I have been researching student housing for a while. I wanted to do a sanity check and appreciate any feedback I receive.
One property is $175k. There are a few desirable townhomes communities that seem not to be accepting any more applicants for 2007-2008 because they are already taken.
My reoccuring expenses are:
mortgate (checking into a loan to put as little as possible down), taxes($900/yr), HOA($1240/yr), insurance($500/yr) and mgmt fee(10% of rents; $1500 - 4 students * $375).
HOA takes care of all external items such as trash, snow removal, roofs, siding, etc.
I’m aware I should prepare for possible vacancies but it is difficult to assess because this property already has a lease for 2007-2008 school year. Also, I have not seen these specific communities advertise as having a bedroom or townhome being available. This property is a mile or less from the school which seems to be very desirable by students and their parents and reduce risk of vacancy.
Please let me know if I’m on the right track and if I’m missing anything. Greatly appreciate it…