BiggerPockets

This deal just keeps getter better @ the seller will accept a purchase price of $350,000. Cap Rate = 7.6% and a Cash on Cash return of 11.5% with a down payment of $87,500 and there is more. Take a look, visit my website and go to "local news" for a detailed look at the "Prospectus" on this property.

How about posting the numbers here so we can see them without visiting your site?

Tom, can tell you better about the student housing in Bellingham around Western Wash University.

I know that property is a premium when purchased close to the University of Wash. Most of the time though the numbers make little sense other than as an appreciation strategy, there is usually not much cash flow.

Did I read that the vacancy loss rate was 'zero'?

I've been involved in college rentals for a long time. While vacancy rates can be low they can also be HUGE if you miss the college-year leasing cycle or lose the students during the year. What usually happens then is that the property remains vacant until the next fall semester.

I hope you all agree that the current Real Estate Environment enables a "buy and hold" strategy, its a longer term plan for making money in real estate. The basic idea is to purchase a property at below market value, hold it until the value rises, and then sell it for a profit. This property is at least $100K under market value it initially came on the market @ $550K. The other ingrediant to make this investment strategy work is to have the right demographics of life style and population growth, we have that here in Bellingham. I have confirmation on the numbers from the Property Management Firm managing the property through Nov 2010. Extrapolating for December 2010 the numbers are; Total Income = $29,925, Tot Exp = $5225, NOI = $24,225, Cap Rate = 6.9%, Cash on Cash = 8.9%. This is not a Student Housing Complex situated on narrow street looking at another student housing project. It overlooks Bellingham Bay and the raw land is valued @ $638,750. I will confirm prior years vacancy rate. Students in this housing stay there for 4 years, I would too. Please contact me for any additional information to confirm the numbers.

I don't doubt that the area will appreciate. As an investor though, I have to consider where my money can be parked most wisely. By my calculations cash flow of 5K would be very optimistic.

So, if my cash flow is very poor and at best I can expect future appreciation, this seems like a weak investment and a poor choice as an investor especially since I would probably need to have a property manager handle the property.