Getting the first deal done

[Julian Maze]

Good Morning,

I have a deal that I am currently evaluating and I am looking for advice such as are they truly deals, what other things should I consider.  

Just so we can connect a little more I am a 22 year old investor in Hammond, La. I recently graduated from college a few months ago. I was heavily involved, ran track, and had ambitions to become a physical therapy. When I graduated, I went to Miami as a graduation gift and ended up connecting with an investor from Michigan through mutual friends. After interacting and learning of an entire new realm, I begin reading in search of something more and was connected to bigger pockets by a friend. I begin searching deals on MLS and begin exploring the market for off-market deals as well. I found a property on MLS that could bring higher yields just by taking a different approach.

Deal. 

105,000 4 bed 1 bath condo located very close to major university within walking distance. The surrounding area is filled with grocery stores, food places, etc. and other things many college students look for. It is currently unoccupied The building was built in 1944 as a military base and was transformed into condominium complex. Most of the walls inside are concrete. (Any concerns with this?) the rents are currently 1100 fully furnished and 1095 without. Tenants in the pass have been mostly students/international students whose parents are not of high income. HOA includes internet water and sewer. The condo needs a paint job for sure and maybe a few small renovations and will be rent ready. I see potential in this property providing great cash flow in the future after renovating, leasing to students covering all utilities, and make leases to individual doors to increase revenue. I plan to offer 20% less of the asking price to a motivated seller. I have creative ideas of financing but open to new ones and to any ideas, advice, etc.

Thank you,

[Bryan Blankenship]

Welcome @Julian Maze !

I'm not sure I'd pick a condo as my first property, let alone a college rental.  The repairs and management hassles can be insane which will eat up your profit/cashflow.


And then you have to factor in the hassles of the condo and HOA. They can raise costs on a whim and it's hard to compete with a normal SFR after those HOA costs. I have a few friends who focus on condos and even as good as they are, they can still get burned and lose $50K in value if the condo board makes one stupid decision.

My advice, avoid a condo as your first unless you're flipping it quickly and moving on.  For a long term play, there are better options.  

Good luck!