hello my name is terrance spencer i’m 29 i reside in galesburg, il 3 hours from chicago recently divorced dad father of 4 and i stumbled across this site via a email ad the only real estate experience i have is in property managment
ok my deal failed but it may be able to be worked first off its in chicago, ill i found it via craigslist after watching the videos here purchase price is $249000 it is 14BR/4BA Multi-Family, 4 units
my deal failed 100% but the income total were Property configuration:
Garden 3 bedrooms – 1 bath $800/month (projected)
1st Floor 3 bedrooms – 1 bath $1294/month (actual)
2nd Floor 4 bedrooms – 1 bath $1225/month (projected)
3rd Floor 4 bedrooms – 1 bath $1200/month (projected)
4 parking spaces
doug please contact me so i can show you the deal to see if i did it right please thanks
Wow Doug! Thanks for making this contest available to everyone. I began investing in residential real estate in late 2007 and have been interested in SRO properties which fall into the Student Housing category. Here’s my deal:
1) Purchase Price: $15.000
2) Renovation Costs $45,000
3) After Repair Value $189,000
4)Gross Monthly Rent $ 3,200
Cost To Value Ratio: 31.75%
OK. So I jumped ahead and downloaded the spreadsheet before listening to even the first 30 seconds of the video–I’ll get to that right away. The spreadsheet is awesome! Nice share and I look forward to hearing what you’ll say in this video and the one coming next. Blessings, Cindy in Loveland, CO
Good afternoon Doug so excited to find your blog! I actually found two properties in close proximity to two universities in Tallahassee, FL. My family and I started the wholesale business in April of 2009. We hope to close on these properties soon as these will be our first deals. My brother and I our both college students. I attend classes online at Western Governor’s University studying I. T. I am 28 years old and I no longer want to be in the rat race. My brother attends FAMU in Tallahassee and is very aware of the housing issues on campus. So we thought this would be a good niche to get into This is what we have:
6/6.5
1.Purchase Price: $110,000
2. Renovation Costs $0
3. After Repair Value $250,000
4.Gross Monthly Rent $ 2,600(on the low end)
5.Cost To Value Ratio: 44%
6.Cash flow Cow rule:2.36%
4/4
1.Purchase Price: $109,000
2. Renovation Costs $1,500
3. After Repair Value $180,000
4.Gross Monthly Rent $ 1,600(on the low end)
5.Cost To Value Ratio: 61.39%
6.Cash flow Cow rule:1.45%
I wish I could keep these great deals but they are available to sell now.
Doug,
Great video and opportunity you are giving us. I immediately downloaded the Profit Analyzer. This is GREAT! I have been forwarding your videos to my 28 year old son who lives in Washington DC. He is currently renting a room in a large house and paying $900/month rent. He is not currently a student (works at Justice Department) but I see that even a young person starting a career could use this niche of real estate investing to set himself up for life. What a great way to get out of the ratrace!
I am trying to build a short sale investing business right now (partnering with an expert SS negotiator) and own one rental property. I see great potential in this niche of real estate investing and plan to enter your contest and then win to partner with you. Thanks for this opportunity.
I will start looking for a deal to submit right now.
Thanks.
Thanks for chance to learn and succeed in real estate investing.
I am getting busy on it today (at the same time I have a 3 year
old that I am caring for). Santa Barbara, CA.
Hey Doug, I just found a property but the Realtor does not have the renovation cost or the other data needed. I’m setting up a meeting for Saturday with a contractor to see if this is a profitable deal. Hopefully I will be able to submit this or find another deal in my area before the deadline.
3 BR SPLIT FLOOR PLAN
REMODELED UPGRADED
SELLER FINANCE $299,838
OR MAKE A REASONABLE OFFER!
CREDIT PROBLEMS-WE WILL HELP YOU!
THIS HOME ELIGIBLE FOR SELLER FINANCING-NO QUALIFYING
GREAT TERMS **5-15% DOWN** OWNER/BROKER
Thanks for the analyzer, Doug. However, I have a question about the financing. Initially you offered to show us how to get funding. I don’t know whether I missed it somehow, but I only see where you are offering to assist the contest winner in finding financing. How about the rest of us folks who meet the criteria of broke? Where do we get the money?
Hey everyone. Waiting on information for other deals, but this is what I have found so far.
One block from a smaller college.
Price: 46,000
Renos: 40,700 (includes detailed est)
APR: 135, 000 (took the low value from the comps)
CTVR = 64.22%
CFCR = 1.38%
Based on 3 x $400 rents which I am getting confirmation on.
I have been dabbling in real estate for about 10 years. Mostly single family apartments – won some, lost some. Over all I think I broke even. But I am learning as I go and keep pulling that trigger.
I have always been interested in buying multi family units – I even convinced a friend to do it and he thanks me every time we get together. I like the student housing angle as you are not as affected by what is happening in the town. And if you have a decent place, you should have tenants for at least 4 years. I like that!
Hi Doug, I am thrilled about your program and cannot wait to learn more. My wife, my two college daughters and I have been doing some real estate investing back in 2005 and 2006 (mainly rehabbing) but we got out of real estate after that. Now I am back and want to learn where the best market would be to get started again.
I found the following property in Gainesville, Florida near the University of Florida:
3/1 in Porters Oaks, on 611 SW 3rd St. in Gainesville. The property is move in ready with all appliances in place. To be on the safe side I just put a $2000 for repairs. Here are my numbers for my deal:
Purchase Price $ 47,500
Renovation Costs $ 2,000
ARV $ 69,000
Gross monthly rent $ 1,200
Cost to Value 71,74%
Cash Flow Cow Rule 2,42%
According to your tool this is a winner!
I look forward to hear back from you. Thanks so much. Reto B.
I am just starting my real estate business and came across these videos. I am excited to see if this will work for me, it would be encouraging a little to see it work for someone else.
Here is what I found.
Close to Rutgers University & NJIT in Newark, NJ.
Purchase Price = 94900
Renovation Costs = 12000
After Repair Value = 328000
Gross Monthly Rents = 3600
Cost to Value = 32.59%
Cash Flow Cow = 3.37%
Hi, Doug!
My name is Martha and I’m a seasoned real estate “subject-to” person. I currently doing short-sales and will attend a commercial bootcamp, soon. Been in the biz for five years (on and off), and I’m also a Master Esthetician (i do waxing, manicures, body treatments, etc…). I’m getting back in the game and want to sharpen my saw. Here are the deals I found when I put typed, “college rehab” on CL, since I just moved to the area and don’t know the college names by name. I researched all of Florida state on CL with the same keywords. Tomorrow, I’ll try another city with the same criteria and provide you with my findings.
Per the seller: the local black college is interested in buying this property to convert to their own student housing. The area is gentrifying. The house is a 4BR, but could easily be a 5BR…with 2 large bedrooms and 2 smaller bedrooms. The owner just got a pace maker and can’t deal with another rehab project…he also sounded ancient (geriatric). Not listed on the MLS, but told me that zillow has it value listed at $85K….though, the owner from whom he purchased it from did get an offer for $99K in writing three years ago….I explained that I couldn’t use that number as a current comp. lol. He agreed. Owner also mentioned that I can get government financing to buy this house thru HUD.
852 NEUSE AVE, ORLANDO, FL 32804
-2 Bedrooms, 1 Bathroom
-667 Living Square Footage
-College Park Location
-Large Yard
-Mature Landscaping
-No HOA
-Taxes: $1,709 (09)
YOUR PRICE…ONLY $24.9K!
-Cash or hard money only
-Buyer pays all closing costs
Cost To Value Ratio 59.90%
Cash Flow Cow Rule 1.14%
http://orlando.craigslist.org/reo/1606389599.html
This 3/1, 1243 sq ft home has a large living area and an open kitchen. Property is on an oversized lot..Minutes from the local college as well as shopping & dining.
Per the ad on CL: Rehab that’s needed includes flooring, paint, drywall repairs, and general updating.
407-429-7865
1518 MIAMI RD, ORLANDO, FL 32825
-3 Bedrooms, 1 Bathroom
-1243 Living Square Footage
-Block Construction
-Central Heat/Air
-Newer Air Handler
-Breakfast Bar
-Oversized Yard
-No HOA
-Taxes: $2259 (09)
-Needs:flooring in 2 bedrooms, paint and minor cosmetics throughout.
-Has: nice tile throughout common areas, kitchen cabinets that are in good shape with a stove and dishwasher that are still in place
SUMMARY:
-3 Bedrooms
-2 Bath
- 1027 SQ FT (LIVING)
Cost To Value Ratio 49.93%
Cash Flow Cow Rule 2.00%
$59900 / 4br – Great 2 plex for sale (Miami FL)
Date: 2010-03-17, 10:28AM EDT
Reply to: dario@bankonit.com [Errors when replying to ads?]
Exelent monthly CASH FLOW opportunity. Close to Miami dade college north campus.
Each units have 2/1, parking space in front of the building, nice back yard, lot zise 7,000 Sqft, living area 1276 Sqft,year built 1957, reatil market value after repairs $140K. each unit can be rent out for about $700-800 a month.
The property needs general rehab like paint, floors, update baths and kitchen.
Hi Doug,
I have been studying real estate investing for a couple of years after reading Rich Dad Poor Dad. I purchased a rental property in Phoenix in spring 2009 with tenant in place with $400 cash flow and just $3500 out of pocket and $2250 back at closing. Sweet deal right? Well the tenants moved out in October 2009 and I had to do repairs and lower the rent to get a new tenant. The property values and rents have plummeted in Phoenix. It’s going to be a while before values “rise from the ashes” in Phoenix, but as long as I can keep a tenant, I can hold on. At the moment I have partnered with 2 Short Sale Negotiators of luxury homes who will fund my deals. I will be the buyer in the A-B B-C back to back closings to end buyer. Great profit potential. Still learning and working with realtors to get deals.
Here’s my deals:
Duplex Raleigh NC near NC State with 4 bdrm/2.5 bath each unit. Total 8 bdrms
1.Purchase Price: $216,900
2. Renovation Costs $8,000 (maybe $0 move in ready)
3. After Repair Value $300,000 (seller had another property with less bdrms for this price)
4.Gross Monthly Rent $ 3,200($400/each bdrm)
5.Cost To Value Ratio: 75%
6.Cash flow Cow Rule:1.42%
Congrats you’ve got a winner here. Better move forward ASAP
3bdrm/2.5bath townhouse Greenville NC near Pitt CC/Medical School and 3 miles from East Carolina U
1.Purchase Price: $67,000
2. Renovation Costs $0 (owner cleaned carpets and new paint)
3. After Repair Value $125,000 (Est. compared to listings in area)
4.Gross Monthly Rent $ 1,000($400 for master bdrm/bath and $300 each for other 2 bdrms)
5.Cost to Value Ratio: 54%
6.Cash flow Cow rule:1.49%
Congrats you’ve got a winner here. Better move forward ASAP
This was fun!! This a great tool to analyze the deal. I can add this to my toolbox for analyzing profit potential of real estate investing. I’m excited about learning more. I just retired from a state JOB (Just Over Broke) of 35+ years with a pension and a small IRA. I’m just 55 years old and need to continue working/investing (this is too fun to be work).
Thanks for the opportunity to look into another niche of profitable real estate investing. I hope I WIN!!!
Hey Doug I’ve really enjoyed your videos thus far and I really like the idea of this contest. I’m 24 and have lived in a college town Rexburg, ID for over five years now. I’ve wanted to get into real estate for a number of years, I have a cousin that manages property here and has done well. I’ve always seen the potential in real estate. But I have yet to invest because I’ve been trying to learn what I can and mostly I’ve just been unsure how to make it happen and how to fund deals considering I’ve mostly been working seasonal jobs and am actually looking for work as we speak. Anyway here’s a deal that I’ve been looking at for the last week its in a college town Louisville KY, but I don’t know that its’ near enough to one of the colleges to be considered student housing but it still looks pretty good to me. Its 24 one bed units.
1.Purchase Price: $150,000
2. Renovation Costs: $125,000
3.After Repair Value $420,000
4.Gross Monthly Rent $ 7,200 low end up to maybe 8,400
5.Cost to Value Ratio: 65.48%
6.Cash flow Cow rule:2.62% low to 3.05% high
Look forward to seeing everyone’s deals and watching the contest. Thanks Doug
I have beeni investing for the last 30 years and have owned more than 50 residential and commercial properties in Wisconsin. I now live near Tampa Fl. and like the idea of student housing.
I am looking at a property close to USF in Tampa and will bring $400 per month x 3 students =$1,200 per month.
The asking price is $55,000 but it is a short sale and I think I can get it for $40,000. It needs paint and flooring at a cost of $5,000. The value would be around $60,000 after repairs.
Purchase Price $40,000
Renovation $ 5,000
After repair value $60,000
Monthly rent $ 1,200
Cost to Value 75%
Cash Flow 2.67%
OK, this contest has awoken the giant within. it’s Martha Chiriboga, again! I decided to keep on bird-doggin for more deals on CL, but I found nothing is AL, AK, AZ, MA, UT, CA (i kept the same search words, “college rehab”).
However, in TN, I found this ad. It sounds like a good deal, but when I went to zillow.com, it didn’t give me any info.
I’m not so sure it’s a good deal, since it’s been advised on CL since 17 Feb., 2010 (BUT I COULD BE WRONG, since I’m a newbie).
Sooo, I guestimated the rents and guestimated the ARV. The only thing that triggers my suspicion on this one is that in the beginning of the ad, it says “No repairs needed”, but then the advertiser says, “we can lend purchase + repairs”. Didn’t he proofread his copy?
