College Rental on the NW Side

[Mitchell Luban]

Investment Info:

Single-family residence buy & hold investment in Grand Rapids.

Purchase price: $180,000
Cash invested: $950

5 bed 2 bath college rental. Purchased and rented to college students. Rents for $2,100. Property was pretty renovated when we purchased. Added laundry and did small punch list items college proofing it.

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

The proximity to downtown and the rent we are able to attain is much higher when we rent to students and young professionals. It does require some more management but we have found with the right screening that it has paid off for us.

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

The seller called us. She is a realtor and I had purchased a property from her in the past and had asked her to keep us in mind if she had other properties because we are easy to work with.

How did you finance this deal?

20% down conventional financing with Finance of America.

How did you add value to the deal?

We really didn't do much to the home its self. Like a lot of things in this business it was about who you know. We got the deal before it ever got listed thus getting it for under market value. We added laundry and did your typical punch list type things.

What was the outcome?

We got a great rental that will cash flow nicely for years to come without having to fight multiple investors and home buyers out to get it.

Lessons learned? Challenges?

Continue to network and do what you say you're going to do people remember that and sooner or later you will get a deal not because you offer the most money but because you are easy to work with and the person on the other side of the transaction knows that you can perform.

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

I use Finance of America for my lending needs Blaine Marney is the lender I use! I am an agent so I handled my side of the transaction.