Student Housing - Condo

[Esteban Jimenez]

Hello Everyone,

I am currently looking at an off market Deal in Clemson SC. A friend of mine is selling me his 4 bedroom 2 bath condo which is currently occupied. The reason he wants to let it go is because he wants to open up another business in another state and the idea of maintaining a property is just to much of a hassle. 

The price we agreed to is 125k contingent to leaving the monthly payments at $325 per student (4) until august 2022 and contingent to him closing on his new deal. The students also pay the utilities which gets divided at the end of the month. Theres a $167 HOA monthly fee and last years taxes were $1,860.

So now that you all have an idea, my current mortgage guy can get me a loan at 4.875 interest with 20-25% down. Is this a good deal and if not whats the alternative? what banks are you using? I Do have a home and I thought about refinancing or doing a Heloc. I purchased the home last year and added forced appreciation. If I Refi I can probably take out 20k or more if it appraises well.