Multi Family Deal Working Right Now

[Kyle Griffin]

Hello Everyone,

I'm considering a deal that is with an owner finance structure for a multifamily dwelling. The investment will feature an eight room 1 bath that situated between two big colleges here in Augusta, Georgia. Currently the deal is structured as follows:

Price: $42,000

Down Payment: $4500.00

@ 4.5% with a 5 year balloon.

How would you guys structure this deal and if I am catering to students how would you structure the rent amounts and etc.? 

[Ethan Atkinson]

8 beds and 1 bath sound like a rough situation no matter how you are renting it, whether to a family or students, or anyone.  If you are going to structure it at all to benefit yourself, get the lowest payment possible because properties like this are likely to have high turn-over. If you know the area and you know there are lots of other situations like this with too many beds and not enough baths, then you know the tenants will be understanding, because that's just the way it is in this neighborhood.  Would this place even rent to college students?  Just because it's near a college doesnt have anything to do with students renting.  I am speaking from my experience with Athens, GA.  

Or if you are owner-financing it, and truly taking ownership, turn a bed into a couple baths.  6 beds and 3 baths should rent easier and a much better ratio of people per bath.