER invite myself in. I knock on the door, and they invite me in. Some actually go as as to offer me a soda or to show me some new furniture they have gotten. You must have had a horrible experience with a landlord, and for that, I am sorry.
That wasn't negative towards you, just stating as a college student that has been in school a few years, I would hate the once a month visit. No telling what would be on the floor when you walked in, I would only rent from people I know also partied in college and know what it's like. College is a place of experimenting, and doing things you wont get to do later in life.
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      10-26-2011, 03:47 PM   #13
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I get the risk vs reward. Riskier to rent to college students. Reward is constant stream of prospective tenants who are willing to pay top dollar for prime apartment location.

Mama dub, on a bunch of cold medicine right now... Don't mind me. I will say though, if there isn't smoke coming out of the apartment and my rent is on time every month.. Leave me alone.
NYCGP..!! I have a migrane right now and thus can't believe I am being so nice to some rude posters! I just see where investing in RE has made my family successful for generations. I am always asked questions about renting and I am always happy to help out those interested! Hope you feel better soon!
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      10-26-2011, 04:01 PM   #14
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Quote:
Originally Posted by mamadub View Post
Thank you but "Him" is a "Her". I think my tenants and I get along so well because we share mutual respect. I know they are going to have parties and I really don't care as long as they don't trash my property...and I tell them so. I had a four bedroom rented out to four boys who played beer pong inside instead of on their patio because they were under age and didn't want to get an MIP. Needless to say, when they spilled beer, it made the grout on the floor disgusting. I told them how to clean it and recommended going to the dollar store to buy a few shower curtain liners to put down first. The problem was solved....with mutual respect. When they moved out they got their full security back and they recommended the next tenants!
my bad, didn't pay much attention to your handle. i auto assume everyone on here is a man; and i'm right about 99% of the time.
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      10-26-2011, 04:14 PM   #15
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3. how did you select your tenant? personal, just credit check, online site and how did it work out? is there anyway to further safe guard us on the renter just bailing?
Gay men with good credit
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