Single Family Student Rental - Turnkey

[Austin Freeman]

Hello BP!

This will be my second door with none of my own money. I am now putting together a deal for two investors and I. They are splitting total cash needed ($55,500) for 20% down on a purchase price of $262,500. It currently rents for $2,350 and there is still a bedroom unused. The tenants will only be in there for a maximum of three years and then I can fill the fifth room and cash flow even more. The cash flow that I came up with is around $710, splitting three ways, which will give each of my investors a 10% CoC return. I will then refinance after 2 years and up the rent once the current tenants move out.

My biggest issue is calculating CapEx and R&M. I have budgeted 10% for CapEx and 0% for R&M, being that this house was completely renovated with all new appliances, deck, roofing, paint, etc. Walking through the house, it seemed perfect. The only near future expense I can see is a water heater as it is about 15 years old. Other than that, nothing at all sticks out (I know there will be some expenses that I don't know about).

Any input at all for how I am analyzing this is helpful! 

Thank you!