Single Family Student Rental Investment with $1,300.00 monthly Cashflow

[Jose Bernard]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $285,000
Cash invested: $68,333

Off market 5 bedrooms 2 bathrooms deal, 1 mile away form a large University, currently rented to students for $4,000.00, and cash flowing $1,300.0 a month.

What made you interested in investing in this type of deal?

I was interested in the deal because it was in a great location/neighborhood, cashflow was great, and the ROI was great as well.

How did you find this deal and how did you negotiate it?

This was an off-market deal, I found it through social media. I connected the with the owner through Facebook. He is an investor as well, and he was looking to do a 1031 exchange to get into a larger property. We were able to negotiate the deal in a way that it was profitable and beneficial for both of us.

How did you finance this deal?

I went on the deal with a partner, and we did a conventional 20% down loan with a 6.9% interest rate.

Lessons learned? Challenges?

The biggest challenge was getting through underwriting for the conventional loan. It was challenging due to the number of mortgages my partner and I already have under our names, and that neither one of us has a W2 job as we both have a decent income coming from our real estate portfolios. Fortunately, we were able to get the loan at the end.

[Dan Kennerson]

Looks like a great deal. 

How much are you setting aside for vacancy over summer? 

What's your plan for CapEx?

Are you doing your leases to leave the property vacant over summer or doing a yearly lease?