Purchasing A College Home. Using FHA Financing.

[Sam Steadman]

BP Community.

I am reaching out for some advice.

Currently, I am looking to purchase a single family home near a college in the Minneapolis/St.Paul Area. I am planning on having it be a owner occupied investment property. I am reaching out to see what all of you think would be a great deal with the information that I have in hand. If you could advise me on a good sales price for a property with the estimated revenues would be excellent! I am sorry for the limited information, but I am in the preliminary stages of looking for a property.

Ideally I would purchase this home within 1 mile of the college... 

-In the city where I am looking to purchase... You can have a MAX of 5 non-related individuals living in one SF home. 

-They have no restrictions or rules stopping investors from purchasing homes around the University. 

-I have access to FHA financing (MIP included :/)

Here are my rough estimates

-Average student rent around the University= $400 + Utilities

-# Of Renters= 5

With that said, with me living on the property b/c of FHA financing...

-I would be looking at a revenue stream of around $1600 (4x$400) monthly and $2000 (5x$400) monthly when I move out after a year.

With that kind of rent income... What would be a good price to purchase a home for? I am willing to buy a fixer upper and put in the sweat equity to raise value. What are your experiences? What are your thoughts? Any advise or thoughts are welcome!