College Rental Bringing in Cashflow

[Jennifer Stradtman]

Investment Info:

Single-family residence buy & hold investment in Tallahassee.

Purchase price: $187,500
Cash invested: $44,000

College rental 5 bedrooms rented individually. Total rents collected 2,450.

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

The returns are great, low sales price, exceeds all my minimum return thresholds.

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

Had a family member refer me to a Realtor/ investor who is a top agent/ broker in town. People bring him deals. He gave it to me since I bought two other properties in 30 days.

How did you finance this deal?

20% down and conventional loan.

How did you add value to the deal?

Haven’t made any changes yet but will reconfigure 5th bedroom to a bathroom to get 4/4 and increase rents $259/ month.

What was the outcome?

Will get higher rents in two bedrooms.

Lessons learned? Challenges?

First out of state purchase. Best to network, know people, ask questions, do research.

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

Yes. Ask for a warm intro.