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Started By
Message
Buying investment properties...
Posted on 6/5/14 at 11:34 am
Posted on 6/5/14 at 11:34 am
I am considering buying an investment property in Tuscaloosa or College Station.
Does anybody here have experience in either location? Any investment property experience in General would be appreciated.
Reasons for Tuscaloosa: I am familiar with the area. Good contacts to keep the place rented out to students. Good location for the price. Growing(but not as fast as CS) low taxes.
Reasons for College station: a lot of students/growing area/a lot of transient workers coming to area for jobs(utility workers/road construction etc.) close to where I live now.
Let me know what you think.
Does anybody here have experience in either location? Any investment property experience in General would be appreciated.
Reasons for Tuscaloosa: I am familiar with the area. Good contacts to keep the place rented out to students. Good location for the price. Growing(but not as fast as CS) low taxes.
Reasons for College station: a lot of students/growing area/a lot of transient workers coming to area for jobs(utility workers/road construction etc.) close to where I live now.
Let me know what you think.
4
Posted on 6/5/14 at 12:02 pm to cjared036
I think any real estate investment in a college area is a bad idea. No way would I invest long term in Tuscaloosa.
Everything is inflated around colleges due to the student loan bubble we are in. Factor that in with the enormous growth we have bad because of Saban, makes me uncomfortable.
Out of state kids will stop coming once the winning stops. The supply and demand factors are just not organic.
Everything is inflated around colleges due to the student loan bubble we are in. Factor that in with the enormous growth we have bad because of Saban, makes me uncomfortable.
Out of state kids will stop coming once the winning stops. The supply and demand factors are just not organic.
Posted on 6/5/14 at 12:04 pm to I Love Bama
I have thought that too.
Posted on 6/5/14 at 12:08 pm to I Love Bama
I assume you were a college student once.
/thread
Also, biggerpockets.com is a good primer for investing. Ideally you want to find a mentor who has been doing this succesfully for years in your location. They will be your best resource.
/thread
Also, biggerpockets.com is a good primer for investing. Ideally you want to find a mentor who has been doing this succesfully for years in your location. They will be your best resource.
This post was edited on 6/5/14 at 12:09 pm
Posted on 6/5/14 at 12:28 pm to RadTiger
I'm not sure what that has to do with anything.
I think college is a waste of time and money for a lot of people. I think the government will stop pumping it up and encourage people to learn trades.
I love biggerpockets. Been a member over 7 years.
I'm speaking to OP as an actual investor. Not a Monday morning quarterback.
I think college is a waste of time and money for a lot of people. I think the government will stop pumping it up and encourage people to learn trades.
I love biggerpockets. Been a member over 7 years.
I'm speaking to OP as an actual investor. Not a Monday morning quarterback.
Posted on 6/5/14 at 12:45 pm to cjared036
I have seen a lot of money made in smaller college communities with off campus student housing.
Just off the top of my head I know of deals in the following towns that print money for their investors:
Monroe, La
Ruston, La
Hattiesburg, Ms
The key is getting low cost funding and the controlling the construction process.
Find a market where student housing has been neglected in campus.
Just off the top of my head I know of deals in the following towns that print money for their investors:
Monroe, La
Ruston, La
Hattiesburg, Ms
The key is getting low cost funding and the controlling the construction process.
Find a market where student housing has been neglected in campus.
Posted on 6/5/14 at 12:49 pm to nelatf
I could see Hattiesburg and Ruston, but Monroe seems too large compared to the other two
Posted on 6/5/14 at 1:35 pm to Paul Allen
Monroe is a bit of a hybrid situation. You have some decent complexes that are a quality mix of students and young families.
The dust from the on campus housing build on UL-M's campus about 10 years ago has settled. There is a need / demand.
There are several new developments planned in Monroe but the demand is more driven by CTL than anything right now. UL-M still pulls students from across the nation for pharmacy school...and they want newer / decent places to live.
The dust from the on campus housing build on UL-M's campus about 10 years ago has settled. There is a need / demand.
There are several new developments planned in Monroe but the demand is more driven by CTL than anything right now. UL-M still pulls students from across the nation for pharmacy school...and they want newer / decent places to live.
This post was edited on 6/5/14 at 1:36 pm
Posted on 6/5/14 at 1:39 pm to cjared036
what's the cap rate strip centers trading for in those area's? with national tenants.