Wow! How fun…I love contests! Here’s what I found:
A fantastic bargain (not even on the market yet) located near downtown hi-rise condos and under 1 mile from 7 colleges, the famous San Diego Zoo, Botanical Park, and the San Diego Regional Medical Center. Talk about location! The property is old (built 1907), consists of two buildings (duplex), 5 bedrooms, 4 baths. Average room rental rate in this area of town is astronomical! So, ding ding ding, I think we have a winner:
After Repair Value: $1,500,000 – $2,000,000 (figure based on recent solds on Zillow, could be more based on square footage).
Gross Monthly Rent: $5000 – $6000 (nearby rents are $1200 for 1 bdr apts)
Cost to Value Ratio: 53.33% (based on low-end ARV)
Cash Flow Cow Rule: .63%
My name is Kathy, I recently relocated to San Diego. I’m already tired of working 9-5 for peanuts. Just obtained my real estate broker’s license, but not currently practicing. I’ve taken many ‘investing’ courses over the past 5 years, but when it came time to ‘do the deals’, my coaches were not available to do deals with me. Fear of the unknown has slowed me to this point, I suppose. I did purchase one condo and flipped it – breaking even, just before the bust. I was lucky. But I’d hoped for so much more! I’m definitely looking to be a birddog and split deals.
Wow. After searching in areas/schools near me, I’m surprised to find that they don’t meet the criteria. I used Craigslist and also have access to the MLS. Although some properties meet the criteria in Greeley, I know that that area is extremely competitive for college rentals and that several areas would not be considered safe by the parents of college students. Is it ok to range out from my local area to look for a property to submit for the contest? I hope so, because the rents are low in comparison with the costs for properties in Boulder, Fort Collins, and Greeley. We did recently make a sweet deal on a 4-plex bought at auction (and your property analysis software proves that it was indeed really sweet), but it’s not really near enough to any university around here to qualify as a college rental. I was actually surprised that things in Fort Collins near CSU didn’t qualify based on your software, but also really glad to find that out. Perhaps searching out free and clear or probate homes near CSU would work, though.
Found a home 10 blocks from gonzaga university, 4bd, 1bath. fully refurbished, asking 100k , college is getting at least 450.00 a unit, so say 1800 a month , mortgage was estimated at 550.00……… tried to download your analyzer but was unsuccessful will try again……..
I this is a real deal I have a great property (I emailed it to you). I am desperately seeking my first commercial/multi unit deal….more details about me in my email. The property I sent is in an area with a rapidly growing college, a huge military base and is priced at aprox. 60% LTV (ARV). I filled out your form and the numbers look great,so, LET’S DO IT!!
Thanks for the free info, it’s sorely needed in the marketplace.
OK. I’m a skeptic. I put in a craigslist search for Hofstra on LI,NY. Zero results. Expected. Then I changed the search to say student housing. I got a seller near a college called Herckimer who wants to retire. He states the front of the property is a legal 4 family, with a 3BR house in back of that, for a total of 12 rooms to rent with an average rent-roll of 4000-4400 per student. He wants 85000 for the whole thing,cash. He says it appraises at 95000 and says nothing about repairs but would pass appraisal. Your analyzer doesn’t take into account the second 3BR house.Claims the annual rents are 48-52K per year and that the school athletic dept. is interested in properties like those to keep teammates together. http://longisland.craigslist.org/reo/1605924088.html
So do you do properties at a distance, or local?
Single Family home built in 1970 with sq feet of 2567 on a .30 acre of land on Hasty Street. The total assesed value is around 115,000.00 selling property for only 45,000.00 this is a excellent deal. The area is very good and close to NC State University. Selling this property for this price because do not have the extra money to fix it up or do anything with it, taxes or dued witch are only 814.00. If interested please call 919-847-8869 to veiw the property.
Purchase Price: $45,000
Renovation Costs: $30,000 (Very conservative)
Cost Price: $75,000
After Repair Value: $115,000 (Tax value)
Gross Monthly Rent:$1,200 ($400 each bdrm)
Cost to Value Ratio: 65.22%
Cash Flow Cow Rule:1.60%
Congrats, you’ve got a winner here.
Better move forward ASAP
Thank you for this opportunity. I truly appreciate all of the helpful information that you are sharing with us. I have been involved in real-estate for 4 years now and like you I began at an early age. I am presently looking for ways to improve my business and to increase my own personal income. I strongly feel that your system can do just that. Once again thank you for this tremendous opportunity and I am looking for to one day speaking with you.
Sincerely,
-Clayton-
This is a property that I found in Philadelphia. It is minutes away from Temple University. Huge 3-story CORNER PROPERTY located in the Temple university area!!! 8 bed, 2.5 bath with huge adjoining lot which could possibly be used for a 6-car private parking area. Spacious covered porch, very large basement, cozy backyard. This property is for sale $64,999. Adjoining LOT is also available for sale for $10K. Purchase either property separately, or as a package deal. The PACKAGE price for BOTH properties is $74K. I did my analysis just on the home alone.
1. Purchase Price:$64,999 (Just off the Home Alone)
2. Renovation:$0
3. Houses are selling for $135k-160k
4. Gross Monthly Rent 8 rooms x $500 a month=$4,000 a month in rental income.
($500 A Month Being Conservative Here)
5. Cost To Value Ratio: 43.39%
6. Cash Flow Cow Rule: 5.63%
Nice spreadsheet! I have been investing in real estate for about 7 years. have been hit hard by the recent crisis as I had overleveraged some deals. Looking for new ways.
Here is a deal I found on craigslist:
Exelent monthly CASH FLOW opportunity. Close to Miami dade college north campus. $59,900
Each units have 2/1, parking space in front of the building, nice back yard, lot zise 7,000 Sqft, living area 1276 Sqft,year built 1957, reatil market value after repairs $140K. each unit can be rent out for about $700-800 a month.
The property needs general rehab like paint, floors, update baths and kitchen.
need about $12K in repairs.
I have to commend you on finding a “new” niche in these times – you are truly making others rethink! I was a real estate agent (my only income) for several years until I became disabled and was unable to continue selling. I was hoping that this would get me back into real estate and the business I love and put my brain back to work where my legs have failed me.
The deal I found is actually within walking distance of TWO colleges(!!!) and a major pharmacy school. It is a duplex, and the landlord is currently renting one side out to a college student for $750, but the beauty is that both sides are a total of 6 bedrooms. Using your evaluator, Doug, here’s what I get, based on my previous real estate experience:
Doug, as you can see, they all read “PASS” and this feels like a great property! I hope you find it worthy and get me back on my feet again, so to speak.
Doug,
My name is Scott Hixson and I have been in real estate for a couple years as a commercial broker. I saw some smoking deals go by but didn’t have the guts to look for funding to buy them, that was then…..
With your help, I will find some unreal deals in all areas and make us both some money! I was searching craigslist and could find nothing in Chivago that made any sense at all so then I went to Zillow and searched for foreclosed houses around the major colleges…bingo! I found a 4 bedroom house in need of rehab which should need about $30,000 or a bit less to make it ready. It is listed at $99,000 but I know I can get it for less (being a broker and all). The ARV is about $280,000 and rents for a 4 BR in the area are $2800/mo. Giving a cost/value of 51.60% and a cash flow cow rule of 2.17% Not bad I would say…
Thanks for being an awesome mentor! Scott
I didn’t know if two entries was kosher or not (see personal info above), but thought this deal was very interesting because of size and price. 8 (Yes, eight!) bedroom, 3 full bath, 3 floors, 2,833 sq. ft. and walking distance to both colleges still. third floor is fully rehabbed and rented. 1st and 2nd floor still need to be done. This one looks like the owner got overextended and just wants out. He doesn’t see the potential of renting to students!
Cost to value ratio: 68.63%
Cash Flow Cow Rule: 1.64%
My only real estate investment was an auction purchase for $7000.00 in the Kensington section of Phila. It was a full rehab for $30k. ARV between $55-60K. Currently getting $650 rent. I’m glad to see that entering the info into the Analyzer it was still a good deal. I’ve always believed that student housing was a good way to go but was concerned about the tenant issues. Now my issue is getting the financing. I’m finding that banks are a little reluctant to finance an investment property. Look foward to your next video.
I’m Javi a new RE investor. I’ve been at this for awhile through many guru pitches. This is a high cash flow model that has major potential at just the right time. Kids are staying in school for advanced degrees since there are no jobs out there right now. Take us through the rest since get financing is a major hurdle for all of us.
2 Units … Each 3 Bed / 1.5 Bath. Building needs about $20k in rehab to be rented. Each side will rent for about $600/month. After Repaired Value is about 75k. Seller has property inspection reports and four contractor rehab bids. Property is less than a mile from a University.
I got started in student housing in Fall 2005. Grew too fast. Lost some money. Sold some buildings. I’m holding on to my properties in Oswego NY but need to liquidate two properties in Cortland NY – just a block from SUNY. Mortgages due: $120k first, $30k second. Bank will accept short sale – make an offer! According to your property analyzer, offer should be around $105,000.
Purchase Price $105,000.00
Renovation Costs $5,000.00
Cost Price $110,000.00
After Repair Value $150,000.00
Gross Monthly Rent $2,500.00
Cost To Value Ratio 73.33%
Cash Flow Cow Rule 2.27%
I’d love to keep these – if I could figure out the financing, and use your “magic lease”, these should be cash cows.
By the way – our gross monthly rent includes utilities. In upstate NY, this is definitely an issue! How do you factor that into your formula?
I’m a 26 year old who grew up in Alabama and joined the U.S. Marines Corps right out of High School. While I was in the Military, I’ve always committed myself into something that would help me become more independent and financially free. Unfortunately, I got caught up in the different home-based businesses that went nowhere, but my funds did. About 3 years ago, the real estate bug hit me and loved the idea of becoming a real estate investor. I went off on my own and bought my first condo. Started looking good and bought a second condo for investment. Long story short, I now have both on short sale. I was inexperienced then, who has become a little wiser. I take it as a blessing in disguise. Hopefully, with you, this could be my comeback and possibly a long term partnership/friendship.
Doug,
I am in the same market as you. I am on my second project. We buy, fix and sell distressed homes in the Philadelphia area.
This is a college rich area. I see these buildings around and drive by because I did not realize the great potential in these areas. I am very excited to learn how to take these buildings and make them profitable.
My name is Tim Caldwell and I am a 42 year-old husband and father of 4 living in Cincinnati, Ohio. I own a small business and until the recent downturn in the economy my business has afforded my family a good living and allowed my wife to be a stay at home mom. My story is very similar to your father’s in that I feel I did most everything right, I actively manage my business six days a week, I take a modest salary, I re-invest the profits to continually improve it, I have good loyal employees, but the economy in this part of the midwest is taking its toll. I am looking for an opportunity that my wife and I can work together with her taking the lead. HER REMAINING A STAY AT HOME MOM IS CRITICAL!!!!
3br – 2 Houses Plus 2 Car Lot UC Area (Clifton UC Area)
From Houston TX, my name is Valentin Jaquez III. I am 23 years old, husband and a father to my 4yr old son. I work in the hotel industry which takes most my time away from my family. So, if I have an oppurtunity to change that I will. That’s why I’m excited to have chance to see if this works. I’m highly motivated and also ready for that change of life. It’s rough in my financial situation, which is why I cannot wait til Monday (your funding video).
Located SW Houston area – 1,700 sqft, 3 bedroom, 2 1/2 bath, town home
Here’s another potential deal, but they are asking too much. I used the Profit Analyzer to back solve the offer price with a guesstimate of repair costs based on ad. It is near UNC Chapel Hill.Great location. Priced $4k below appraised value. Very motivated seller = all reasonable offers will be considered. Centrally located in Hamlin Park (across from Eastgate Shopping Centre, Trader Joe’s etc) condo is approx. 2 miles from UNC & even closer to I-40. Built in the 1970s, there are 2 beds, 1 bath & 1 laundry room. Beds have huge walk-in closets. 2 patios. Large pantry in eat-in kitchen. Wonderful neighbors. On F bus line. Complex includes pool. Condo is older, so some work is needed (flooring, minor repairs, etc). GREAT opportunity for investors, university/hospital employees, students, grad students, etc. Pet-friendly. Plenty of parking.
My name is Roger James i live in canada im just getting started in investing in real estate and your videos have been really helpful. i LOVE this business and the end goal for me is to not have to work, i love it so much that i probably will always be doing this but i like the freedom of not having to. thanks for the videos and the property analyzer tool its been great. so anyways here is the deal that i found.
purchase price:$45 000
renovation cost: $3000
after reapair value: $98000
gross monthly rent: 1800
cost to value ratio:48.98%
cashflow cow rule:3.75%
i found another one that is currently a bar but would be worth more as student housing
purchas price:$98000
renovation cost:$100000
after repair value:$400000
gross monthly rent:5250
cost to value ratio:49.50%
cashflow cow rule:2.65%
Here is a deal I found that is minutes from a small college in Alabama. You can see the college standing on the front screened porch.
Here’s the deal:
2 bed/2 bath on 1300 sq. ft.
Purchase Price: $27000
Renovation Costs: $3500 ( Agent said only needs TLC, I understand “a good paint job”.)
After Repair Value: $60000 (according to the agent)
Gross Monthly Rent: $1500 (on the high end)
Cost To Value Ratio: 50.83%
Cash Flow Cow Rule: 4.92%
Congrats, you’ve got a winner here.
Better move forward ASAP
What if I found a student housing property that needs no repairs? Fully Furnished, Provides everything a college student would need excellent location. walking distance to college? Asking price is 102,000.00.
This really needs no repairs. This is ready to move in?
