Ryan Chaw, pharmacist by day and real estate investor a couple of hours a week, has mastered best practices for investing in student housing. It’s not easy holding down a full-time W2 job and being a profitable real estate investor. However, Ryan has set up systems and processes that make it easier than it should be and shares them in today’s episode.
Ryan was inspired by his grandfather, who invested in real estate and retired early and put him and his brother through college. With this bright shining example, Ryan decided he wanted to do the same while maintaining his full-time job. His first property was a 100-year-old home, which taught him valuable but costly lessons. A huge fail forward, if you will. Today, Ryan owns 4 single-family houses with 18 tenants. His properties are on 15-year mortgages and have positive cash flow by renting the homes by bedroom to college students.
Ryan and I discuss how anyone with a full-time job can easily get into real estate investing using his methods. We cover the parameters of student housing and how to find and screen college students, so you can avoid renting to a potentially problematic tenant. We also cover cash flow and taxes, scaling fast, and using systems to manage your properties.
The first investment of a 100-year-old single-family home; the good, the better, and the ugly
Why renting to multiple tenants is a good idea
Bonus depreciation and cost segregation
Appreciation on the property, Increase in rents (a hedge against inflation)
Cash flow and taxes
Scaling fast, in the beginning, using as much leverage as possible
Using systems to manage your properties
Why college students are his main focus
Tips on renting to college students
What Ryan did to fill his rooms during COVID19
Getting rental referrals
How to make more rental income renting out by the bedroom
Ryan’s strategy on what he will do if the market crashes: Home Equity Line of Credit (HELOC)
How to obtain and use a portfolio loan and a line of credit
The best way to screen college students using Ryan’s Prime System
How to deal with difficult tenants (Hint: Communication)
If you take care of the tenant, the tenant will take care of you.
You want to be as close to the campus as possible, no HOA, enough parking in the area
Deducting most rental income from your taxes
Appreciation of value, cash flow every month, and depreciation.
The best way for a newbie to start in real estate investing
How to set up systems where your tenants help maintain your investment
Diversifying your portfolio investing in different college towns
You can do all the analysis in the world, but sometimes you have to just take action.