My first deal - student condo in Harrisonburg VA

[Josh Gordon]

Hey everyone - first post! About 1 year ago I stumbled upon BP and since then have been educating myself so that I can do my first deal. I'm 25 and have been saving. I've decided to purchase a condo that in Harrisonburg, VA (4bd, 4ba). This will be rented out to students by the room for a total of $1800. Cash on Cash is 10% , cash flows at $390 a month after all expenses taken into account. I know that if I identified a deal that was BRRR or maybe in a different market or lower class neighborhood, I might be able to find a deal that has better numbers from a cap rate or cash on cash, but I think that this is a great first deal since I understand the market (went to school there), know how to find students to live there, and I can make this happen NOW.

Any thoughts or advice on college rentals? Any thoughts on the numbers described above? At the end of the day, I know know that after 10 years my profit (assuming it stays rented and appreciation is 1% per year) will be double what i would get in the stock market at 7% YoY returns. So it seems like a no brainer. 

Drop a comment below if you've got any first deal advice or tips on self managing college rentals. Appreciate it!

Hoping to look back here in 10 years and see how far my investing has come.

Josh