Home Buying in College Park>Question Details

James Reyes, Home Buyer in 18036

I am looking to buy with the intent to rent to UMD students. What is the best way to go about this? Anything walking distance? townnhomes vs. condo?

Asked by James Reyes, 18036 Sun Jan 23, 2011

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14
James,
That's great, glad you can do that. I stand by my advice. Townhouse over condo unless you just have no desire to either fix or deal with hiring people to fix a townhouses problems. If you need names on any realtors in the area I have seen well the good, the bad and the ugly and you can decide which if any you like. Hope this helps.
1 vote Thank Flag Link Mon Jan 24, 2011
I am not a realtor, I am a mortgage banker so my thoughts may conflict with realtor advice. I would NOT buy a condo if you can afford a townhouse or SFR. For many reasons. I believe that you will have a higher resale value generally when you do sell in the future. The payment could be the same or lower because of the condo fee. I know that your loan will go much easier if you don't have the condo approval for a loan officer to worry about. Believe me there are plenty of people that own condos that can't even sell because of the condo being ineligibile for resale. Plus I think you might get more students to rent than in a condo. The only thing I see as a plus is not having much in the way of repairs for you to worry about. Just my opinion, realtors what say you? Hope it helps though.
1 vote Thank Flag Link Sun Jan 23, 2011
I agree with the other posters about ataying away from Condos. College pak proper as well as berwyn Heights and hollywood are good areas for SFH rentals. When renting to students may i suggest you actually rent to the parents of the student as they will have a stronger incentive to make sure you are paid rent on time. If you need financing for that rental let me know. Thanks Gordon
Web Reference: http://www.sotrustmtg.com
0 votes Thank Flag Link Sat Apr 14, 2012
Hi James,

I work with many investors currently. For each choice there are pro's and con's. When thinking about buying a rental, it's important to think about the potential rent vs. the cost of the property and what your ROI (return on investment) would be.

This helps you pick a property that meets your financial needs.

Then you identify locations that you're comfortable with. Being closer to the campus is better (higher rents, typically), but just as good is being walkable to the UMD Shuttle stop.

I hope you find this helpful.

Thanks,
Chuck
0 votes Thank Flag Link Thu Apr 12, 2012
Thanks Ken I appreicate it. Lately I have seen more and more problems with condos all over the area. As long as the buyers know the pros and cons of what could happen now and in the future. well that is the important thing to me. Hope this helps let me know if you need more.

Thanks,
Web Reference: http://www.monarchmtg.com
0 votes Thank Flag Link Thu Mar 31, 2011
James,

I tend to agree with Brent Mendelson's advice about staying away from condos. Although there are a few condos near campus, the condo fee is high and general upkeep is poor. You would probably only be able to sell it down the road to like minded investors which could limit your buyer pool.

You also run into lending issues for re-sale purposes down the road with condos even if totally fix it up for the market. There are huge delinquency problems in condo associations and even if you are completely current it could severely limit who can buy the condo outside of an all-cash buyer like yourself.

I would go with a single family home in College Park (there are many under $200,000), do a little bit of fixing up and move the students in.
0 votes Thank Flag Link Wed Mar 30, 2011
James,

There is some good advice from the previous answers. Start with talking to a lender, as well as a financial advisor or tax preparer = you will find out what you can qualify for in regards to a purchase amount with the lender and either of the latter two professionals can tell you how the investment will impact you financially (rental income versus tax deductions & write-offs). This is especially good if you are looking for your first investment property.

Next, talk to a Realtor who is familiar with investors and the College Park area. Determine what properties match your purchase price range; evaluate the type of property (including age of the home and possible maintenance issues) for the pros & cons.

During my last year at Maryland, I lived in old Greenbelt which was great for a rental. Inside of 10 minutes to campus but in a quiet, established neighborhood. You don't have to be in downtown College Park to attract the students. Plus, you can possibly pull from the professional crowds heading into Goddard & NASA.
0 votes Thank Flag Link Tue Feb 8, 2011
Hello Mr. Reyes,

There are quite few options available for you. It is question of what do you want to purchase. typically a condo is less maintenance required then a detached home but comes with condo fees. Both are available in the immediate area and accessible by UMD shuttles and public transportation. here is the link http://www.transportation.umd.edu/ for transportation to assist you in the process. If you working with an agent they will be able to assist you in the decision making process for what is best for your needs. Feel free to search for home(s) with no hassle on the site below.
0 votes Thank Flag Link Sat Feb 5, 2011
Just to clarify, I assume it will help that this is an all cash deal.
0 votes Thank Flag Link Mon Jan 24, 2011
Hi James,

I agree, good time to at least see what your options are...secondly, I agree, avoid condos at all costs, condos are like four letter words lately, and hard to finance in many cases.
I suggest you first review all your options in terms of Investment mortgage products, the marketplace regarding mortgage products has really changed over the past few years. Find a great lender and get pre qualified so the numbers are clear to you before you begin your search. Good luck, Jim, HSOA. Go Terps!
0 votes Thank Flag Link Mon Jan 24, 2011
Hi James, there are many potential listings in the surrounding area. If you are not currently working with a Realtor , please feel free to contact me directly so that we can discuss your plans and options in greater depth.
0 votes Thank Flag Link Sun Jan 23, 2011
Get in touch with an agent who can recommend properties in the area, they will be able to give you the best advice on what you will get the most "bang for you buck" with. It also depends on what is out there right now, or your time frame.

I can refer you to someone if you need help finding an agent.

Good luck!
0 votes Thank Flag Link Sun Jan 23, 2011
James;
There is a house going on the market shortly, not on the MLS yet....and is near the campus site.

Please email me and I will put you in touch with the Agent that will be handling this particular listing.

Ania
AniaMiller@kw.com
Web Reference: http://www.aniamilller.com
0 votes Thank Flag Link Sun Jan 23, 2011
Hello James, Am sure quite afew Realtors will bein touch with you shortly. First step is to get a Pre-Approval from a Bank or Mortgage Lender. Good Luck, Allan
0 votes Thank Flag Link Sun Jan 23, 2011
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