Hello everyone my name is Steven Galiszewski. I am a 21 yr student with a very serious entrepreneur mindset. I love the idea of creating wealth out of thin air and know that it is possible for anyone who is persistent to do this. I found a perfect investment only 9 minutes away from the 3′rd largest university in the United States. This is a fixer upper property and has some real potential. This house has 3 bedrooms and is 1243 square feet. Other houses in the same neighborhood have recently sold for $140,000/ $145,000/120,000. I have many friends that live close to this house. So here are the numbers:
1. PURCHASE PRICE-$49900
2.RENOVATION COSTS- $20000/AT MOST
3.AFTER REPAIR VALUE- $110,000
4. GROSS MONTHLY RENT- $900-$950
5.COST TO VALUE RATIO- 69.90%
6.CASH FLOW COW RULE- 1.29%
PS. I WOULD JUST LIKE TO THANK YOU DOUG FOR THE TIME YOU TAKE TO GET OTHERS ON THE CORRECT PATH TO SUCCESS!
This 3 bedroom, 2.5 bath townhouse is located in the Oaks of Guilford subdivision.
It is a forclosure, so it is sold AS IS, and is a CASH ONLY at closing purchase.
Fireplace in the living room, and a privacy fence in the back.
New microwave, range and dishwasher!
College Road at Friendly near Guilford College Winston Salem NC
Purchase Price: $74,900
Renovation Costs: $3,000(clean carpet and paint)
After Repair Value: $105,000(sold price 5/15/09)
Gross Monthly Rent:$1,200
Cost to Value Ratio: 74.19%
Cash Flow Cow Rule:1.54%
Congrats, you’ve got a winner here.
Better move forward ASAP
Hi Doug. I’m an auditor full time, but I own my own RE investing business. Although I have been around real estate all my life, I still consider myself a new investor. My grandfather was a contractor, and I would go on jobs with him growing up. I started investing (wholesale) in April 2009. I have not had much success. I am a person that is persistent and hardworking, but I have only done one deal. I get tons of leads through my website, but most of the time, the sellers want retail and won’t budge off their price. I want to try something else that is guaranteed to bring me profits. I too have lost a lot of money since April 2009 on coaching courses that didn’t work. I know there is always a need for student housing. I live in AL, home of the 2010 SEC Champions, Alabama. They have several campuses all over the state, including the University of Alabama Birmingham.
Here is my deal. I found a property that is close to UAB. It’s a 3BR/2BA home. I couldn’t find any comps, but Eppraisal gave me a value for the home. The listing didn’t mention any rehab is needed. The pictures of the property are nice. I couldn’t get in touch with the Realtor, so I assumed there are no rehab costs. However, I did try different amounts in the analyzer just to see if it would pass, and it still passed. I tried different repair costs up to $10,000, and it still passed.
Purchase Price: $84,900
Renovation: $0
ARV: $146,625
Gross Monthly Rent: $2,799
Cost To Value Ratio: 57.90%
Cash Flow Cow: 3.30%
Got very excited about your program until I started looking around on Craigslist and locally.
I’m in Santa Rosa, CA with Sonoma State University close-by in Rohnert Park. This area does not seem
conducive to student rentals. I would almost have to steal a house or have extremely high rental rates to make anything work. Here is a cheap, cheap, 4BR house in the area, and the breakdown…and this is the BEST I could do. Probably worse at Cal Berkeley, Stanford, etc. Any ideas???????
I am a small business owner that has been involved in real estate sales and appraisals for over 12 years. Since both the real estate sales and appraisal areas have seen downturns in the past two years, I though it was time to look at other ways to make money in real estate. I am so glad to see a program like yours, in a niche that I would never have thought of. I have information about a potential deal located outside of Springfield, MO, a city with eight colleges and universities in the area.
This is a five unit apartment house with some deferred maintenance.
Purchase price: $25,000
Renovation Costs: $20,000
After Repair Value: $105,000
Gross Monthly Rent: $1750
Cost to Value Ratio: 42.86%
Cash Flow Cow Rule: 3.89%
This looks like a good deal to me. I hope you think it is a good deal as well. I am excited about the potential this market has for my future.
I found a great property in Greensboro, NC. It’s very near a major university (but not the largest one in town) at 312 Gant St. I checked the university stats and found that the university provides on campus housing for only approximately 25% of the students so there should be a good demand for student housing.
I called the realtor to get the repair and rental data. The neat thing is that the realtor was quite helpful and understood what I was trying to do and offered to find student housing properties for me which fit the criteria in your 60 second calculator in cell D14.
This particular property has a purchase price of $41K and renovation costs of $8K for a total cost price of $49K. The ARV is a minimum of $67K and could likely be in the low $70Ks. Thus, the cost to value ratio is a respectable 73.13 and the cash flow cow rule value is 1.84%.
I’m a working senior collecting social security (without penalties) whose first rental property adventure over four decades ago had the familiar landlord nightmares resulting in my retirement from active investing. I’m getting back into the game to fund retirement. Student housing, with your Magic Lease, looks like it might be just the ticket. I can hardly wait for your guaranteed funding video to get going.
Hello,just started doing realestate,no transactions yet.Thanks for the property analzyer,great tool.Gives you more confidence.Never thought about student housing until i listen to your video couple days ago. Found property 0.3 miles from Waynesburg,PA college.190 s.morgan st.waynesburg,pa.4 bedrooms,1 bth,middle school across the street also.
purchace price-35,000
renovation-10,000
after repair value-85,000-100,000 not sure did my own estimate.
cost to value ratio-52.94%
cash flow cow rule-4.00%
rent monthly-1,800
Looks like a great rental
Hello Doug, My name is Joseph Gauthier and I have no prior real estate experience. Truthfully speaking i’ve been unemployed now for over a year and half and find myself wanting to work for myself rather than going back to a employer.
I’ve talked to a realtor in the Grand Rapids MI. area and found 4 properties that have passed through your 60 second evaluation.
after repair value $ 46,800 (based off of property accesment
Rent $1600.00
Cost to value 27.78%
Cash flow cow 12,31%
Deal 2
Price 13,500
Revenvation costs $0
After Repair value $48,900
Rent $ 1,600
Cost to value 27.61%
cash flow cow 11.58%
deal 3
price $8,500
Renovation costs 0
after repairvalue $38,900
Rent $1600
Cost to value ratio 21.85%
cash flow cow 18.82%
deal 4
purchase price $12,500
renevation cost 0
after repair value $26,803
Rent $1600
Cost to value ratio 46.64%
Cash flow cow 12.80%
All deals I figured $400.00 per room, and all houses are 4 bedroom houses. A couple of them do have full basements with possible potential for adding a couple rooms. Also deal #4 needs appliances, I figured about $5000.00 probably a bit high but better safe than sorry.
I appreciate the time you have taken to share your techniques. I am a full real estate agent with income that varies. Therefore, it is critical that I stabilize my income with investments.
The home I found is a 6 bedroom duplex in Cincinnati that has recently been renovated. The advertised price is $49,900 or best offer. It is 1 minute from Xavier University and 5 minutes from the University of Cincinnati. One part of the home is currently rented at $750/month. The other portion is not rented yet. Rooms in the area are being rented for about $400.00 a month.
Here are the figures:
1. Purchase Price:$49,900
2. Renovation:$0
3. Houses are selling for $125K-200K
4. Gross Monthly Rent 6 rooms x $400 a month=$2,400 a month in rental income.
($400.00 obtained from searching rooms for rent on craigslist)
5. Cost To Value Ratio: 40%
6. Cash Flow Cow Rule: 4.80%
I hope this one wins!
FOR UNKNOWN REASON, THE PROPERTY SUBMISSION THAT I WAS WRITING HERE JUST GOT VANISHED.
HERE I AM, DOING IT AGAIN.
Hi. DOUG:
Words are inadequate to thank you for this program. I am a school teacher in New York City and I always wanted to buy properties for vacation rentals in Myrtle, SC and Naples In FL. Thank goodness that I have not been able to do so until as I am now learning about your system of rentals. This is awesome.
I find this property on the Craig lists, very close to Temple University, Philly, PA. I spoke to the owner through the telephone # that he put on the ad. and he was pleasant. THIS IS WHAT WE AGREE TO:
I checked the value using http://www.Zillow.com that a friend gave me to use to confirm the APR. of $450.000 that the owner gave me, I got $400.000. Well, what else can I tell you than YOU ARE AWESOME.
Ok Doug here is my deals then I will tell you about my self
Total of 208 Units in a 3 block area with in 3 1/2 miles for 5 colleges in Illinois
I spent 2 hours on the phone speaking with the colleges asking then do they need housing when I told them I told them I’m working on 208 units they flipped.
1) 40 units 2/1 purchase price $275,000
repairs $ 280,000
ARV $ 2,000,000
GMI $ 28,000
CTVR 27.75%
CFCR 5.05%
2) 100 units 2/1 purchase price $600,000
repairs $ 700,000
ARV $ 4,500,000
GMI $ 70,000
CTVR 28.89%
CFCR 5.38%
3) 36 units 2/1 Purchase price $ 500,000
repairs $ 252,000
ARV $ 1,900,000
GMI $ 25,200
CTVR 38.11%
CFCR 3.48%
4) 24 units 2/1 purchase price $ 250,000
repairs $ 168,000
ARV $ 1,200,000
GMI $ 16,800
CTVR 34.83%
CFCR 4.02%
The reason all for are as one deal because i’m trying to purchase in a package deal with all 4 owners because the property in all together on 3 streets in a 3 block sq.
now if I just purchase them and do straight rentals they would rent out at $650 per unit
but per the colleges 2/1 are 700 plus
there are 2 reg, schools close by to
any way total of 208 unit ARV with the right NOI would make them worth 9 to 11 Million when done
total Purchase price is about 3,400,000 w/ repairs
I have all the numbers here with the cost of repair at a high number they could be lower
I have done a lot of investigation on these units It’s a hot area HOT HOT
Ok a little about my self I have been Investing for 18 years purchased over 2500 houses
had over 350 rentals ( and will not do another single family rental again )
did all this with 10 bucks out of my pocket.
today starting over. 0
If I win I’ll say thank you very much and we both will spread the info from shore to shore
If I don’t win ok but I will not stop moving forward
Because let me tell you and every one out there reading this
I have looked at every JOB/or work there is out there work wise or pay wise
you can’t come near making the money as you can in Real estate no way no how
ALL YOU NEED IS SOME ONE TO HELP GET YOU GOING IN THE RIGHT DIRECTION
AND HELP YOU ALONG THE WAY.
Thanks EVERY
Cash Flow Cow Rule 2.00%
2% Pass
1.50% Pass
1.25% Pass
1.00% Pass
I have never done Real Estate Investing and have been recharged based on your videos re:Student Housing
Thank you, patiently awaitng results
3/1 house next to UMSL is t Louis,MO
Asking price 15,500
repairs 22,000
ARV 53,900
Gross monthly rent 1,200
CTV 70.09
CFCR 3.20
I have been “doing” real estate investing for ever. I got hocked when I sold my duplex twenty years ago and made 20k. I been trying to gt into RE ever since off and on but haven’t been very successful. I am pretty psyched about student housing especially since you have got that great lease with “the adults” backing the tenants up for rent and repairs. I can’t wait to see how to get these things funded so I can put some MONEY into my pocket. Thank Doug!
Dear Doug
i have been a Real estate Broker In NYC for ten years. I bought some fix uppers and sold them for a nice profit in 2003 and 2005. i now own and manage (ONE) Four family building and i can tell you what the headache is with tenants. Secondly, a Nigerian Doctor (friend) here in New York told me few years ago about the STUDENT HOUSING FORTUNE and how he went to Nigeria to Invest in the student housing properties. that are very close to two Universities over there buy i was not moved. i called him today to tell him about Doug’s program and he was proud to tell me that, HE NOW PAY ALL HIS BILLS IN NEW YORK with money transfers from the money that he is making in Nigeria from his two student rentals. Can anyone imagine that?
Doug! Please count me in on this lucrative business. I went to Craigs list today and this is what i found.
My daughter is a student in the Buffalo University, so I chose Buffalo NY.
PURCHASE PRICE: $5.000. (FIVE THOUSAND)
RENOVATION COSTS: $15.000
TOTAL COST: $20.000
ARV: $40.000
RENTS: 300X4 ROOMS: $1.200 per month
COST TO VALUE RATIO: 50.00%
75% PASS
CASH FLOW COW RULE: 6.00% PASS
THIS IS SWEET.
Thanks again Doug and Stay Blessed
Manny
Hello Doug! My name is Ty, I’m 26, and I currently reside in Bridgeport, CT with my girlfriend and her soon-to-be 2 year old son. We also have another boy on the way come July! I am an intern architect with a high-end residential firm as well as an apprentice to project manager for a contracting firm. Since high school, I’ve had a passion to bring my creativity and design skills to an urban setting; more so commercially than residentially. But living in Fairfield County, one recognizes the amount of and the attention to detail that goes into the ‘high-end’ residences I’ve had a hand in drawing and building since moving here.
Long story short; I moved in the area after graduating from Temple University’s Architecture program in ‘07 and I feel like I’ll be paying for that education forever, with no end in sight. The payments have gotten out of hand in addition to rent, child care, car, car insurance, etc. And I’ve definitely over-extended myself especially with the standstill in new residential construction. I’ve taken a couple of real estate courses in college but never invested, became a realtor, or brokered, etc. My education is mainly from literature. The information you have provided in the 1st three videos have got the juices flowing and I feel it is time to at least act on an opportunity to provide for my family’s present and future. I’m ready to hit the ground running but also realize I must take precautions which is why I’m choosing, I think, a winning deal but also one that is with little risk and easy to manage as it is a single-family.
