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Im interested in buying and renting out a house. Is there anything I’m overlooking?
Im a twenty year old college student in a relatively small college town. I’m also a brother in a fraternity and last semester, the lease on our house we rented expired. I was looking at property values in the town and I noticed it was relatively affordable. One house in particular which seemed decent was on the market for about 125k. I figured if I put down the 10k that I saved as a down payment and took on a 15-20 year mortgage, it could be a smart investment. Id have steady tenants since the frat has been around campus for 15 years and since we each living in the house (5 of us) were paying about 2k a semester,(4k a year) it could be a smart deal. In theory it all seems nice, but am I overlooking anything? Property tax is in the 3k a year range, I would need a special type of homeowners insurance for renting, and I’m not exactly sure what utilities I would need to cover. But is this even realistic?Anything else I’m missing?
first and foremost you need to find out the zoning laws for the property you want to buy.
the next door neighbors might not want delta house so close to them.
and anyone who rents from you would need renters insurance, as landlords insurance will not cover any of the renters possessions
