Single family by the bedroom
Im stumped on something. I friend of mine wants to sell me his house for $130k. His realtor had an appraiser look at it and said it’s worth $190k. Would it be a good idea to take him up on that and rent out by the bedroom?
Nothing wrong with the house he him and his wife just bought another house because they wanted to downsize since all their kids moved out and wants to be done with the house.
- Marshall University nearby
- 2 hospitals
- nice park
- nice area
- not a flood zone
- main road coming into town is being updated
- average rents for 1BR 1BA is between $550 & $800
Also, would it be possible to cash out refi after a year if I buy that much under appraisal?
That sounds like a great deal! I would ask for the appraisal to make sure and I would work with an agent in your area who is working for YOU (not your friends agent) and will run a comparable analysis in the neighborhood to confirm the deal you are getting.
If that is the case, then YES! House hacking/rent by the room is a great way to go. Make sure to have tenants give deposits and have leases so everything is clear and clean. And if they are students, having a parent as a co-signer would be a grat idea.
Also, check out what the dorms are renting for per semester at Marshall. Usually they share the room so you can charge almost the same because you can offer a room by itself (although the convenience of being on campus is lost).
Then after a year, refi out, rent out the room you were living in and do it again.