A short walk to Albertus Magnus College and exactly a 5-6 minute drive (2 miles) from Yale University, located on the Hamden/ New Haven border, this 3 bdr/ 2 bth, 1582 sq ft single-family has a…
Selling Price – $46,000 (includes $7,500 in back taxes)
Repair Costs – estimated $40,700 (includes a $5,000 reserve) However, I work for a contracting firm!!!
– just framing inside, some drywall, and needs heating and plumbing
– already has new roof, new windows, new doors, and deck
– electrical is roughed in
– drainage is in place but needs new hot/cold feeds
– no permits were pulled during original rehab
ARV – $135,000
– comps include 3 bdr/ 2bth, 1530 sq ft single family selling for $152,000 on 10/1/09
– 3 bdr/ 1 bth, 1687 sq ft single family selling for $143,400 on 10/16/09
– 3 bdr/ 2 bth, 1428 sq ft single family selling for $158,000 on 10/29/09
Gross Monthly Rent – easily $1200 – $1500
Cost to Value Ratio – 64.22%
Cash Flow Cow Rule – 1.38% – 1.73% (naturally, discounts/cuts to renovation costs easily put it over 2%)
I am looking forward to your decision as I have seen great opportunities from others on this blog. But if I am not chosen, I still can’t wait to see your revealing of tips to guaranteed funding. Best of luck to all and again, thank you Doug for the info. I don’t see myself letting this go to waste.
Hi Doug:
My name is Jaime Castro, I am 54 years old with a family of five, my wife, two teenagers and a handicap daughter. I have been unemployed for the past three months living off my savings and looking for a way to make money. Finances are very tight right now. Thanks for making this contest available to everyone. This opportunity could really help my situation. I am just starting to learn about the real estate business and came across these videos. I appreciate the time you have taken to share your techniques. You are the first investor that offers an opportunity without asking for money at front. That has a lot to say about you. You are the real deal!!!
I found a few deals next to or close to an university here in Florida. There are bank owned apartment buildings across the street also available if you are interested. Now is the time to get into commercial real estate.
Deal #1: 3BR- 2B
Purchase Price: $57,600
Renovation Cost: $1,669
Cost Price: $59,269
After Repair Value: $93,393 (Comps)
Assessed Value: $114,000
Gross Monthly Rent: $1,200
CTVR: 63.46%
CFCR: 2.02%
I may need your help on this one. This is a 42 student housing complex w/upside @ Western Carolina University. It has Ocupancy rate of 100% with a Cap Rate of 6.75% and N.O.I. of $114,750. It however has a hefty price tag of $1.7m.
I recently attended a 4 day live VSSI (Virtual Short Sale Investing) event in L.A. and one of the presenters was Karen Hanover talking about the recent and more coming foreclosures in commercial. We were given an opportunity to partner with DC Fawcett of VSSI (I’m a current student) to do short sales of commercial properties. It required to pay to attend a boot camp to learn about commercial property investing. I couldn’t afford to take on another training/partnering opportunity at the time. However, Karen gave us some key information about knowing whether a property was suitable for investing in. She talked about Cap Rate and Net Operating Income but just touched on the subject. I took notes but there was a lot to know, hence the boot camp.
I don’t know if this is a suitable application for your Profit Analyzer. It appears to be too pricey to be worthwhile for our purposes. What do you think? I would appreciate your input.
I didn’t fully download “Profit Analyzer” to the fullest extent but from the preview it appears
to me like it’s a program built into a Excel spreadsheet which accounts for various cost
factors on the specific property you put into the program. Depending upon the age of the property; for example the property pictured would need “upgrading” for newer devices.
Student rentals are “a Diamond in the rough” and require extensive searching by the targeted audience to find affordable housing. I’m intrigued by it enough to expand on the thinking.
Since being introduced to this new concept, I haven’t had a chance to expand on the thinking as yet. But a consultation with someone like yourself, would definitely give a person an advantage over others. Thanks.
Doug I just wanna tell you that God is truly going to bless you for helping others. You could have easily charged us an arm & a leg for this information, but you didn’t. Just knowing what to do is all some people need to get going without any further coaching. Thanks again.
Doug,
I decided to give the Profit Analyzer a try with the 21 unit (42 student) housing complex near WCU. Assuming that the value is $138/SF based on two other listings in area, and N.O.I. of $114,750, rent for each room could be $800 ($400 each student). The offer price would have to be at $1.3m (it’s an older unit) with minor repairs and value $1.8m based on $138/SF for 13,000 SF.
So here’s the deal:
Cost of Purchase: $1,300,000 ($400,000 less than listing price)
Cost of Renovation: $40,000 conservative (100% occupancy so may just need interior painting/cleaning)
After Repair Value: $1,800,000 (based on $138/SF for 2 other student housing listings near campus)
Gross monthly rent: $16,800 (based on N.O.I and $800/unit)
Cost to Value Ratio: 74.44%
Cash Flow Cow Rule: 1.25%
Congrats you”ve got a winner here.
Better move forward ASAP
I know this is not the typical application for this tool, but the Profit Analyzer does make the deal look pretty good if we can purchase at a discount. The demand for student housing at the University is very high, so there is great upside potential. There are two other student housing complexes for sale. This does make you wonder what is going on for these to be for sale. I will give a call to the Craigslist poster to get more information tomorrow.
Doug here is a great 196 unit within 1 mile of a college….
Purchase price $4,508,000.00
renovations $100,000
ARV $6,200,000.00 ($1,692,000 equity) WOW
Cost to Value 74.32%
Cashflow Rule 2.54%
I have a a deal in the works to pick this up with very little down…moving forward… working on my investors
I grew up in a college town and my grandfather did this stuff…well!!
he passed when I was only 12 and it was not until I saw your video that I remembered my roots and it is in STUNDENT HOUSING…thanks so much…not only did the lightbulb light up for a business opportunity…but this brings back alot of good memories of my grandpa helping him with his houses… thanks so much. cant wait to see more videos
Doug, (I bet you’re getting tired of me!)
Here’s a deal in Chicago. My daughter currently attends Moody Bible Institute (Senior). She and her husband (Moody alum) rent an apartment downtown in low income highrise on Hill St.
Estate Sale. 2 bed/1 bath yellow brick ranch across the street from Schmidt Elementary School. 1 year old roof. Huge unfinished basement has room for 2 more bedrooms. Enough space to transform the 1.5 car garage into a 2.5. Lots of potential. Sold as is; needs work.
Cost to Purchase: $69,000
Cost of Renovation: $40,000 (Rough est. add 2 bdrm/1bath in basement – clean/paint)
Cost Price: $109,000
After Repair Value: $150,000 (zillow estimate-may be a little high)
Gross Monthly Rent: $2,400 ($600/bdrm with 2 additional bdrms)
Cost to Value Ratio: 72.67%
Cash Flow Cow Rule: 2.20%
Congrats you’ve got a winner here.
Better move forward ASAP
Property located at LaSalle University
Purchase Price: $64,999
Renovations: 30,000
After Repair Value: $135,000-160,000 based on Comps
Gross Monthly Rent: $2000+
Cost to Value Ratio: 70.37%
Cash flow Cow rule: 2.11%
Just started looking at rental properties but I love your niche of the college market. Couldn’t be more simple stupid which is why it works.
I found a deal & plugged the numbers into the analyzer, here is what came out the other end:
It’s a 19 unit complex of 4 & 5 plexes near Albany State university in Georgia.
Purchase price $90,000 for 19 units
Rehab cost $75000
Gross monthly rent $6175
Cost to value ratio 44.53%
Cash flow cow rule 3.74%
I love to analyze commercial property. I’m trying to get other serious investors together to get involved in niche investment strategies like yours but having limited success – any pointers?!?
Hi Doug,
Here are the details:
Purchase Price: $7,800
Renovation: $0.00
Cost: $7,800
After Repair: $26,000
Gross Rents: $525
Cost to Value: 30%
Cash Flow Cow Rule: 6.73%
This property is near Youngstown University.
About myself, I am a novice investor with two kids under 2 yrs.
I have a regular job working for the Gov’t but would like to be a full time investor.
Thanks!
Doug,
My name is Deon Waddell I have to say this is exciting material. I have been trying to get into the real estate game for 8yr and could never get started. I have bad credit and no cash due to a divorce. However, I bought of lot of no money down courses trying to find a way to get started. Nothing ever panned out except for a lot of disappointment. I discover wholesaling which got me excited in real estate again. I’ve have been actively searching for my first deal. I’ve been looking at a lot of properties and making offers. When I received this email link from Michael Jake (localmentor.com) my mouth dropped and I can’t stop talking about student housing. I have a deal I located close to Pittsburgh, there are over 7 colleges and university within 3 miles of each other. The deal is about 1 mile away from all of them.
Purchase Price is $120,000
Renovation Cost is $ 100,000
After repair Value is $315,000
Gross Monthly Rent is estimated from the agent $4,500
Thank you for making this opportunity possible for me to start making an investment that would be profitable now and in the near future. I have been interested in real estate and at property near the University of Alaska Fairbanks. I would like to open rental units to college students possibly on a yearly or semester basis.
There is a multiplex at 1818 University Avenue, Fairbanks, AK 99709 on sale for $475,000 with $95,000 down, 5060 square feet, built in 1962 for owner occupied investment with estimated monthly payments of $2,157.60.
This would be my first real estate investment. I hope to secure adequate financing and welcome this opportunity for you to provide all the training and knowledge you have toward making this a huge success in Fairbanks, Alaska.
Hi Doug:
My name is Mark Rozario. I live in Canada, just about one hour’s drive from Niagara Falls, NY. I am 59 years old, and I am currently a small landlord in Ontario. I have not done any student housing yet. I feel that student housing is easier done in the US than in Canada. Hence, because of proximity to me, I searched Craigslist for Niagara Falls/Buffalo, US. There was not much to choose from, so I chose a property that has an asking price of $52,900 (See link below). The seller says “the property has been updated in and out”, and hence there is no Renovation Costs, and hence the property “fails” because the “After Repair Value” is the same as the Cost Price. Even so, I think that there are possibilities with this 5-bedroom property if/when the current tenant moves out. The current tenant is paying $1,300/month. The property is said to be within “Walking distance to University of Buffalo”, in which case if used for student housing could fetch a higher income.
the deal is a 5250 sq ft 5 unit apartment. 10 miles from college. 4 3 br units and 1 1br in basement 49,000 asking price 20,000 fix up . reo with financing set with 10% down. Offer 40.000 with 5000 down and 15000 cash out for repair and they pay closing cost out of the 5000. fmv 150,000. three month repair with three units ready in first month. $4000 per month rent. looks like a good deal to me. I have 2 duplexes 1 sfr and a 20 unit 1/2 with students and a 5 unit that I assumed from a bankrupcy.
Have modular home builder who built a “fraterenity” house for his son in Gainesville, University of Florida. His plan was bit more palatial than necessary. But basically a 7 unit plus community room containing 2,112 square feet. Each unit is 12 x 20 with bath and 5×5 closet. This allows eneough room for a desk and under conter fefrigerator, microwave etc.. Four up and 3 down leaving a 12 x20+- first floor room for the big TV and kitchen. This is also large enough to house two students per room but I don’t know if there is a markert for that.
The factory cost is $40-$45 PSF. The foundation with install is $30,000. I found a $35,000 lot within walking distance (easy bike ride) of the St. Petersburg USF campus so total is $157,000. I think resale is around $100 PSF or $210,000. The dorm is charging $800 per month for 9 months. I think I can get at least $500 per month since new etc. This $3,500 just makes 75% cost to value and 2.23% coverage.
I can manufacture this and ship anywhere your student wants one.
Comes in four parts to be assembled on site with crane and takes 3-5 weeks after order is placed.
Hello Doug,
My name is Michael, from Westchester, New York and I want to thank you first for getting my blood flowing. This contest was exciting, just to be in the race…so cool. Don’t know about all of the other contestants, but as simple as your contest is. As available as information is via the internet. In the time from the start of the competition to now $4:30pm Sunday afternoon. There was no way for me to get contractors estimates for the six properties I found. So I stacked the deck against myself, and what I mean by that is that I gave my property a $25,000 renovation cost! I doubt very seriously that it will cost $25,000 to get this house up and running. But…I still have a winner!!! Here’s how she plays out…
Just as a point of matter…we can go as low as $2,300 on the rent and still this is a WINNER!
Anything less than $25,000 on the renov. just adds to the sweetness of the deal! I’m excited!!!
This property by the way is near Hofstra University, which happens to be a private university…cost is not cheap. The $2,300-$2,750 should not be a problem. Thanks Doug for stirring the juices!
Hi, Debra here. I’m 55 years old and living on a fixed income. :-< Retirement from The Ohio State University. I have fair credit, NOT a dime to my name, and am a brand new RE investor and have no idea what I'm doing. I NEED this. I NEED this. I NEED this. Easily found one and could easily find others.
Doug:
Thanks for all the great information. About 10 years ago, I purchased 3 student housing rentals out of state that I never visited or managed. Three years later I sold them for a 800% profit. The best real estate investment in my 15 year career. Unfortunately, I turned the “4 houses into the hotel” and bought a 30,000 square foot commericial building with the student housing profits. The commercial investment did not go well and I am back to square one. Your videos reminded me of one of the ways I built wealth in real estate.
Here are a couple deals I found. I look forward to your funding video tomorrow.
