I am a new investor and see the opportunity to purchase a rental property. My girlfriend and two of her female friends are looking for a place to live outside of the dorm buildings. I see the opportunity to purchase a townhouse, or single-family home with 3 bedrooms for them to rent out. It is in the Kenosha, Wisconsin area and the area is slowly but surely becoming more and more popular. So I am seeing the potential for cash flow through the rent and also building some equity in the property in a hopeful increasing market. Then I plan on selling it once they’re done with school. If my vision is distorted please let me know.
Im looking for some suggestions on how I should approach this whole situation. Anything can help.
If you can buy right (especially if you can use OPM!) and cover all of your expenses (PITI, management, repairs, etc.) by renting to your girlfriend and two of her friends so they don’t live in the dorms, why would you sell it after they’re done with school? Why not keep it and continue reaping the benefits (cash flow, appreciation, tax advantages)?
It most definately sounds like a good investment opportunity. However, life experience has told me to keep business and relationships (friends, significant others) completely apart. What if you and your girlfriend break up? Right now it may not seem possible, but if you break up eviction is going to be pretty hard to do (considering emotions taking place) and you are going to be stuck paying the bill. I would rather rent it out to other people besides loved ones / friends. Once emotions start getting involved with business then it becomes a big mess. I would jump on the property if it is a good deal, and reconsider the renters.