Renting a Single Family Home to College Students

[Douglas O'Neill]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $225,000
Cash invested: $45,000

I rent 3 separate rooms to students from a nearby college.

What made you interested in investing in this type of deal?

I bought this house before I attended this college and lived/rented it until I graduated and moved back to southern california. I had planned to sell it, but the bay area markets really took off and it was paying for itself anyway so I kept it as a rental. I am currently NOT managing or cash flowing this property the way I should be. Looking here to change that.

How did you find this deal and how did you negotiate it?

I used Zillow and a realtor in the area. I was familiar with the homes from this development on a previous visit, but did buy this REO sight unseen...aside from some photos.

How did you finance this deal?

conventional loan

How did you add value to the deal?

Biggest value was living in it through college, reducing my personal monthly housing expenses to about $300

What was the outcome?

good equity gain and a little extra cash

Lessons learned? Challenges?

tracking the comings and goings of students, tracking payments and deposits, paying utilities on the property out of my own pocket.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

nothing special