My Prospective Property

[Ryan Conklin]

I recently got told my college couldn't house me this year. I was looking around and couldn't find anything to rent for less than 1200 a month, more than my school's housing. I have always been interested in REI and found out about the FHA loan. I then found a property that is 5 beds 1.5 bath selling for 210000. 1000 a month for mortgage and 800 a month for property tax. The house does need some updating. I already have a roommate willing to pay around 900 a month. I plan on finding 3 other students in my position and charging 800-900 a month per room. My one issue I'm running into is how to collect rent. I am not sure if I want them to know I am the owner of the property so they won't try and lower the price or get leniency because they know me. How could I get around this?

My other question is if this is even a good idea. I have 3 years left and the home is valued at 260000 with homes in the area selling for 410000.  I believe the necessary updating, etc. Will bump value towards average and after 3 years I can refinance or sell for around 390000.

Thanks!