Wholesale College Town Rental

[Craig Hansen]

WHOLESALE DEAL 

Single Family Rental with a great ROI within steps of ECSU (Eastern State Connecticut University) and just a 10 minute drive to UCONN campus. This neighborhood has many college houses and is easy on the turnover of tenants each year as it is a desired area for the professors, faculty or students. Combined, the 2 schools enrollment is around 40,000 undergrad students

Cape style home sitting on a slab with city water and sewer.  Oil heat which the furnace is in good working order, water heater is electric and 6 years old, roof is an architectural shingle at 12 years old

Rent goes for $450-600 per bedroom in town for college students.  

Purchase price  = $100,000

Rehab Cost        = $15,000

ARV = $135,000-140,000

Yearly Income    = $21,600-24,000

Yearly Expenses = $10,800

GRM = 4.17

Cap Rate              = 13-16%

Scope of work:

Rip up carpet 

Install laminate on the first floor and 2nd floor

Replace shower

4 Flushmount light fixtures

Paint the whole inside

Build 8x8 wall to divide rooms (turn into 2 bedrooms on first floor) that were merged together via closets being ripped out

Power wash exterior

Branch removal on 2 trees

Closing date of 8/20/2018