I am thinking of buying a house and renting it out to tenants

[gamblore99]

My dads doing very well these days. He has decided he is going to buy me and my brothers each a condo worth 300k canadian when we are ready for it. I am in third year at school and am living in a student house. I am considering taking the 300k and putting it into a student house and living there with other students, most likely friends.

How much maintenance is this during the year? What are possible concerns and profits? I will be studying super hard during the year as I want to get into med school. Good or bad idea?

Oh ya, the money will not be invested in anything other than a house/condo.

[James Boston]

What's the exchange rate for US dollars.

I don't think that matters much to the point I'm making. $300K is way too much to "invest" in a house for college guys to live in.

[vexvelour]

I'm not sure what the fee is, but you should look into having a rental agency lease it out for you. They take a fee and for it they provide all maintence work, replacing of damaged stuff, fix stuff, landscape, etc.

[gamblore99]

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What's the exchange rate for US dollars.

I don't think that matters much to the point I'm making. $300K is way too much to "invest" in a house for college guys to live in.

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From what I understand college houses are super expensive because of they are close to the university.

[dblgutshot]

What city are you in?

[James Boston]

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From what I understand college houses are super expensive because of they are close to the university.

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Okay...where are you? Canada? I don't really know what the real estate situation is there, but that's not the case here. In most college towns I've been in, certain properties become identified as college rental property. The same goes for apartments. Once you start that, you somewhat guarantee that those will be your only tenants for years to come. Also, it's not exactly prime real estate. Again, I don't know what the situation is like where you are, but I would never "invest" in rental property where I live (there is a college here) for the purpose of leasing it to college students.

[gamblore99]

I am in hamilton, Ontario. It is a dirty city, with dirty people, dirty air, and dirty streets.

[dblgutshot]

Yeah your original plan just doesn't sound good at all man. If you really want to invest it in real estate I would find another property and rent it out to soemone else. Renting to college guys especially your friends is just not a good idea IMO.

If you live in a [censored] dying town then I suggest you let your dad handle the money and invest it for you. This is probably the better idea anyways.

[MrMon]

Renters, especially college guys, can trash a place pretty darn quick. Are you prepared to charge your friends when they put a hole in a wall or break something in the kitchen? It's a lot easier to do that to strangers rather than friends.

I can see the arguments already - "Man you don't need $500 bucks from me to fix the bathroom I trashed. You're rich. Your dad just paid $300k for this house."

[klepto]

make your tenants put down one month's rent as a security deposit.

upon the end of the year, add up all damages. most likely they will be more than the one month's rent. if so, ask for two months.