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Purchasing an investment rental close to a university

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  • Oct 3rd, 2014 1:50 pm
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[OP]
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Apr 30, 2010
30 posts

Purchasing an investment rental close to a university

Has anybody had experience doing that?

I'm relatively young (25) and plan to move out of my parents house. I was thinking of purchasing a house close to a university, renting out the rooms while living in one of them. Living in the house will make it easier to manage the property and allow me to live rent free while making a return. What do you guys think? Good/bad idea?
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Aug 20, 2005
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Do you have income to support your mortgage? Who will pay the down payment?
I believe it is a good idea.
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May 28, 2012
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Saskatoon
I don't know about your city, but in ours, properties near the university are much more expensive than similar ones elsewhere...the proximity seems to be factored into the price, so not sure if you are going to get one that is affordable unless money is no object.
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Feb 6, 2012
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Hope you know how to screen out Partying folks
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hope you rental income has enough to offset any major damage to your house after they are done renting.
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Aug 22, 2003
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Around here there are many, many student rentals sitting with empty rooms. Schools have been actively building residences resulting in more supply than demand now. Lots of investors have been selling off the last couple of years...
Thinking seriously about the 4 S's...Sun, Sand, Surf and ... Booked for Sept in Mexico and booked Samana DR for Jan!
[OP]
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Apr 30, 2010
30 posts
CSK'sMom wrote:
Oct 1st, 2014 7:39 pm
Around here there are many, many student rentals sitting with empty rooms. Schools have been actively building residences resulting in more supply than demand now. Lots of investors have been selling off the last couple of years...
That's a good point. I will probably have to do some research with regards to vacancy rates in the area.
[OP]
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Apr 30, 2010
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raccoon wrote:
Oct 1st, 2014 4:23 pm
Do you have income to support your mortgage? Who will pay the down payment?
I believe it is a good idea.
I'm planning to put over 20% down to offset the fact that my income isn't that great (self employed). I've heard that I might be able to use potential rental income as a way of getting approved for a mortgage but I'm not sure how true that is.
[OP]
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Apr 30, 2010
30 posts
Mars2012 wrote:
Oct 1st, 2014 5:20 pm
I don't know about your city, but in ours, properties near the university are much more expensive than similar ones elsewhere...the proximity seems to be factored into the price, so not sure if you are going to get one that is affordable unless money is no object.
You're right, I noticed that while doing my research. I'm planning to purchase the property in Hamilton so even with the inflated prices the cost is still fairly reasonable (compared to Toronto, where I live).
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Mar 31, 2009
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I think it's an excellent idea.

Hopefully make it so that you could afford all the bills off your working income anyway though, so that if you had to go a few months without being able to find any tenants, you wouldn't be in a horrible situation. And then once you do have some tenants, put some of the money aside as an extra large emergency fund for if tenants moved out and it took you a while to replace them.
Jr. Member
Apr 13, 2005
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I think that's a great idea if you can afford to. But research the demand in the area. Here in Toronto property around the University's downtown are expensive. Anywhere downtown. Hopefully Hamilton is cheaper.
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Feb 2, 2014
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Born and raised in Toronto and went to Mac for university. Properties are expensive in Westdale. But if you go west, you can get better prices. That's where I rented when I was there.

Also, make sure you pre-approved first for the mortgage.
Dmagal wrote:
Oct 1st, 2014 7:59 pm
You're right, I noticed that while doing my research. I'm planning to purchase the property in Hamilton so even with the inflated prices the cost is still fairly reasonable (compared to Toronto, where I live).
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One of the perks, in many areas, of renting out rooms and sharing living spaces is that you have more rights as a landlord because (again, I cannot say in every region) you do not fall under the landlord tenant act. You can boot people out much, much easier.

If you are going to have roommates, keep in mind they are renters and will not have the same care and consideration for your property as you do. This is something you have to get over because you may see it all the time. You have to adapt to being OK with this and realizing that, just like as if you were renting out the entire house, there will be wear and tear.

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