Student Rental Deal Advice

[Joshua Swart]

Hey BP!

Got a question on student rentals for those that have experience in this space. Came across a fourplex in Salisbury, NC that is right across the street from a college. House is move in ready and needs very minimal work to get renters in. Numbers look really good and all 4 units will be vacant by closing. Was able to settle on a price with the seller but before we put it in writing I decided to do a little deeper digging into the situation. 

Purchase 

$207,000

20% down

closing costs, repairs etc... $8710

Rental Income	$2,800.00
Vacancy	$140.00
Management	$280.00
Repairs/Maintenance	$280.00
Capex	$280.00
Insurance	$150.00
Lawn Care/Snow	$100.00
Electric	$0.00
Water	$0.00
Gas	$0.00
Garbage	$0.00
Misc.	$0.00
Monthly Cost	$1,230.00
Mortgage	$1,038.98
Cash Flow	$531.02
Annual Cash Flow	$6,372.28
Cash on Cash Return	12.26%

3 Units were on the market for quite some time because previous owners did not want to rent to students, but they did not get any interest. Sounds like student rentals are pretty much the only option considering the location. However, school starts in 10 days, which means most students should have housing already. Considering a 30 day closing this would put us well beyond the start of school. Is this a deal-breaker with the potential that we could miss out on the most probable target market of renters? Or am I just overthinking this one..  

Josh