Single Family Rental Near College Campus

[William Hughes Jr]

Investment Info:

Single-family residence buy & hold investment in Memphis.

Purchase price: $84,900
Cash invested: $2,547

Single Family Rental. Renting out the rooms to students to double income from the property.

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

Mainly because of it's location. It's located a few minutes from the University of Memphis in Memphis, TN. Rents in the area for a 3 bed 2 bath are around $850 a month but renting out 3 separate bedrooms individually will bring in $550 per room for a total of $1650 per month almost doubling the gross income. Also, the property appraised for $25k more than what I paid for it, so it was a win win deal all around.

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

MLS. Bought the deal through one of my main real estate agents that I like to use.

How did you finance this deal?

Financed with a conventional loan.

How did you add value to the deal?

I negotiated a number of repairs into the deal before my appraiser ever stepped foot on the property. This would have raised the property value significantly.

What was the outcome?

I purchased the home.

Lessons learned? Challenges?

To work with a good realtor if you're going to be purchasing a home off the MLS. Make sure to find something in a good area, that in the worst case, can be rented out traditionally for a decent monthly profit margin.

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

Real estate agent and Bank of America for lending. I would definitely recommend my real estate agent to anyone in the Memphis area but she does not have a BiggerPockets account....yet.

[Annchen Knodt]

Congrats @William Hughes Jr, sounds like a great deal!!