Fayetteville, AR - College rental - buy & hold investment
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $366,500
Cash invested: $73,300
Investment property near the University of Arkansas. Built in 2020, should be minimal upkeep for a few years. 4 bedrooms are leased to college students. The monthly rent is 2,800 ($700 per student). This investment has a cap rate of 6.88%. The cash-on-cash return, after a 20% down payment, is 10.11%. Monthly cash flow after expenses is $660. Couple these returns with the high appreciation rate of the area (NWA experienced 14% appreciation rate during 2021) and it's a good one!
Lessons learned? Challenges?
There is a higher monthly HOA fee that cut into the monthly cash flow a bit. This HOA fee is to completely take care of everything outside the home, good for college students and the preservation of the curb appeal and value of the investment.
Atta girl, @Sarah Bull, and a big WPS to you!
Who was the builder on this cash cow?
Thanks Will! Builder was Trademark Homes.
Awesome! How was your experience with them overall?