if i may allow to add some points here..

1. rental income is a very good source of passive income. make sure you start with a +ve rental income properties.. it depends on the calculation model.. if you can make a profit with 10 month's collection to cover all the cost for the whole year.. that's a good model to start with (basically, the 2 month is the vacancy gap cost)

2. renting to students may not be the most ideal tenants to choose.. you'll get a whole lot of damage and may have to spend alot of time to coordinate rental collection.

3. and if those students are your friends.. it will even cloud the situation further.. you've to be certain that everybody understood their contribution/obligations.. "friends are friends but business is business" if you can't make the call, be prepared for leakages to your profit..

4. have you been a RA(residence assistance) before? that would certainly help to run such a setup.. student rental (with stay-in landlord) properties.

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Added on September 24, 2007, 3:05 pmbecareful with sub-leasing.. it's not a given, if you rent a place.
some tenancy agreement forbids sub-leasing.. (i have such clause with the tenancy agreement that i conduct with my tenant and i explicitly voice this as pre-agreement to lease)

if you're the leasor.. you wouldn't want a sub-lease on your rental properties as it complicates responsibility and accountability.. and to some extend, collection.

This post has been edited by lwb: Sep 24 2007, 03:05 PM