Student Housing in Rural Missouri
Investment Info:
Single-family residence buy & hold investment in Fayette.
Purchase price: $125,000
Cash invested: $25,000
5-bed 2-bath single family property across from a small but steadily growing private college.
What made you interested in investing in this type of deal?
Overpriced dorm housing. Relatively cheap properties throughout the town.
How did you find this deal and how did you negotiate it?
Off-market deal was found through connections at the local bank.
How did you finance this deal?
Conventional Mortgage through Commercial Trust Company, a local community bank
How did you add value to the deal?
Rehabbed the Kitchen and Living rooms to increase the appeal.
Offer different payment plans to students.
What was the outcome?
One of the best looking student housing in town with a prime location.
Lessons learned? Challenges?
Focus more on what provides the best return on investment during a rehab.
Having the essential systems (Foundation, Roof, HVAC...) maintained and in great conditions is more important than the visual appeal of the property.
