Pros and Cons on Rooming/Boarding House Investment

[Jacquie Hannibal]

Hi there,
I'm a new investor, have not made a first purchase yet, still exploring and learning.

Thank you to everyone for being so open and sharing - makes it less overwhelming to learn!

I'm wondering if there are any opinions (or facts?) on investing in a boarding/rooming house. I'm looking for buy and hold for passive income.

There is a 13 unit property with 1 common kitchen and living room, 3 shared bathrooms. The rest are just bedrooms. Its located in the university district so "easy" to rent to students.

Asking price is $1,350,000.

Income:
Rental income $90,000
Parking income $1,600
Laundry income $1,250
Utility reimbursement $9,100
Signing fee income $750

Expenses:
Maintenance $5,600
Cleaning $3,000
Insurance $2,600
Taxes $11,600
Utilities $3,500
Gas $1,700
Water/Sewer/Garbage $3,900

Not sure of cap rate for area. sell sheet says 5.17%

I like the idea of one property with multiple rents coming in so there should be less risk to making mortgage payment, fewer kitchens and bathrooms to remodel, one roof, etc. Downside is renting to students and potential to have several vacate around the same time with school schedule.

Anyone with experience in these kinds of property have any opinions?

Any thoughts on an appropriate price range?

I've asked to see rent roll and maintenance schedule for past 3 years. Anything else I should be asking for to make an initial assessment?

Thank you!

Jacquie