2nd College Rental Property

10 Replies

Hey all, 

I was able to get my 2nd college rental under contract today. It's near University of Cincinnati, right in between the school and downtown Cincinnati. I like this part of town because it's a good mixture of families as well as students. The house belonged to a professor who is moving across country. It's a 4 bed two and a half bath SFH(sold as a 3 bedroom-- I love POCKET DOORS. It has a basement with a music studio I plan to turn into another bedroom, as well as a half bath. The house was built in 1905, all hardwood floors, big kitchen-could use some updating. It has a garage as well with off street parking which is huge in this neck of the woods.

Numbers are below, but hopefully if I can add the extra bedroom in basement I could add $100-$200/month. 

Cheers,

@Jake Walroth I typically underwrite more for vacancy maintenance and capex especially for my student rentals but even so this looks like a smoking deal if you can get $2k/mo! Nice find!

I do to @Aaron Linden . This property is in unusually good shape for homes in this area. It was lived in by a family, not college students, so I don't foresee any major purchases in the near future. I don't plan on spending the profit-rather placing it in an account for my next downpayment. 

@Jake Walroth

Looks like a great find. How much would it cost to renovate the basement? That would only increase your rent by a couple hundred? I was looking at those numbers and I realized there's not really any utilities when it's a SFH.

Who are using for insurance? A local rep? Mind sending me info?

@Alex Brookbank I don't know for the basement. I'm in Portland so I actually had my mom and realtor(cousin) look through this one for me. They said it was a sound proofed music studio.... so not sure, but if it generates an extra $150-$250 a month it'll be worth it. My contractor is extremely affordable so I don't imagine much. That's what's great about SFH's, they're responsible for all utilities, and like my current duplex, taxes cover garbage, so there are very little expenses. Since I just sent in earnest money, haven't gotten to insurance yet... right now I'm using All-State, I'll check around, but typically it's about $60-$75/month for this type.

@Jake Walroth Congratulations! Numbers look great. Was the property listed on the MLS or are you marketing?

@David Frantz I was actually kind of disappointed because I did run a Direct mail Campaign(Read about Here).... but this lead came off the MLS.... I was in Portland as soon as it came on.. called my cousin/realtor and mom to go see it.... they gave it a thumbs off and confirmed 4 bedrooms-2 baths.... it was marketed as a 3 bed.. .but with pocket doors.. it makes a clean 4th....so I Still haven't even seen the place... hoping to tomorrow after delivering earnest money.

@Robert Gunby that is the bigger pockets rental calc.... they have calculators under the tool tabs... they're a tremendous asset..I've used them to bring to lenders, banks, etc..... I usually run numbers on anything I find interesting.... makes spotting deals easier for certain after playing with it for a while 

Originally posted by @Jake Walroth :

@Alex Brookbank I don't know for the basement. I'm in Portland so I actually had my mom and realtor(cousin) look through this one for me. They said it was a sound proofed music studio.... so not sure, but if it generates an extra $150-$250 a month it'll be worth it. My contractor is extremely affordable so I don't imagine much. That's what's great about SFH's, they're responsible for all utilities, and like my current duplex, taxes cover garbage, so there are very little expenses. Since I just sent in earnest money, haven't gotten to insurance yet... right now I'm using All-State, I'll check around, but typically it's about $60-$75/month for this type.

Who's your contractor?

Could you share the index of neighborhood of this students rental? In my area this will cost about 200k.

My purchase prices have been anywhere between 120k- 189k depending on location/size/quality of finish/ etc. 

For example, I bought a house in November 2017 for 120k, required 0$ in rehab and I bought a house for 68k across the street that needed significant rehab... so it depends. 

Jake 

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