Hi Doug -
Wow! You really know how to get an old guys heart pounding! Fantastic information. I’m 64 yrs young, married to college sweatheart for nearly 42 years. Laid off in Oct, ‘08, and unable to find JOB for man my age, but am looking at starting a new company helping comm owners lower their federal income tax and increase their cash flow at the same time. I invested in real estate in early 80’s in Houston, and then lost my butt when the market turned south, like in today’s market! Have had a longing to get back into R/E, and this may be the ticket?!
I found three properties that “Passed!” Two in the Houston area and one in Dallas. But, I did not find them with the keywords you suggested. Did not work in Houston and Dallas. Used “college rehab” that one other viewer of yours suggested, and it worked. Strange…
Prop #1: Dallas, TX
3 BR/1.5 Baths/Garage/1.048 S.F./B-fast Nook,Central A/C, Central Heat, Family Room, Living Room/Tile Floor/Yard. Property Rehabbed in 2007. $2,000 Deposit Wins this Contract.
Purchase Price: $32,000
Renovation Cost: $3,000
After Repair Value: $62,000
Gross Monthly Rent: $800
Cost To Value Ratio: 56.4%
Cash Flow Cow Rule: 2.29%
Purchase Price: $35,000
Renovation Cost: $12,000
After Repair Value: $67,500
Gross Monthly Rent: $900
Cost To Value Ratio: 69.63%
Cash Flow Cow Rule: 1.91%
Prop #3: Houston, TX
3/2/2, 1,761 S.F., Central A/C, Heat, Dining Room Dishwasher, Dryer, Fireplace, Living Room, Washer
Purchase Price: $51,000
Renovation Cost: $8,000
After Repair Value: $87,000
Gross Monthly Rent: $750
Cost To Value Ratio: 67.82%
Cash Flow Cow Rule: 1.27%
Thanks for the opportunity to participate in the Contest. I’m sure you have way more homework than you expected. Send some my way to help you.
There really are no losers in this, are there? You will have generated an enormous database of contacts and properties with which to wend your magic, one way or the other, as I see it.
Hope we can work together.
Onward & Upward!
Terry L. Schell
After seeing your great Magic Lease video, I knew you had something good going! Only after educating myself over the last two years have I begun to see a profit in my formerly ‘bad hobby’ rental business. I now am making a profit and looking to expand.
This deal is less than 2 blocks from USC! The address is 3810 Woodlawn Ave., Los Angeles, CA. It is a duplex that was recently upgraded, then had some vandalism. I have a message in to the realtor to find out the estimated repair costs, but I made an assumption after viewing the aerial and street maps of the neighborhood and plugged in a number – I am a mover! Next, I reviewed going rents by using Craigslist.
The asking price is $99,000, the area values are $229,000, the repairs number (I figured exterior paint job and minor repairs) is $5,000. Going rents in the area start at $975 and go up to $2700 for a single room; I used $800 per room. (net). This puts the Cost to Value Ratio at 45.41% and the Cash Flow Cow Rule at 2.31%, using your awesome Cash Flow Tool. This is a place with great built in equity and cash flow!
So there you have it, Congratulations on your achievements to date, Lisa
I have been looking forward to investing /working real estate virtually for about 1 year…
I am a “have not done a deal yet” beginning investor. I have years learning this and wanting to just do it… And now with the different market, I have been studying more new courses. Preparing with a new model.
I am now working on my buyers list, which is key…
I really like the idea of student housing. This would be great if I could get it to work for me!.
It looks like I found a deal that smells right…
the Cash flow tool told me I have a deal: 816 NW 11 ST 602, MIAMI, FL 33136
2/2 never lived in condo
within walking distance to University of Miami Medical Campus.
and Jackson Memorial Hospital, Great city view. Close to train station. 24 hr security.
Purchase price: 80K
Renovation costs: 1K
After repair value (Zestimate): 156K
Gross monthly rent: $1,100/mo
Cost to value ratio: 51.92
Cash flow cow rule: 1.36
Congrats, you’ve got a winner here. Better move forward ASAP
I hope so…?
Doug,
I will try this again, as my internet system keeps going out and I have to start over again. I am 22 years old and know that realestate is the way to make money and cash flow. I have not had the cash needed to go through with the deals or anyone to show me how to get the money. I live in So.Ga. there is a State College and Tech school here, Craigs list did not pop up any Rehabs and was unable to get in contact with the people to ask questions as it is Sunday also. The ones I found were:
>$22,000 FIRESALE 5bd needs paint, plumbing upstairs could be duplex $1,000 ernest money. view at haus-9u4zh-1651703779@craigslist.org
>3bd-2b, 100yd from college,vacant, NO PRICE, $995 rent : hous-gdapd-1628667302@craigslist.org
>$141,500, 3bd-2ba, $850.00 mo rented and a $124,000, 2bd-2ba restored: jd@jdyeager.net no other info on these.
>$239,900, Renovated, 2-1 rents $385.00mo, A has 4 units, B has 3 units, 800sq ft per unit, from HomesandLand book MLS#77064
>2br upstairs/2down, leases $1,000mo one block from college, MLS#81627 Hm&Lnd book
The above is what I came up with as I could find the details tomorrow but it would be too late to summit then. This is a very exciting way to do realestate and would like the chance to put it into action. I would also like to travel the way you did especially going to Australia that is where my only living uncle I have never met in person lives in Melbourne. I am taking foreign languages that would help with my travels and would like to earn my degree from college the cash flow would definitely help to fund all that.
Doug,
I found a shadow property near the Colorado State Uni. 10 rm, 6bd, 3bth, 3845 sq ft
price: $335000 My purchase offer: $285000
rehab est: $10000
ARV $395000
rent: $6000
Great video and thank you for the opportunity you’re giving us. Your 60 Second Property Analyzer is awesome…really quick and easy to use!
I’m a single dad of the 2 little girls, 4 and 6 years old, struggling to make ends meet when I loss my job about couple years ago. I then started my online business trying to survive through this tough economy. I just got involved in Real Estate last year when there were so much foreclosures and short sales across the nation, and then came across your blog on Student Housing Investment (which I have never thought about). After watching your videos, I was so excited that I started doing some research on properties for Student Housing, and I found several deals but there’s one that I feel will give a great cash flow and excellent ROI, especially in today’s financial climate. What so nice about this property is that it is zoned in R10 for Multi Unit Residential Housing with multiple unit income potential, lots of equity potential and lots of development potential on the block.
Cost To Value Ratio: 30.57%
Cash Flow Cow Rule: 2.34%
I believe if we can get this deal funded, the profit will be unbelievable! Look forward to hearing from you next week and thanks again for this opportunity!!!
Doug, found another one near Colorado State Uni.
pre forecloser 2349 sq ft 6bd 3 bth
cost $195000 my offer $165000
rehab $10000
cost $175000
ARV $210000
rent $4800
Cost to value = 81% I felt the rent at $4800 or higher because of the 6 bd would make this a candidate.
Hi Doug, First, let me start off by saying that I’ve heard a lot of gurus and have attended a lot of seminars and none have got me as excited over an opportunity as yours! Your philosophy makes sense! Virtually turning houses into apartment type rentals, mitigating your losses and putting the parents on the line for property upkeep -it’s great!
I’m a Yale University graduate that is tired of working for a paycheck! I’ve been investing in real estate since 2005, bought 5 rentals at the height of the market and have been working my way out of the ditch since! I’ve recently acquired my CA broker’s license and have been working on an RE business flipping REOs, so your philosophy is right in line with my current business plan. Flipping student housing REOs seems like a much better approach! Now with my wife diagnosed with breast cancer and my newborn having turned 1, I need to make this work!
Here’s a couple of deals that others have not found:
KCMO
1. Purchase Price $15,900.00
2. Renovation Costs $20,000.00
3. After Repair Value $78,000.00
4. Gross Monthly Rent $1,800.00 ($450×4)
5. Cost To Value Ratio 46.03%
6. Cash Flow Cow Rule 5.01%
Providence, RI
1. Purchase Price $50,000.00
2. Renovation Costs $40,000.00
3. After Repair Value $240,000.00
4. Gross Monthly Rent $3,000.00 ($500×6)
5. Cost To Value Ratio 37.50%
6. Cash Flow Cow Rule 3.33%
Thanks for the opportunity and please keep the information coming!
Okay I’ve got a possible. I’m waiting for a callback.
It’s just gonna make the minimum, so I’m still looking, but I did NOT want to end the day without finding at least one.
purchase asking: 79900
repairs: still waiting for estimate, but rehab is half done with kitchen cabinets etc installed
after repair: 115,000
cost to value: 69.48% …but this is before cost of repairs, where even just 5k in repairs makes it 73.83
SO I would have to make lower offer…but I doubt they expect asking price.
rent: 1,200
Cost to value: 1.50….down to 1.41 if 5k required at this purchase price.
Doug
Found this 4 bed/1 bath 1360sq ft sfh next to both Florida State University(10 blks) and Florida A&M (5 blks) University and next to a Country club.
Rent ready or rehab for retail sale
Ask: $60,000
AS-IS $100,000
rehab: $15,000
ARV: $144,500
RENT 4 x $500 = $2000/mo
I’ve already contacted Realtor and offered $55K cash
Hi Doug,
Thanks for this opportunity. I found a good prospect within the first 15 minutes on Craigslist!
I am 55 years old and have been self-employed most of my life as a graphic designer. There is no way left to go but up from here! I got interested in buying real estate below market value 15 years ago when I was looking for a home for my young daughter and I. I have always been good at finding deals, I call it treasure hunting. I realize now how very little I knew back then and am excited about the incredible opportunity happening in today’s market. My dreams are being realized by getting out there again. I have found my direction and I am finding deals! I thank investors like yourself who are giving us Newbies for giving us this contest with possible funding opportunities, and great mentoring!
Property #1 Los Angeles, duplex near USC
Purchase price: 99,000
Renovation Cost: 25,000 (high estimate)
After Repair Value: 215,000
Gross monthly rent: 1,700
Cost to Value Ratio: 53%
Cash Flow Cow Rule: 1.76%
Hello Dug: I am a blind mobile entertainment company who has recently decided to get in to real estate investing. If I can do this anybody can! The deal I found is at a 75% cost to value rate and a 1.56 on the cash cow rule. It struck me as really funny that the property owner put the statement “if you are looking for a cash cow property look no further” in his property discription. My first thought was does Dug already own this? but here it is and I hope to get the possability to work and learn from your valuable experience. Thanks
List Date: 3/16/10
Property Type: Multifamily
Status: Available
Address:
To be disclosed if you pick this deal or are interested in working it with me.
Harrisburg, PA
Number of Acres: 0.25
Number of Units: 10
Number of Bedrooms: 12
Number of Bathrooms: 11
Sale or Lease: Sale
List Price: $295,000
Description of Improvements:
Great rental property with absolutely fantastic income potential
How to Access property:
Call me at 1-877-2303208 and let me know how to contact you
or visit my website
http://www.housesellerguy.com and click on the wholesale deals button to be notified of any deal like this I find. Note I do not have this property under contract I found it on a website of another investor so we need to move on it as soon as possible!
Property Owner’s Comments:
Looking for a “cash cow” property? Look no further!
Information:
Rental Income Sales Price $295,000 Make me an offer!!!!!
Street (Front Building) Size of Apt. Monthly Payment Annual
Apt 1 1 BR / 1 Bath $450.00 $5,400.00
Apt 2 Studio $395.00 $4,740.00
Apt 3 Studio $395.00 $4,740.00
Apt 4 Studio $395.00 $4,740.00
Apt 5 Studio $395.00 $4,740.00
Apt 6 Studio $395.00 $4,740.00
Apt 7 Studio $395.00 $4,740.00
Total Total
$4,615 $55,380.00 Note I think we could raise these rental values if it was being utilized as student housing.
Expenses
Monthly Annual
Common Area Electric (PPL) $100.00 $1,200.00
HRG Utility Bill (water,trash + Sewer) $991.66 $11,900.00
Insurance $1,000.00
Taxes $2,765.00
Maintance + Vacancy Heathly 10% $5,538.00
Total
$22,403.00 Note I believe that it may be possible to lower these costs if we utilize your magic lease and make the tenants responsible for some of them.
Profit after Expenses
$32,977.00
This property is in Harrisburg PA and is 3.64 miles from one college center that serves as a major hub for several colleges in the area. The travel time to this center is just 10 minutes. It is also just 2.7 miles (6 minutes travel time) from a community college that has more than 9000 students. Yet another college is just 5.7 miles or (11 minutes travel time) away. There is a technical institute 8 miles or (15 minutes travel time) from this complex. There are actually too many colleges and technical schools in the area to mention here so here is just a few.
Harrisburg University of Science & Technology (.076 miles 2 minutes travel time)
Penn State Harrisburg (6 miles or 12 minutes travel time)
Eastern University(3.85 miles or 11 minutes travel time)
Widener University (6 miles or 12 minutes travel time).
Empire Beauty Schools(3 miles or 9 minutes travel time)
When I saw your first two videos, I thought “interesting idea” but still wasn’t convinced that it was something I could do or that it could be as easy as you stated. I’ve been dabbling in learning about REI for the past 4 years. Worked on two small rehab/flip deals w/a friend – make a small amount of $$ on the first deal but got seriously “burned” on the 2nd and busted up a longtime friendship over it! Was still interested in getting into the REI game, but didn’t have enough guts or any money left to do so on my own, so I just watched from afar. Decided at the beginning of 2010 that I was tired of working the 9-to-5 job and needed to find something else to do from home and thought about REI again. Took my last bit of savings and ordered another RE system-in-a-box. Two weeks later I was laid off from my job of 10 years!! Was petrified, to say the least b/c now I really needed to get something going to bring in some SERIOUS cashflow!!!
