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Jean:
If you are sincere in living there, why not take a trip to the area and see first hand the properties they have up and going and the ones they have under contract or are working on now.
I would want to talk to each member of the group to see if they are all satisfied. What type of return are they talking about? What type of paperwork is used for these deals?
Who is responsible for the day in and day out management of the rentals, and the rehab work?Just a few of MANY questions you want answered.
Don Wede
Jean,
Sounds like you have a buyers list of people to wholesale some of these houses to.
How far away is it?
Sounds like you found your niche!
Jackie
Don
I have seen the area–it’s amazing what the guys are doing. They are very happy with the returns. There is a woman who manages everything and they also have very good contractors that are doing the work. they want all the properties to look good. I’m suppose to look at the paperwork next week. Only thing I dont like is I have to put close to 50k cash in the deal unless I partner with someone. I saw a house yesterday that was sold for 5k. It is just beautiful. Georgeous woodwork, beveled glass. It will take about 45k to fix up but it will be a beautiful house when completed.The university is growing and they are adding additional doctorate programs. Many students are coming from other countries and other parts of the country. I guess the tuition is lower and so is cost of living which makes it attractive.
Thx for all your suggestions.
Jean
Jackie
It is only about 8 miles north of where I live. It use to be the area where all the wealthy people lived when Youngstown was booming with all the steel mills. I like the idea that thie investors are interested in revitalizing the area. There is a very large park in the area that is very pretty. It’s also close to a hospital, so good area for medical professionals.
I appreciate everyones feedback.
Jean,
In the mid 1970’s I began purchasing older, neglected single family homes near campus. We would renovate them and then rent them to college students. With time, the stock of older properties has diminished and the prices have become unreasonable. In recent years, we have been building new rentals, primarily 6-BR homes on pilings along the river.
We rent to the students with 12-month leases beginning on June 1st. We vave virtually no vacancies and have lost very little rent over the years.
For us, the student rental market has been very profitable. It is however, a management intensive business. Good luck.
Bill Stearns
There is a small group of investors purchasing old Mansions near Youngstown State University. They are usually 5-6 bedrooms and purchase price is under 10k. They need about 40-45k in rehab costs. They are renting to college students for $300 per room with a very strong rental agreement.
They must rent for 1year, the 5 people have to be friends and if one moves out the remaining have to make his pmts. until someone else is found and the parents sign for damages.Is anyone doing this type of investing?
The investors include 2 from california, 1 from Arkansas, 1 from New York and 2 from Youngstown. They are buying as many houses on one street as possilbe and then moving to another street. This is an old historic area of Youngstown and they are leaving space for small parks/gardens, etc. They work closely with the city and are trying to make the area an official Historic District.
Two of the streets are going to be for university students and the remainder of the area SFH.
I was thinking of investing in the area. Actually I would love to live in one of those mansions–they are absolutely beautiful.
Thx for any comments or advice.
Jean
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