Should be good...

Question

I think you guys would say this is an OK deal.

College town rental.  15 blocks from the school, rural town.

3 BR-1.25 Bath 
1450 Sq Ft
NO OFFSTREET PARKING (THA'TS AN ISSUE)

Sale Price-40
Closing Costs-3
Rehab-minimal
Total investment-45

PITI for 20 years should be appox. 400 per month.

Could get 350 per room.  1050 per month gross rent.

Looks like it meets the 50% and 2% rule?

Jon Klaus · Answer

Sounds pretty good, but will need a bit more than average management since you'll have 3 different student tenants living together.  Have parents co-sign the leases.

Anthony Nelson · Answer

I own 2 college rentals now and I will agree that they do require more than average management. I do not see the turnover issue that most people think of. In my area the leases are 12 months leases so you dont have that issue. You can also usually find friends of the people who lived there that will move in as soon as they are gone.

Sharad M. · Answer

I agree with Jon that it will need more than average management. Another thing that I will factor for is more than average turnover. I usually account for one month of vacancy, but for this one, I will probably do at least 2 months of vacancy, just to be sure.

If your tenants are out of town student, then you might have vacancy during summer if they go back home for the summer, something to keep in mind.

Good luck!

Mitch Kronowit · Answer

I got this suggestion from an investor who rented to college students:

College kids, especially boys, are filthy pigs (actually, pigs are cleaner). Hire a cleaning crew to come in at least twice a month to toss the pizza boxes, chisel the tub and sink down to the porcelain, and scrape the ketchup off the ceiling.

Should be good...

Most Popular Reply