Anyway, when I looked at your videos, I totally was not going to submit anything for the contest; but, after reading a submission from another person referencing the DC area, I thought I needed to get in the game b/c I don’t want to have to find another J-O-B. I want to work on my own terms, so here goes…
Purchase price = $60K (single family home zoned as split unit)
Repairs = All cosmetic – $15K (to rent) — $40K (for resale)
Comps = $70K-190K (I used $130K)
Rent $400, for both units, could be more
Taxes = $2200/yr
For two (2) units, I used rental price of $1000
Good structure; first floor and basement gas; 2nd floor baseboard heat. Dry basement, good roof, good electric. Original structure is 3BR/2BA house. Near Johns Hopkins University. New apt. bldg. across the street and coming soon, Walmart and Starbucks a few blocks away. MOTIVATED SELLER.
W/Rent = $1K, Renovations = $20K and ARV = $130K
CTV = 57.69%
CFCR = 1.33%
W/Rent = $1K, Renovations = $15K and ARV = $100K
CTV = 75%
CFCR = $1.33%
I love the analyzer tool!!! I ran several different scenarios through it and the lower the cost of the renovations, the lower I can drop the rent (if needed) to still make the deal work.
I’m sure this isn’t the best deal that’s been posted but I can hardly wait until you post the funding video. I found a couple of other SFH that are set up as multi-units but are not close to schools but close to various industries (i.e., Johns Hopkins Hospital). I’m sure they could be used for medical resident housing b/c of their promixity to the hospital. Do you think the same strategy could work those units as well? The CTV’s are around 57.69%. Thanks for your help and the deal analyzer! I’m feeling like I can really do this for a living!!
Doug
MY SECOND DEAL
Three separate properties in a package deal total of 11 bedrooms (11x$400 = $4400.00)
Ask for all three: $252,900
2 blks from University of Toledo in Toledo, Ohio
Updates to properties include: NEW windows, doors, electrical, pex plumbing, fresh paint, dishwashers, glass block windows, fixtures, all appliances stay, privacy fence, hot water heaters and more!!
Hi Doug:
I found a deal; please take a look at the result of the analysis and see what
you think; I have a few more that I will try to submit tonight.
I am a small time investor “wanna be” having done no more than two
very good deals in the past 10 years; but very up on studies, workshop
and webinars. I’m ready to go. My name here is a pseudonym until I get
a deal on contract.
I listed my deal below and expect to try to get another before midnight.
Here is the deal:
Purchase Price $149,900.00
Renovation Costs $ 20,000.00 *Eyeball Estimation
After Repair Value $202,667.00
Gross Monthly Rent $ 1,100.00
Cash Flow Cow Rule 5.50%
2% Pass
1.50% Pass
1.25%
1.00% Pass
NOTE:
The house is kind of “old fashioned” in style, though very sturdy in material;
but it could use renovations and the “eyeball” estimate is way below the cost I
arrived at here, which is $20,000.00
Hi Doug,
I am a real estate investor who has not done a deal and would very much like to be helped to do this one. I have listened to a lot of webinars but have not had the money to get started. When I came across this property I just had the feeling it is do able. Please help me.
I not sure the analyzer can give me an accurate percentage because my property is good condition.
The owner has had the property for 30 years. Apparently he has been managing it himself and keeping
up with the repairs. He has not been big on advertising so it is only 40% occuppied. He has owned it
free and clear and is just about getting ready to retire. He is financing 80% of the cost of $1,200,000.00
for 5 years interest only. The interest rate is negotiable I was told.
It is across from a college in Florida and breaks down as follows:
55 units
31 one bedrooms
4 two bedrooms
20 effiencies
$9015.00 monthly rents 40% occupied
$97,000.00 yearly
$275,000 yearly with 80% occupancy.
The cashflow calculator told me .97%
don’t put anymore money in the deal.
I really hope we can work together.
Ruth Gordon.
Hi Doug:
***Note***
This property is located at
80 Audobon Ave, Clearwater, Fl
I found a deal; please take a look at the result of the analysis and see what
you think; I have a few more that I will try to submit tonight.
I am a small time investor “wanna be” having done no more than two
very good deals in the past 10 years; but very up on studies, workshop
and webinars. I’m ready to go. My name here is a pseudonym until I get
a deal on contract.
I listed my deal below and expect to try to get another before midnight.
Here is the deal:
Purchase Price $149,900.00
Renovation Costs $ 20,000.00 *Eyeball Estimation
After Repair Value $202,667.00
Gross Monthly Rent $ 1,100.00
Cash Flow Cow Rule 5.50%
2% Pass
1.50% Pass
1.25%
1.00% Pass
NOTE:
The house is kind of “old fashioned” in style, though very sturdy in material;
but it could use renovations and the “eyeball” estimate is way below the cost I
arrived at here, which is $20,000.00
Detroit Michigan, brick 2 family flat for sale on the eastside of Detroit. 4 bed total. It needs rehab. It does have new windows thruout including glass block in the basement. It needs both furnaces, hot water heaters, both entry and side doors, both kitchens and baths. $5500 in taxes are owed. Rehab needs to be completed in 6 months.
I am waiting for the seller to reply as to suitability for student housing, and possible rehab cost estimate.
$375 room rent arrived at from Craigslist as lower but not lowest rent for students in area.
I am 67 and live on social security and have bills and have grown children I would like to leave a way to make a decent living and be free, plus real estate has always fascinated me, especially creative financing and management. Real estate HAS to be the way to go: I will never forget creating 95,000 more in 5 minutes of negotiation, years ago. What a high!
This won’t win the contest but I wanted to put it in anyway because it’s still an example that there are deals out there and may be a decent investment. If not, the criticism would be beneficial.
Arthur here. I’m 49, married, and all 3 of my “kids” will be in college this coming fall. We’ve bought and sold some Real Estate, but then we got kids and started a different (non R.E.) business. Currently we have one 3-unit apartment building.
Our credit is now shot due to two huge medical bills and the economy crushing our business of 17 years. So, now we’re trying to (or rather, MUST!) get the Real Estate going again quickly to save both our home and our 3 Unit Apartment building from foreclosure.
We never wanted to do Student Rentals, but your Lease seems to cover all the potential problems.
I looked quickly and didn’t find much on our “local” craigslist that worked way out here in the boonies, so I checked the MLS listings. Here is the 1st one:
It is only 6 miles from a small College (not sure of their housing situation) and 8 miles from both a Community College AND the biggest University in our state (BOTH of which do not have enough housing!). It is listed as a 5-Bedroom, 2-Bath. It WAS an illegal duplex until zoning found out. It is already “Handicap Accessible”. And, it also happens to be within walking distance to a public picnic area on a lake.
Purchase Price: $89,900
Renovation Cost: $10,000 (may be a little high)
Cost Price: $99,000
After Repair Value: $350,000 (Guess… a nearby 5-Bedroom ON the lake is priced higher)
Gross Monthly Rent: $2,500
Cost To Value Ratio: 28.54%
Cash Flow: 2.50%
HOWEVER – I SHOULD be able to add at least 3 more bedrooms upstairs (maybe more?). Adding 3 bedrooms would make:
Gross Monthly Rent: $4,000
Cash Flow: 4.00%
(and I have no idea what the After Repair Value would be on an 8-Bedroom house)
All the Rents and Cash Flow above are based on Single Occupancy per Bedroom. If half were Double Occupancy (and I know they are big enough) and I charged a little less per person for the doubles, the numbers would change to:
Gross Monthly Rent: $5,200
Cash Flow: 5.21%
And this is only the first one to come up on my MLS Search! So, how’d I do?
It’s now almost 10PM Eastern. I think I’ll call it a night… and have more fun Monday morning looking for more deals!
I usually have plenty of time on the weekends; but wouldn’t you know I was extremely busy. Figures. I was so excited viewing your videos, I was hoping I’d have time to find something and enter the contest. I am a wannabe RE investor, although I do have a rental unit in CO that is a cash cow. I just decided to keep the place and rent to students after my daughter graduated in 1997. I’ve often thought of doing it again, just afraid to do on my own. So I understand what you are saying. I’m just in a place right now where I can’t afford to make a mistake, and no money in which to get started. So this would be a god send if I would win your contest.
In reading over the comments of others, there are many more desireable offers other than mine, but I’m submitting anyway. If I can, I’ll submit more later.
I live in OH, so I looked in OH; however, I know this can be done anywhere.
Location for unit is Oberlin
4 Bdrm 2 Bath
Finished Basement is a plus
Purchase Price $99,900.
No renovations
Prices of nearby sold homes $140,000.
Monthly Rent (low est.) $1600.
Cost to Value Ratio 71.36%
Cash Flow Cow Rule 1.60%
Thanks so much for giving us this opportunity. I look forward to working with you.
Good luck to everyone.
Hi Doug
My name is Chris. I have no experience in real estate. I’m very excited about this opportunity to get this deal funded. I’ve always wanted to invest in real estate. I work a ton of hours and has always wanted to obtain passive income. My deal is near Wayne State University in Detroit, MI.
Here is my deal:
Purchase price: $59900
Renovation Cost: $2000 (Bank Owned but doesn’t require much repair.)
After Repair Value: $200000
Gross Monthly Rent: $1500
Cost to Value Ratio: 30.95%
Newer Downtown Luxury Condo in Woodward Place.
3 bedroom, 1.5 baths
$500/month per bedroom
Detroit Michigan, brick 2 family flat for sale on the eastside of Detroit. 4 bed total. It needs rehab. It does have new windows thruout including glass block in the basement. It needs both furnaces, hot water heaters, both entry and side doors, both kitchens and baths. $5500 in taxes are owed. Rehab needs to be completed in 6 months.
I am waiting for the seller to reply as to suitability for student housing, and possible rehab cost estimate.
Owner replied:
It is about 20 minutes from Wayne State University, 30 minutes from University of Michigan-Dearborn, 30 minutes from University f Detrot mercy and Marygrove Clege. The rehab I would estimate about $12,000.
Working to pick up properties while the gettn is good. I love your approach to the Student Housing market. With several very large universities in my own back yard I look forward to some exciting real estate investment opportunities.
Here are a couple of properties in the Tempe ASU area…hope to hear from you!
REO 3br /1.75ba Tempe Rental
Purchase $89000
Renovation $8000
ARV $130000
Gross Mos Rent $1500
Cost to Value Ratio 75%
Cash Flow Cow Rule 1.54% Pass
Try searching for college rehab, college or rehab on craigslist, and from there look for properties that are near colleges and/or universities. Sometimes if you don’t find anything there, then try out different city or state. I’m pretty sure you’ll find something there.
$300000 Cash Cow – 11 Units – 4 duplexes & 1 triplex .81 acres – 27k/unit (14202 N. 12th Street, Tampa FL)
Short Sale. Wow – 4 block duplexes and 1 triplex = 11 units
9 – 2br Units, 2 – 1br units
0.81 acre lot close to USF, Busch Gardens, Lake Magdalene, and local parks, restaurants and shopping.
Sale consists of 14202, 14204, 14206, 14208 & 14210 N 12th St in one package – at an astounding $27k/unit. Wonderful Property could produce almost $80k in income with effective property management. Run your #’s as this is a great cash flow property even with moderate vacancy, the return/cap rate can be fantastic for this cash cow!
After Repair Value $690,000.00 / 8 – $75,000.00, 1-90,000.00 / Unit
Gross Monthly Rent $6,8000.00 / 8-$700.00, 1-$1,200.00 Units
Cost To Value Ratio 0.498550725
Cash Flow Cow Rule 0.019767442
Congrats, you’ve got a winner here. Better move forward ASAP
I was a design/contractor/builder in the area since 1980’s. I have done the heavey lifting in this
business now I just want to push paper around. Gotten to old and tired for most of the B.S. in the business.
Seller’s Description:
S. Broad ATTN LARGE FAMILY 7br/4ba, Absolutely gorgeous, Everything all NEW, hwd flrs, c/a gross $5k/mo. or buy 3% down, net $3k/mo also rent 215.292.****(Any date or time associated with or mentioned in this listing may not reflect an upcoming date and may have already passed. Please reference the date the listing was updated as a baseline. When in doubt, please contact the agent/broker/seller directly.).
List Price: 5,000
Rehab cost: 0
After Repaired Value: 120,000 Lowest priced house of similar size on Realtor.com in same zip.
Gross Rent: 3,000 This figure is in the Seller’s Description.
Cost to value Ratio 4.17%
Cash flow Rule 60.00%
Hi Doug,
These numbers do seem incredible and maybe their was a type O on the purchase price of 5K. However their is no time to verify the numbers before the contest closes.
Doug I have been in real estate since 93 and in seventeen years ( Woo has it been that long ) I have rehabbed 15 houses and the net result is that I am living in a house with a 878.93 payment INTEREST ONLY and 50k in the bank to do my next deal.
Doug I see your cash flow is King and I see this STUDENT HOUSING PROGRAM will get my family were we want to be. That is 9K a month passive income…….
Found this in Flint, MI. The numbers look great to me.
I’m not really new to investing but have no extra cash to do more right now. I want to get going faster and better
Purchase Price $10,000.00
Renovation Costs $3,500.00
Cost Price $13,500.00
hi my name is patricia i have been looking at realestate for at least 10 years but have not bought anything. I got this site from my father.
my possible deal;
purchase price $259,000
repair 7,500
rent 2,000
cost to value 7.12%
cashcow rule 5.99%
Hey Doug,
Whew! I almost missed this. Thanks for the analyzer it is the BOMB! It saves a lot of work and uncertainty.
