Turnkey Frat House - Partnership options?

[Matt Hurley]

Hey y'all! Some bullet points about the property before you look at the calc:

• Rental income is contractual and provided by the frat, ergo 0% vacancy. Any un rented rooms will still be paid for by the organization
• The property is 2 blocks from the local college to which the frat belongs
• Yes, the taxes are accurate and they're ridiculous. The millage rate for an investment/non-owner occ. property in this area is 84.67
• I will be self managing

View report

*This link comes directly from our calculators, based on information input by the member who posted.

My biggest concerns: 

1. I don't want to lose $55k on the down payment
2. This is a new chapter of this fraternity, as of 2017 at this college
3. There's not enough profit to support a partnership

There is unfortunately not a ton of value add, other then maybe a coin laundry in the basement. Most big CapEx and repairs has been completed, so a BRRRR is not an option on this one. If I was seeking a partnership for that down payment, what is a good approach? What would make this worth it to an investor (or is it worth it)? Thoughts appreciated, thanks BP crew!

[Jason Munger]

@Matt Hurley just some friendly advice. Don’t call it a “frat” when you talk to the fraternity. Call it petty or semantics, but they hate that word. It’s a fraternity.

That said, besides the obvious that the house will take some serious abuse, new chapters often fail or run into compliance issues. IF you go through with this, make sure you have a plan “B” that works as a college housing rental unit. If your numbers still work with that scenario, you MAY have something...all concerns already mentioned taken into consideration.