Rooming houses are extremely management intensive.

They have owned stock that goes up and down and some have also owned more intensive type assets and are simply tired of problems in exchange for higher yields.They are simply in a mode where they want to receive a monthly check and do nothing.

4 students to 1 unit sounds management intensive to me.- How do the utilities work?

We believe we can squeeze more rent out that way, with the downside of requiring more intensive management.

(If my grand project wouldnt fly - I'd like to pursue the possibility of building a smaller multi family project on one of the empty lots -- a 6-8 unit building should fit along with parking and maybe space for a basketball court or sand volleyball court or the like)Here's my idea -- there has only been private rehab of the couple old apt buildings near the school and some of the run down houses -- however nothing built "new" as far as I can tell in decades.  

We just sold our house (closing on 5/1) and will have $20K set aside to use for real estate investment (rental or perhaps a less-intensive flip?).  

On the PM on those types of properties do not be cheap and calc 7% or something.In a iffy area collections will be more intense along with turnover.

Might still be a good deal at the price, but it will be very time intensive

Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookThe local REIA clubs will be a source of good info, support and people.Section 8 can be more labor intensive, go to IREM.org search for ARM certified property managers with Sec 8 experience.

Of course Labron makes basketball look easy too, and I cant make a hoop to save my life, LOL!