Rent by the Room - Student Rental!
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $559,000
Cash invested: $41,500
Rent by the Room Student Rental in a College Town! Seller Carried the Note at 5% with $35k down, and gave $4k in credit toward closing costs. 6 bedrooms rented for $775 - $900 per room for a total of $4,820 per month. Creative Finance & Relationship based deal for the win!
What made you interested in investing in this type of deal?
We own several students rentals in and around George Fox University, and this property is right across the street from the Unviersity. Walking distance to classes, and closer to classrooms than most dorms on campus.
How did you find this deal and how did you negotiate it?
For Sale by Owner - Knew the Owner from years past and called him to see what he was looking for and if he would be willing to carry the Note.
How did you finance this deal?
Seller Carried Loan Amount of $524k at a 5% Interest Only Monthly Payment
How did you add value to the deal?
Renovated the bedrooms & upgraded all systems. House had been rented to astudents previously for $2,600 per month, but we renoated rooms and put 6 new students in the home totaling $4,820 per month.
What was the outcome?
Cash flow of $2,208 per month and Appraised Value of $635k! Purchased for $559k.
Lessons learned? Challenges?
Relationships are even more important than the deal itself. Your Network = Your Networth.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I negotiated the deal directly with the seller. I would recommend Grant Schroeder for all Lending Needs :)
