Appraising/financing student housing

[Rocco Maue]

Hello, I am considering pursuing single family homes and renting them to college students by the bedroom. One of the houses I am looking at was renovated into a 6 bedroom single family home and is rented to college students. Some of the surrounding homes are also rented to students, but others have “regular” tenants. The 6 bedroom home would be worth roughly 200-250k based on the market and surrounding homes, but when you consider the revenue it generates when rented by the bedroom, it may be worth twice as much. This house is not for sale (yet) but conversations with the owner seem to indicate that they would ask for 400-500k. My question is, if I were to try to obtain a bank loan to purchase the property, would the appraiser take into account the revenue generated by the property when rented to college students? In other words, would it be possible to obtain a mortgage for 400k on a property like this, or would the bank only be willing to finance 200-250k? I am considering pursuing seller financing for this reason.