Ok so here's some background. For years, I have been eyeballing rental properties in the city that I went to college at, in upstate NY. I'm interested in buying low cost housing to offer affordable prices to students. I know the neighborhoods and areas, I've lived in many apartments and understand what students are willing to pay for and live in. My weakness, I do not know much about how buying homes or renting, this would be my first. I also live on the west coast now and would have to delegate everything to prop managers and the like.
Here's the numbers I have crunched,
A 3br house for 60K can rent somewhere between $300-450 per room. I'll assume worst case, $300 per room for a 10month student rental (pretty common lease length in the area).
This pulls in $9k a year and satisfies the 1% rule. The biggest issue with this area is that housing is not growing, based on recent historical trends I could not reasonably expect this property to increase much in the next 10 years, I would be buying this purely for a cashflow business.
For a 60K home I could reasonably jumpstart this with 16K for a down + closing and setting up some basic furniture in the home.
My question, is this worth it? Anything else I haven't considered?
Thanks for reading!