Renting to medical residents/students?
I've been kicking around an idea to get more cash flow in my local area, which I know very well. Specifically in the neighborhood where I live, it is an A-class development of 5-15 year old townhouses. We have a mix of young families, retirees, AND many medical students and residents who work at a major medical center less than 10 minutes away.
Average home value is $170K-$220K for a 2/3 bed, 2/2.5 bath townhouse. Average rent is about $1700 for a full house. So, not ideal for a traditional rental. I should also mention that the HOA is affordable and not susceptible to big assessments. Monthly HOA is about $50-$120 depending on the unit.
So what if I rented out a unit (say I acquire for $170K) and rent it out by the room to only med students and residents. Maybe I can rent each room for say, $700-$800, which would be a total of $2100-$2400...much better cash flow. I was thinking I could develop a relationship with the programs at the medical center as new residents and students come in they could refer them to me as an easy, cheap, and nice place to live with some roommates who work in a similar field.
Most nicer 1 bed apartments in my area rent for $900-$1100, so these tenants might look at this as a steal.
I know there are some people out there who specialize in this niche - can you chime in and let me know if I am thinking along the right lines? Do you typically offer these units fully furnished or not? How do you market to the target tenants? Any tips for management?
Thanks in advance!