Am I missing something ...

[Mark Erickson]

Hey Everybody. I’m looking to purchase my first investment property soon. Finally saved enough to do so. The area that I am targeting is primarily student housing right near a university. The thing is. It seems too good to be true (which usually means it is... right?) I’m seeing 1-2% rule applied pretty easily (some approaching 3%). For example, just went and saw a 2 unit place. Listed for 129... would rent as is, but needs some work, for at least 2100$. Others in the area are similar... some turn key...wIth room to expand... any advice for a newbie? I don’t want to let my cold feet as a fIrst tIme buyer prevent me from jumping In What am I missing.

[James Galla]

You're missing the extensive damage that students cause to properties. My old landlord pulled in $60k/yr in gross rent for a single house broken down into 3 units. The problem is that people run through doors, jump through windows, and drop out of school mid-way through the rental term. Regardless, they can be very profitable.