Rooming house with crazy cash flow ??

[Rick Santasiere]

Happy Thanksgiving all!

I am a CT investor, and have been having a difficult time locating a property that meets a lot of the criteria we all tend to use for multi family properties.  I found an interesting one that is zoned as a rooming house WITH a 3 bedroom apartment on the first floor.  There are 10 rooms that can be rented, as well as the apartment generating $1,500/mo.  Rooms are going for $180-$200/week.  I like the stability piece in the first floor apartment at $1,500/month, which should cover all expenses on the property (except debt service)

Does anyone have any experience with these? I understand there may be some more management intervention and some extra administrative duties, but the cash flow seems great. Would love to hear some pro's and cons' and hopeful that someone out here had some experience. NOI appears to be around $70k and there is an opportunity for owner financing (about 60%). Just some background:

-  Near an extremely good Law School

-  Super Location in a major city

-  Parks and restaurants galore!

-  Hospitals

-  Seminary close by

-  Some major Insurance Companies a few blocks away.

I would like to thank you all for taking the time in reading my post, and sharing your experience if you have any.  Again, wishing you and your families a super Thanksgiving!!

Rick S

Santa Realty

Property Management / Sales