OK here’s the deal:
3 bedroom with possible 4th bedroom, one bathroom home for sale . good parts are it’s located right in the middle of a very nice small town within walking distance to a lot of businesses. It is near Waynesburg University and right next door to a middle school.
It has a huge kitchen with brand new hardwood floors, a first floor laundry room , a partial basement with a brand new hot water heater, a new steel front door, and a gas hot water heating system with a lot of new pipes . A side by side fridge, gas stove, dishwasher and security system is part of the deal.
Bad parts are the section of roof over the bathroom has a leak and will need to be patched along with some ceiling tiles in the interior that will need to be replaced, since they got ruined by the leak.
There also needs to be a new boiler for the heating system purchased and installed.
Purchase Price $35,000.00
Est. Renovation Costs $20000
Cost Price $55,000.00
After Repair Value $90,000.00 this is just a guess or should I say wish.
Gross Monthly Rent $2,150.00 = $600 for each Br and $350 for room in attic
DOUG!!!!!!!!! I JUST FOUND ANOTHER GREAT INVESTMENT NEAR THE UCF AREA!
This is an incredible 3/2 1500 sq. ft. home located near Dean off of Colonial. This is an easy rental or flip property located near Valencia and UCF. This house sits on a great lot near the Econ River. It features a huge master bedroom with laminate wood flooring in the other bedrooms. The kitchen only needs some minor work and the house does feature both inside and out AC units. The house was built in 1974 and in great condition with a roof that appears to be in good shape.
Rehab- This house is in great shape and all work is strictly minor cosmetic. The carpet in the master bedroom does need to be replaced. For a rental, the kitchen countertops and cabinets are in great shape. I would consider changing them for a flip. The kitchen does need appliances. There is a window that needs to be replaced in one bedroom. The rest is just paint and minor cleaning. THIS HOUSE IS CURRENTLY TAX ASSESSED FOR $110K!!!!!!!!
HERE ARE THE NUMBERS!!!
>PURCHASE PRICE- $67,000
>RENOVATION COSTS- $5,000 AT MOST
>AFTER REPAIR VALUE-100,000 OR MORE!
>GROSS MONTHLY RENT- $1,200
>COST TO VALUE RATIO-72.00%
>CASH FLOW COW RULE-1.67%
This is by Mott, U of M,Flint, and Kettering U. The cost to value is not good but the cash flow is quite good. This is a really nice looking 3 bed with 2 car garage.
I started investing with a rental way back in 1976 which I used as a downoayment for a much better residence. My last good investment was a commercial building that I sold for a $110,000 profit in just 3 years holding and using it for a temporary business venture. Made more on that than on my JOB.!
Hi Doug. Thank you for the opportunity. This house is located amid 4+ colleges in Flint, Michigan, where efforts are currently being taken to turn the one-time “Buick City” into a college town. More colleges and universites are bound to move into Flint. Currently, there is U of M, Kettering University, Baker College, and Mott Community College, as well as extensions for MSU, CMU, Davenport Univerity and many others.
I have 3 deals pending but here is one I just found:
PURCHASE PRICE- $8,000
RENOVATION COSTS- $20,000
AFTER REPAIR VALUE-$50,000
GROSS MONTHLY RENT- $1,200 guess, could be more duplex 4 beds total
COST TO VALUE RATIO-56.00%
CASH FLOW COW RULE-4.29%
Thanks for all the information you have shared with my husband and me. We are Johnny and Tiffany Robinson. I have been in Real Estate as an agent and Loan Originator since 2002 and my husband husband and I have owned investment properties since 2005. We were displaced after Hurricane Katrina and decided that we would get back into Real Estate on the investor side. We have no deals completed as of yet.
Here’s the deal we found. Please let us know what you think.
7 DUPLEXES IN OUR AREA. 14 TOTALS UNITS. GREAT OPPORTUNITY TO PURCHASE ENTIRE PORTFOLIO AT $200K BELOW APPRAISAL VALUE.
LOCATED NEAR FOOTBALL STADIUM, THEME PARKS, AREA UNIVERSITY, AND BASEBALL STADIUM.
ALL UNITS ARE 2 BEDROOMS, 1 BATH WITH ASSIGNED PARKING. OPPORTUNITY TO INCREASE CURRENT RENTS BY 20%. TENANTS PAY THEIR OWN UTILITIES, LAWN SERVICE AND SOME REPAIRS.
86% OCCUPANCY— CURRENT RENT ROLL IS $6,794 PER MONTH. LEASES ARE GOOD THRU 2010.
LOCATED NEAR SHOPS, SCHOOLS AND ENTERTAINMENT. GREAT RENTAL COMMUNITY!!!
The purchase price is $549,000. There are no repairs to be done. ARV is 749,000. GMR has the ability to be increased to $8152.80. This is the figure that makes the deal work. The cost to value ratio is 73.30%
and the cash cow rule is 1.49%.
This is the first contest I have ever enter. Thanks for the excitement and the chance to put some things into ACTION!!!
This is my first deal!!! Signed the contract this week and need flip or funding soon! I will get more of these.
Six blocks from campus. This beauty just needs the basics to really sparkle. It’s five beds, 2.5 baths, 2542 sf, all-brick home with a full basement. Beautiful back yard with shed and covered patio. More info at NorthColoradoHomeSource.com. Good comps available. Address is 2621 19 Ave, Greeley, CO 80631.
Purchase price $75,500
Rehab costs $19,500
ARV = $129,500
Gross monthly rent $1295+
Cost to value ratio 73.36%
Cash Cow cash flow 1.36%
Hi Doug, thanks for this great tool, really helps out a total newbie like me:-) Done no deals yet but I can assure you I know every “guru” out there and every sales pitch and program…lol…it’s all good though cause I just soak up all the info I can get and block out all the selling Got to wait till I got the money to go all shoppaholic on the webinars…hehe. Anyway I got a deal in Olney Philadelphia that I believe to be a pretty good deal, and being a total newbie and green I can be wrong but I was told to “move forward ASAP” so, here you go:
SF: 1579, yearly tax: $1000, Assumed Mortgage
1 Purchase Price $65000?2 Renovation Costs $15000?Cost Price $80000
3 After Repair Value $140000
4 Gross Monthly Rent $1650
Cost To Value Ratio 57.14%
75% Pass?70% Pass?65% Pass?Below 65% Pass
Cash Flow Cow Rule 2.06%?2% Pass?1.50% Pass?1.25% Pass?1.00% Pass
Good evening Doug.Came across your site through a referral from Mark Walters.Very informative individual.I have been researching various investment systems and niches.I am new to investing as I haven’t done a deal yet because our markets are quite different here in Canada and so is our banking system.I would love to get in on some deals in the U.s. and eventually move there.Come across deals all the time but don’t know where to go from there as I have no network established as yet although starting to join various investor web sites.Came across this deal tonight on a search.Five minutes from a law school and ten from another college in an area starved for off campus housing.Price reduced 50k to $300,000.This place is turnkey and I believe perfect for student housing.The cash cow rating is 5.33 so I think its a winner.Anyway I really enjoyed all the videos thus far and look forward to seeing what else you have in store.Hope to hear from ya soon.John-o
Hi Doug:
My name is Bharat Shah, I am in real estate business since 2006. I live in Tampa,Florida. University of south florida campus is near where I live. This house is near USF. This looks very good deal.
10705 N 11th street, Tampa, Florida. Price: $40000
Bedrrooms:3 Bathrooms:2 Sq.Ft. 1300
Block Construction
Only need carpet and paint.
Repair:$2000
Reant : $1200
After Repair Value: $80000
Your contest inspired me to take action to see if there’s anything “doable” in my area. I am a senior and should be retired, but the sour economy/job loss put me behind the 8-ball. I have been studying real estate investing programs for a decade, and tried a lease option deal that almost got me in hot water (and the “guru” was unavailable for guidance). Student housing makes sense, and is less risky; that’s why I’m excited.
So here’s the best I found:
3BD, 1BA in Kansas City
1) Purchase Price – $25,000
2) Renovation Cost – none (pristine condition)
3) After Repair Value – $60,000 per comps
4) Gross Monthly Rent – $1500 (3 units x $500/mo.) on low end of scale
Cost to Value Ratio: 41.6%
Cash Cow Rule 6%
Hey Doug…Man, I may have missed the bus…still I think I grabbed the bumper as it moves forward. I have alot of catch up. Thanx for your efforts on our behalf. Getting to work now…..argh…three minutes until….!!!!Who WINS ????? WE ALL DO !!!!!
This is fantastic stuff and really exciting! Thanks for sharing so much. And thanks for having a contest that went way beyond the boring “tell me why you want it” style. I had a blast today searching for THE property and I think I found it….in Cleveland
PP: $119,900
RC: $ 1,000 (if you want to put locks on the bedroom doors and find something else to fix
ARV $300,000 — Can you say Motivated Seller!
GMR $ 3300 (conservative)
CVR = 40.30%
CFCR = 2.73%
This place is a huge 5/2, 3500sf directly across the street from CWR and it certainly surpasses your 30% equity rule! There is also a parking space in the bldg’s garage that could be leased for additional income.
BTW, Kim here and I am currently living in the Sunshine State enjoying life and the beach and now searching for these great deals. I am an internet marketing consultant, and so far, have just dabbled in real estate. I am looking forward to your next video… funding this would be great fun!
p.s. I found 4 others that were winners and better move forward ASAP
Thanks for this opportunity/contest. I am also a teacher, have been for a long time. I have my own commercial driving school so no retirement. I know REAL wealth is in real estate! Always has been and always will be regardless of the economy. I’m 63 and need to retire from teaching so I can start making a real living with passive income.
Thanks again,
Nancy
I am so grateful and want to say THANK YOU SO MUCH for sharing your about your Student Housing Program and your 60 Second Property Analyzer!!!!!!! The analyzer has been EXTREMELY helpful!!! THANK YOU!
I am a mother of two and grandmother of one (grandkids are AWESOME) from Colorado. I am secretary who is tired of debt and working for someone else. I have looked at real estate for years, but have just become active in February.
I can see I won’t be winning the contest, but at least I did find some deals, so all is not lost.
Here are the deals I found using Craigslist and the MLS (my rents are very conservative):
Deal #1 is a 5 bedroom 2 bath single residence
Purchase price $132,000 Cost to value ratio: 74.05%
Renovation costs $ 5,000 Cash flow cow rule: 1.64%
Cost price $137,000 Congrats you’ve got a winner here.
After repair value $185,000
Gross monthly rent $ 2,250
Deal #2 is a 5 bedroom 2 bath single residence
Purchase price $ 89,900 Cost to value ratio: 74.13%
Renovation costs $ 25,000 Cash flow cow rule: 1.96%
Cost price $114,900 Congrats you’ve got a winner here.
After repair value $155,000
Gross monthly rent $ 2,250
Deal #3 is a property with five units, 5 bedrooms with two studios
Purchase price $160,000 Cost to value ratio: 71.43%
Renovation costs $ 50,000 Cash flow cow rule: 1.31%
Cost price $210,000 Congrats you’ve got a winner here.
After repair value $294,000
Gross monthly rent $ 2,750
Deal #4 is a 3 bedroom 2 bath single residence
Purchase price $ 88,900 Cost to value ratio: 65.09%
Renovation costs $ 25,000 Cash flow cow rule: 1.32%
Cost price $113,900 Congrats you’ve got a winner here.
After repair value $175,000
Gross monthy rent $ 1,500
Deal #5 is different. It is a property that is super close a college, but is only a one bedroom and will not work, unless…I add two bedrooms. The location is just so great, I thought I’d see what would happen.
Purchase price $ 70,000 Cost to value ratio: 66.67%
Renovation costs $ 30,000 Cash flow cow rule: 1.50%
Cost price $100,000 Congrats you’ve got a winner here.
After repair value $150,000
Gross monthly rent $ 1,500
Thank you so much again, Doug, for all the AWESOME information!!!!!! I CAN’T WAIT FOR YOUR VIDEO ON GUARANTEED FUNDING!!!!!
I wrote about all my deals, but for whatever reason, it didn’t submit. So, I’ll just tell you the important stuff. THANK YOU!!!!!!!!!!!!!!!!!!!!!! Thank you for sharing your student housing program and 60 second property analyzer!!!! They are extremely valuable!!!!!
I am a secretary from Colorado who is tired of debt and working for someone else. I’ve looked at real estate for a long time, but just became active in February.
I have four deals with the result of “Congrats, you’ve got a winner here.” I have also have fifth deal, but it’s a little different. It is only a one bedroom and would not work, unless…I add two bedrooms. Details:
Purchase price $ 70,000
Renovation costs $ 30,000
Cost price $100,000
After repair value $150,000
Gross monthly rent $ 1,500
Cost to value ratio: 66.67%
Cash flow cow rule: 1.50%
Congrats, you’ve got a winner here.
Thank you so much again, Doug. I am so grateful for the information you’ve shared. I CAN’T WAIT FOR YOUR VIDEO ON GUARANTEED FUNDING!!!
Ok, here’s what I have for you at $28,000 in Ohio:
• 3 Bedroom
• 1.5 Bath
• 1785 square feet
• Large lot- 6,229 lot size
• Beautiful, all brick exterior
• Low property taxes
• 2 blocks from Boardman suburbs
• Near Mill Creek Park and less than 5 miles from Youngstown State University
• Appraised at $42,000
• New paint, carpets, newer hot water tank
• LEASED and rents for $400/mo.
• Tenants pay all utilities
RECENT COMPARABLES
Within the past year and two miles of the property.
Average Sales Price: $33,903
AND THIS ONE IN AKRON, WALKING DISTANCE TO AKRON UNIVERSITY FOR $36,000
HERE’S THE DETAILS:
Large home conveniently located near Akron General and Summa hospitals and Akron University.
