I think this is a great idea in College Station too!!
Avoid short term rentals, you end up with transien tenants and that's not what you want. The joy of investment houseing ownership comes from having good houses and placing good people in the houses.
Several of my listings that have not been able to find a buyer are becoming rental properties. Two things are happening that makes this a good market for such adventures.
1. First time buyers that could have qualified a year or so ago are being locked out of the mortgage market right now with the higher qualifications required (I know some mortgage people can still do a mortgage for anybody anywhere but that's what got us into this mess so i don't recommend it) as a result the demand for decent rental properties is way up.
2. Many sellers, the ones that bought in the past few years or used their house as an ATM are now upside down but the still have to move.
The melding of these two factors makes this a great time to become an investor as long as the cash-flow is positive.
Do not pay utilities. My tenants all are required to pay for it all and maintain the yard and they do, as if it were their own.
JD â€œDanâ€ Weisenburger, GRI
Vanguard Realty, Inc. GMAC Real Estate
We are getting a fair number of people coming in with the same difficulty. I even had one that did manage to sell their home but lost 20K on it in the matter of 2 years. Hopefully the housing market will pick up soon and we won't have as many of these type of situations.
I also think this is a really good idea and I would also consider having it be furnished almost like extended stay hotels. This way people can keep their stuff in storage and it makes the move in and out easier. I agree that corporate housing is super expensive and this would be a great alternative. Best
After traveling overseas and living the ex-pat life with my family for several years, I returned to Houston with an intimate knowledge of what families and professionals "in transition" really need to settle happily into a new city (if even only temporarily).
All of my homes are in the inner loop area and within 5 miles of the medical center, so there's rarely a vacancy and almost always someone on my wait list.
My current and former tenants over the years include medical, business & engineering interns, traveling nurses and PT's, event participants (Rodeo / opera / theatre / ballet / circus performers & staff), cancer patients and their families, interstate & international visiting physicians & researchers, college students, professionals in transition, snowbirds, spouses in transition, business start-up teams, expat families between projects, homeowners undergoing remodelling projects or waiting for completion of their new homes, and the list goes on and on...
Although there's a GOODLY CHUNK of initial inve$tment and ALOT OF WORK involved (LOTS) and NOT a great deal of profit to speak of at the end of the year. Keep in mind the Houston summer utilities for the poor "Yankee folk" (internet & cable, too), contantly refreshing / replacing linens, kitchen items, and not to mention the crack-crazy property taxes, hazard, flood and liability insurance, maintenance & repairs (the occasional hurricane), lawn service, etc...
Trust me, THIS IS NOT FOR EVERYBODY. If you're not "handy" around the house, you don't like or don't have time for bargain hunting, if you can't be flexible (schedule-wise and bank account wise), if you can't stand heavy lifting, getting dirty, or whiners-- then, you will be miserable AND IN THE REND and this stuff isn't for you. IT'S ABSOLUTELY NOT FOR THE FAINT OF HEART.
I've learned that when toddlers get brain tumors, everyone's unhappy. And single men start fires in kitchens when they've forgotten that they've store stuff in the oven. BOY! Do I have stories!
Despite all of this, I STILL find tremedous satisfaction serving a wonderful assortment of tenants. Many come back to my homes year after year and refer their friends and colleagues.
I'm more than happy to answer any specific questions on short-term furnished housing. Just ask!
Then there's the wear and tear issue. One great thing about long-term tenants is that you paint and carpet before they move in. Then, when all goes well, you don't have to paint or carpet again for another 5 years or so. And I've had tenants who've offered to paint for free so long as I buy the paint. In a property with a move-in/move-out every month or couple of months, your maintenance costs are going to be very high.
Along the same lines, I've had some tenants who like to plant flowers, landscape, and take care of the lawn. When someone's in a property for a couple of years, it's theirs and there's a pride...if not of ownership, at least of occupancy. If someone's only going to be there for a month or two, I wonder if there'd be the same attitude or involvement.
There's also a question about zoning and about neighborhood restrictions. At some point, a "short term" lease may put you into another category, not just plain residential. And townhouse and condos are likely to be much stricter on frequent turnover of tenants.
Having said all that, it's certainly an interesting idea. And maybe it can work. (I hope it does, if you go ahead.) But just be aware of what you may be getting into.
Hope that helps.
If they need to be qualified I am not only a realtor but a loan officer.