Single Family Student Rental Investment with $1,300.00 monthly Cashflow

[Jose Bernard]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $285,000
Cash invested: $68,333

Off market 5 bedrooms 2 bathrooms deal, 1 mile away form a large University, currently rented to students for $4,000.00, and cash flowing $1,300.0 a month.

What made you interested in investing in this type of deal?

I was interested in the deal because it was in a great location/neighborhood, cashflow was great, and the ROI was great as well.

How did you find this deal and how did you negotiate it?

This was an off-market deal, I found it through social media. I connected the with the owner through Facebook. He is an investor as well, and he was looking to do a 1031 exchange to get into a larger property. We were able to negotiate the deal in a way that it was profitable and beneficial for both of us.

How did you finance this deal?

I went on the deal with a partner, and we did a conventional 20% down loan with a 6.9% interest rate.

Lessons learned? Challenges?

The biggest challenge was getting through underwriting for the conventional loan. It was challenging due to the number of mortgages my partner and I already have under our names, and that neither one of us has a W2 job as we both have a decent income coming from our real estate portfolios. Fortunately, we were able to get the loan at the end.