Numbers on a Student Rental

[John Romero]

Hi everyone,

I've been away from BP for a few months, out in the field looking for properties, running my own numbers, etc, etc.

I recently found a property that I am considering for a Student Rental and perhaps you can review my numbers and comment if i'm going in the right direction...

Purchase Price: $90,000
Rehab: $35,000
ARV: $160,000
Insurance: $1000
Property Taxes: $4500

Potential Rent:
5 Bedrooms @ $400/bedroom : $24,000 (Annual Gross)

I've used a few forms, just wanted to get some other opinions...

Thanks
:D

[Mark B]

So, you are renting by the bedroom,and I assume the property has shared kitchen, entry, laundry(?), bathrooms, etc? Who is going to be responsible for cleaning those spaces (as Mitch mentioned) and what kind of rules are you going to have to set up. This kind of property takes a lot more management as I am sure that you know.

My wife and I have some friends (husband and wife) that specialize in this kind of thing in San Diego. They convert large houses and MFH into furnished "nice" apartments and target graduate students. They are very financially successful, but the wife had to quit her day job to manage the units full time. If you want, I can try to connect you with them to get the inside scoop.

M