Student Off Campus Housing

[Jason Stutenroth]

Thank you in advance for any feedback. This evening I am looking at a 5205 sf, 4 unit (2/1, 3/2, 2/1, & 3/1.5) one block from Penn State Dickinson Law School & Central Pennsylvania Youth Ballet in Carlisle, Pa (Cumberland County). Currently 3 of the 4 units are occupied grossing $2240/mo income. From the initial assessment of this property the property expenses are out of balance (i.e. no property management figured, maintenance cost is $500/year, fuel costs of over $4000, along with some other similar items) not to mention some deferred maintenance on the property as well. The potential gross income for this property for this property is $2990/mo if all four units were occupied in accordance to the current rent amounts. So here is where I am looking for feedback; this building has 10 bedrooms and 5.5 bathrooms with laundry hook ups for each unit. I ran an analysis if we were to rent each bedroom at $650 (which is competitive for this market), include all utilities, include the missing expenses from owner's log and furnish each apartment, the monthly cash flow numbers look much better. Has anyone structured their student rental this way?