College Rental #2.. 31% COC... I've got the bug now.

It's been a minute since I've been on BP, but with a new job, and closing on property 2.... I haven't had to much time. Anywho......Probably a year or so ago, a friend got me hooked to the BP podcast. Then about 6 months ago, I got into my first househack, which is great, it covers the mortgage while I live there, and then some.  The duplex I live has been pretty easy, I have 3 nursing students living above.... they're great, pay timely, respective of boundaries and my sleep, etc. 

However, I wanted a true rental property. The great part about the FHA 3.5 % loan, is that I still had cash to get into another property w/ a 15% down payment. So, I quickly began looking via direct mail, MLS, craigslist, even walking neighborhoods hoping to run into a 'tired landlord'. 

As it turned out, I was in Portland, OR for a work trip.... I usually always peruse the MLS each morning before work..... I came up on a 3/2 SFH on the periphery(still only 1 mi from the heart of campus) the college area. It's in between the university and downtown Cincinnati... so I really like the location. List of reasons that I had my realtor/cousin and mom go see the property in my stead ASAP- in no particular order PICS OF HOUSE BELOW

1. Garage

2. Driveway with Parking for 3

3. 2 sets of pocket doors meaning potential for additional bedroom, 2 if I got greedy and canceled the whole living room thing

5. All well maintained hardwood floors

6. Walkout from kitchen to backyard

7.Spare room in basement-will cost about 2.5k to get rent ready.... but that's another bedroom & basement with walkout to backyard

8. Large Bedrooms with Closet Space

9. Central AC- Can I get an AMEN!

10. 20 feet from Campus bus stop

11. Street Appeal- I like older homes/homes with character-- they don't make em like they did in the 1880s.... my 2 properties are a combined 227 years young...

12. Newer HVAC

Realtor and Mom confirmed it wasn't too good to be true, but that it was a house with good bones--- owned by a family who took extreme car and didn't rent to drunken undergrads. 

We offered 5k below asking.. they rejected, we quickly countered with a full price offer ha. 

From there it was relatively painless, although the mortgage company was much more needy with this being a true rental vs. my first property that was owner occupied. Felt as if they needed the same thing 5 times over and over. 

Now that I've closed(June 30) and got it rented(July 11)... figured I'd roll out with the numbers. 

Purchase Price $134,900

Down Payment 15% + Closings(2.5k paid by seller) was a little over 22k. 

PIT $971/month

Insurance $85/month-- It was actually difficult to find an Insurance company to insure a non-owner occupied property to be used as college rental

Rent $1850/month

Cap Ex and Maint (12%) $222/month

Vacancy- 0% --sellers at closing said it hadn't gone vacant with the exception of 1 month over the span of 12 years... and they lived in Chicago... so I'm comfortable budgeting for no vacancy-plus I had over 20 people request viewings in one week on zillow

MONTHLY CASHFLOW $575/Month

Cash on Cash Return - 31%

Goal(s) Moving Forward

My goal is to continue to buy tremendous cashflow deals be it SFH or small Multi-Family(1-4) with my current lender who will do up to 10 mortgages so long as my DTI meets their reqs. I'd like to purchase higher end college rentals with proximity to Cincinnati Hospital(s) and Campus. I'll refinance my first househack, so I can do one more househack in September. I've already discussed this with mortgage company, and they're ready to refi with me as soon as 6 payments have been made. 

Cheers, and happy BPING.