Student House hack in Downtown Phoenix

[Nick Kahler]

Investment Info:

Condo buy & hold investment.

Purchase price: $210,000
Cash invested: $25,000

Student House hack current, eventually Student of young professional long-term rental.

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

Turning an expense into an investment by redirecting $11,600 annual student housing cost into an owned asset. Saved, $1,400 per year near term and capturing $500/month in principal paydown. When my daughter and roommate move out we transition to pure long term or student rental at appx. $450/m net monthly cash flow proceeds. Located in downtown metro Phoenix that is undersupplied with condo property with reasonable HOA. Close to Medical Campus, Arizona State Univ and pro sports arenas

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

MLS

How did you finance this deal?

Owner Occupied FHA

How did you add value to the deal?

Brought in one trusted partner to share risk

Lessons learned? Challenges?

University campuses can be undercapitalized with student housing resulting in high dorm cost. Find a property nearby, pay yourself not the institution and rent the remainder to the parents not the students!