Lubbock Rental Valuation Question

[Zachary Slagle]

I am about to sell my investment property. I would normally be a buy and hold investor but I am selling this property in order to reinvest in my new city. This property is unique because it is a single family home where I've been leasing to Texas Tech students for the inflated rents and constant demand. The property is cash flowing with very high numbers but because it is a single family home, I am having trouble with the valuations. I cannot base the value on a cap rate basis and only somewhat off a cash flow analysis. I just listed this property at a 20% cash on cash return. This seems really high but I am assuming this is just how it is with single family investments? Any thoughts, suggestions, or experience with this?