I think it depends on a lot if you can get enough property's to assemble plot that can be Multi-family. Just owning a bunch of crap rent houses in random spots would be slow go imo and having to maintain them a pain. The biggest money being made around campus here is site assemblers as i call them buying up a block and then flipping it to a large multi-family developer. this takes time though.
quote:
I think any real estate investment in a college area is a bad idea. No way would I invest long term in Tuscaloosa.
I think it depends on a lot if you can get enough property's to assemble plot that can be Multi-family. Just owning a bunch of crap rent houses in random spots would be slow go imo and having to maintain them a pain. The biggest money being made around campus here is site assemblers as i call them buying up a block and then flipping it to a large multi-family developer. this takes time though.
This post was edited on 6/5/14 at 1:45 pm
Posted on 6/5/14 at 1:47 pm to trillhog
The term is called "assemblage", and like you said, can take a long time. I know a guy that did it in north Alabama. Bought up shitty shouses for $20,000 - $30,000 and then sold the whole thing to Walmart.
Made a killing.
Made a killing.
Posted on 6/5/14 at 1:51 pm to I Love Bama
i was talking to a guy yesterday that had put together several tracks of land and had been approached to sell to wal-mart and they had the deal in contract and everything and a few weeks before closing they pulled out because one guy next door wouldn't give them engress easement and he lost the whole deal, they bought down the road instead. that would hurt. walmart was paying a premium too.
Posted on 6/5/14 at 1:55 pm to trillhog
I have a couple 30k homes in and around lafayette. I charge on average 650 a month.
I put 6k down(20%) and roughly have a 100/month note. I'm three years it's paid off. For this area there's a huge drop in roi once you start getting into the 80k homes and up. Another reason why I prefer this range is bc expenses to fix things is extremely low.
I put 6k down(20%) and roughly have a 100/month note. I'm three years it's paid off. For this area there's a huge drop in roi once you start getting into the 80k homes and up. Another reason why I prefer this range is bc expenses to fix things is extremely low.
This post was edited on 6/5/14 at 1:56 pm
Posted on 6/5/14 at 2:00 pm to roguetiger15
that's unreal you can get a house for 30k.
Posted on 6/5/14 at 2:01 pm to roguetiger15
Noted and thanks!
Posted on 6/5/14 at 2:03 pm to trillhog
I'll post pics of one my rentals I picked up for $29,000. I put about $5,000 in it and I would absolutely live there.
In Arkansas there is a lot of cheap real estate. You just aren't looking.
In Arkansas there is a lot of cheap real estate. You just aren't looking.
Posted on 6/5/14 at 2:05 pm to roguetiger15
quote:
I have a couple 30k homes in and around lafayette. I charge on average 650 a month
Monthly rent of 2% of the purchase price is the criteria I aim for. Well done.
Posted on 6/5/14 at 2:08 pm to I Love Bama
quote:
In Arkansas there is a lot of cheap real estate. You just aren't looking.
i'm sure there is i just wouldn't want to deal with it unless i knew that there might be a big flip in the end, i like to buy things that have an x factor that somebody might come in and just have to have it b/c of location. I like the triple net commercial stuff.
I just looked there are 4 properties under 50k in fayetteville they are all on the outskirts and rough
This post was edited on 6/5/14 at 2:10 pm
Posted on 6/5/14 at 2:10 pm to roguetiger15
30K purchase price. Are these in bad neighborhoods, small houses, run down, what?
That's crazy to me. Maybe I'm not looking hard enough.
That's crazy to me. Maybe I'm not looking hard enough.
Posted on 6/5/14 at 2:17 pm to LSUFanHouston
It's harder now that the economy is "improving". All of my rentals are under 40k and I would live in all of them except one (rougher part of town).
Heck, I paid 50k for my primary residence (3br/2ba). It was a foreclosure in a GREAT part of Birmingham. I have put about 20k into it and I could sell it tomorrow for $140,000.
Heck, I paid 50k for my primary residence (3br/2ba). It was a foreclosure in a GREAT part of Birmingham. I have put about 20k into it and I could sell it tomorrow for $140,000.
Posted on 6/5/14 at 2:28 pm to I Love Bama
I wish Houston wasnt so damn big. TO buy a property in the $140k range as a primary I would be out in the deep subburbs/ship channel with suspect neighbors.
Not viable for someone in their early 30s/single.
Not viable for someone in their early 30s/single.
This post was edited on 6/5/14 at 2:29 pm
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