Very clean, move in condition. NOT bank-owned.
Four bedrooms, LR, DR, two full baths. Two extra rooms in attic could be fixed up for office or play room. Enclosed front porch.
Fenced in back yard provides privacy.
Good rental area for investment income.
Also close to the brand new Mason school.
Both properties came up with CONGRATS YOU GOT A WINNER HERE! Using your tool for calculations. I have a few others to discuss with you, if you are available. Seems like you have a lot to sift through here though.
Hi Doug, You’re info is awsome. My brother graduated from Rutgers -New Brunswick,Nj and always said to me that student housing is big but never looked more into it. I’m a single father trying to keep my head above water. Im tired of struggling, living paycheck to paycheck. I have more debt than income coming in right now. I’m really stressed out with a young son counting on me. Need that change in my life.Please consider my deal.
Its a single family in New Brunswick on Comstock Street
5Bd/1Ba
AP-$129,900
Reps-$10000
Cost Price-$139,000
ARV-$238,000
Gross Month Rent-$2000
I have been investing in real estate for over 10 years but not student housing.
Here is my deal:
This is actually a bank owned (read…make an offer), vacant frat house near Clemson University in South Carolina.
17 units total. 16 units, each housing 2 students and a galley kitchen. 1 unit for manager.
Purchase Price: $825,000.00
Cost to Repair: Not sure but was built in 2004
ARV: Not Sure
Monthly Gross Income: $16,800.00 ($525.00 x 32 students)
Not able to determine cost to value ratio
Cash flow Cow Rule is 2.04% based on no repairs.
Doug, I’m so very excited to be able to do this my deal was found in Cape Girardeau, MO. all from my computer. I’ve never even been there but I know Rush Limbaugh is from there and there is a University there called – Southeast a Missouri State University | One University Plaza | Cape Girardeau, Missouri 63701. I found a foreclosure on Realty Trac but not being member don’t have the exact address but you can pull it up. It has 4 BED 1 BATH and I estimated 15K for rehab or an additonal bath if needed. Never heard back from the Realtor. Comps for 4 BED 2 BATH in this area are at 149,900.
I’m a 46 year old IT guy with 2 teenagers and a 24 year old son and his 20 yo wife all living together. My son recently graduated and is now working on his Masters my Daughter In-Law in working on her Bachelors. My wife from Deleware is working on her Masters. I don’t have a degree but I work hard.
I would like to not have to work so hard and be able to go back to school to study Law and Real Estate but there’s no money left. LOL Anyways we all love each other and I’m happy if they are.
This was easy!
Also I found bigger ones near me at the University of Arkansas and it CASH FLOWS well. So much fun I did another one with my son just for kicks. Check It!
Fayetteville Arkansas – Glendale Apartments – 96 units For Sale at 1150000 (Ran the numbers on this with some guess work.
Purchase Price: 1,150,000
Renovations: 100,000
(Don’t think any are needed based on REVIEWS but I figured I could spend 1000 x 96 units and fix stuff or give T.V.s away or something)
ARV: 2,500,000 based on similar buildings –
For Sale Now
Mid/High-Rise $1,729,000
63,293 SF Bldg
63 Units
Past Sales
Garden Low Rise $3.5M
88 Units
Garden Low Rist $4.5M
138 Units
Gross Rent : $5,280 for 96 Units 1 Bedroom 1 Bath All Utilities at $550 per unit
CTVR: 50%
CFCR: 4.22%
This is so cool and exciting to see what the possibilites could be if I ever had more $ to work with.
If I remember you said you didn’t even own the properties you were getting about 8K a mo. from.
WOW!
Thanks so much for teaching us about this Doug & Alexis
Hey Doug, your contest shows how easy finding properties can be. I worked as a Realtor for 7 years & bought & sold 8 units and a 4-plex lot-Made some good money & haven’t lost yet. I did what you said & searched Craigs List & I found a 5 unit (2 smaller cottages & 1 larger building) property in Colorado Springs, Colorado in a nice older area near Colorado College:
1. Asking 160k
2. Renovation 30k (Guestimate-Has new roof, Plumbing, etc, investor ran out of money
3. ARV 294K (In 1999)-
4. Mo rents 2,750
5. Cost/value 64.63% (I think we could do better
MST = 10:30 PM Sunday, here as I write now …. still good for the contest?
Working A LOT on this over the weekend.
No apparent local “deals” within a 200 mile radius (major western metro area – multiple cities/towns) …
BUT I have an idea about how there COULD be.
Much-needed solutions for viable co-creative expression of individuals here.
A lot of juicy progressive ideas here, but impeded by COL (cost of living)
so high, life force spent on paying bills … unless trust fund baby or …
I really appreciate your innovative teaching approach …. on-the-site videos, and hands-on approach, in assisting others to be “behaviorally competent”.
Also, that you incorporate the synergistic benefits of a group learning forum
(which doesn’t exclude those people who don’t have the ability to compensate you financially right now).
I have been drawn to and studying RE for (too) many years …. I obviously need help to launch.
My long time home biz now defunct.
I experienced a trauma at an early age, which I sense has affected my ability to launch.
(Last sibling deemed by “authorities” to be with her “own kind”. Died of abuse in institution, parents traumatized. So were we.)
I have a deep interest in co-creating truly affordable and human friendly and eco-friendly housing environments, which I would like to pursue ASAP.
However, I need to be able to pay the bills first.
Thanks, Gail Massey
PS DEAL Barebones: in another state (grew up in this town) … less than one block from campus & close to multiple amenities.
$12K purchase price
$20K Rehab cost
$60K repaired value
Rental gross (my) estimate $800 (could be more)
Got the Congrats via your Analyzer.
I have many more details that I can submit to this forum so we can all learn together with a real life example.
PS Do you recommend living close to investment?
PS I have a natural & over time developed sense of non-traditional Feng Shui, personal and larger, which I would like to have the opportunity to develop.
Hi, I’m pretty new to market and such. The free tool cannot work yet as have no Excel, but, here’s what I found that’s very nice:
2/1 house w/large convertible upstairs, 1/1 separate cottage w/att garage, large fenced yard w/organic garden, 13 fruit trees, geared to self-sust, 1mi to college, parks, etc, beautiful wood floors and cabinets, fp, exclt shape and long term investment. We are a bit spendy up here, but this is very nice- I’d like living in!
Purchase price $550, 000
Renovation costs 10,000 (there were no pictures for the inside Tried to call realtor but it was after hours)
ARV $596,000 (this was the county appraisal for 2008)
Gross monthly rent: $4701
Cost to value ratio 96.93%
What should I do now? Don’t spend any more time on this deal
I went through about 10 apartment complexes in Utah and did not find one that said I should move forward, but I tried.
I chose Provo Utah because it is in an emerging market Maybe that is why I had trouble getting them to cash flow….
I am an investor and I am excited about finding out how I can fund apartment deals Thanks, Doug for your help
Detroit Michigan, brick 2 family flat for sale on the eastside of Detroit. 4 bed total. It needs rehab. It does have new windows thruout including glass block in the basement. It needs both furnaces, hot water heaters, both entry and side doors, both kitchens and baths. $5500 in taxes are owed. Rehab needs to be completed in 6 months.
Further research after seller replied, below, shows community college 3.2 miles, law school 10 miles.
Seller replied as to suitability for student housing, and possible rehab cost estimate:
It is about 20 minutes from Wayne State University, 30 minutes from University of Michigan-Dearborn, 30 minutes from University f Detrot mercy and Marygrove Clege. The rehab I would estimate about $12,000.
After Repair Value $89,000.00 (home slightly smaller sold for 120k but average was 89k mostly 3 bed single homes approx 1300-1500…this home is 2040 but is a 2 flat)
Gross Monthly Rent $1,500.00 based on 375 for each of 4 bedrooms.
Hi Doug. I live in Portland, Oregon. I have been investing for about three years now. I have two investment properties and my own home. My investment properties are in Richland, WA and in FL both near colleges. I have hard a hard time flipping properties but I need to learn how to do this so I can continue buying homes too. I need CASH flow right now. I loved your cash flow tool and I will be adding it to my tool belt. I will also change my marketing methods to include college area’s. I found a HUD deal that works in your cash flow tool.
Addendum to above entry: (Over looked including this vital info!)
Deal is located less than a block from Buff State in Buffalo, NY. on residential street.
4 BD 1 BA. 2 story. My guess on the rent was too low. New guess is $400 per room for 4 BD
Also has office/den. Gross monthly rent at $1600.
New guess based on rental comps.
Cost to Value Ratio: 53.33%
Cash Flow Cow Rule: 5%
Already indicated $12000 asking price for quick sale.
$20,000 rehab cost indicated by seller.
$60,000 post rehab value.
After sleeping on the deal my husband and I submitted last night, I had a revelation. There are 14 units included in that deal which are 7 two bedroom duplexes. If we were to charge just $400.00/bedroom, the GMR would be $11,200.00/mo. Although my cost to value ratio remains 73.30%, the cash cow rule is now 2.04%. Please let me know what you think.
Temple Medical Complex and Erie Transportation Complex. This deal is in your back yard. I own it. I purchased for back taxes and a few other liens. $18,000 acquisition. I got $100,000 in rehab cost to get a legally zoned triplex. All units are 2 bedrooms. This deal is perfect to show your students all the details involved in this business. I am willing to let you come in and teach your students and film webinars from the property while it is under construction. I need you to use your resources to get the funding. Again, I already own the property out right. NO MORTGAGES. I don’t care about the contest but I do feel that I can be an asset to your organization. I am a licensed General Contractor with the City of Philadelphia. I have over 20 years of rehab experience and have a very keen sense of this market.
Doug,
I am from Petersburg, Virginia and I have been involved in real estate investing for several years. Your Property Analyzer really helped me to determine if I had a deal or not. My deal is an apartment building that consist of 4 units, each consisting of 2 bedrooms and 1 bathroom.
1. Purchase Price $179,000.00
2. Renovation Cost $0
3. Total Cost Price $179,000
4. After Repair Value $295,000
5.Gross Monthly Rent $3,000
6. CTVR 58.57%
7. CFCR 1.68%
The seller indicated that the rents can be increased because he is not charging his tenants the current market rate for their rent. If the rents are increased, the cost to value ratio will increase.
I saw the contest a little late after being tied up all weekend and I have been looking for deals since late afternoon. I have one that is close, but it will take figuring out why the cap rate is 10 and seeing how I could capitalize by either getting the rents up or costs down. Also, I want to go back to the list of 60 near Univ of Iowa campus landlords I developed a couple years ago and see if I can negotiate better deals with these guys than it looked like I could do pre-economic turndown.
Your program is perfect for my market in Iowa City (Iowa City), and for close by areas of Cedar Rapids (Coe College and Kirkwood College) and Des Moines (Drake University), and I already have the experience and some training to get a quick start. I have been a real estate investor since 2004 with 2 rental properties in Iowa City renting to both student market and others (and you can guess which I prefer!). I also had a real estate license 2006-8 but decided I am much more oriented to investing and would rather have someone else do my real estate marketing.
2 years ago when I sent a letter to 60 Iowa City landlords who are getting to the retirement age I got an immediate response from 18. Of these, most were not sufficiently motivated to sell at wholesale, but now may be a different story, plus there may be others who are more recent owners who are facing difficulty refinancing I can tap. I am also familiar with markets in SW Florida and can mine those areas which have been more impacted by the economy than my home area. I bring both a wealth of experience and a lot of persistence to your program. You provide what has always been the missing ingredient for me in the commercial marketplace– funding.
With that in mind, I may find that I can’t afford to join your program at this point without a scholarship, so I do hope you will consider reopening to more scholarship students. Reversals in the SW Florida market took almost all of our retirement income and we are having to restart from nothing at age 62. I can pay a small monthly fee, but find it hard to budget for major training programs. I am extremely motivated to succeed despite this. I really have no option if I am ever to build a residual income base again sufficient to retire.
Thanks for the opportunity!
I know what it is like to be a student from out of town with no place to live on campus. in response to the contest, I may have found two ideal situations… The city and state is Lansing, Michigan; home to Michigan State and Cooley Law School. Deal 1 is 1.2 miles from Law school. 3 bedroom 1 bath ready to roll. Using control data purchase price 29,500, estimated repair 5,000 total value 34,500. After repair value approx 50,000.00 total rental 1250.00. based on three students ?CASH FLOW COW RULE 3.62% good deal
Deal #2 ideal location 3 bedroom 2 bath home 59,900.00 total rehab. 0 cost to repair. after repair value approx. 80,000 rental value 1500.00 based on three students CASH FLOW COW RULE 2.50% good deal.
Rental value is good; considering One bedroom garden apts. run 650.00 to 850.00 per month for one student.
Not involved in real estate. Law student looking to make back education investment. Oh by the way, I live in Philadelphia, and I attended grad school at LaSalle…nice neighborhood.
You didn’t say WHICH Sunday the contest would end. I just found out about you, your program and the contest this afternoon from Cory Boatwright’s video. Judging from the date of your post, I assume we are talking about 3/21, but I’m just checking because you could be talking about after the webinar which would be 3/28. Please clarify.
Hello Doug, we have over 33 years of FULL time real estate experience. We have several deals on the board would like to discuss. Please call us in person at 818.949.8424. We believe this would be very beneficial for both of our companies. Thank you & regards!!!
I’m a part-time investor with one property earning $300/mth profit (big deal). This student housing idea sounds great, and I would love the opportunity to get that one hour consultation from you. I got the contest information late, but I hope I’m not too late to win.
With that being said I found a newly renovated 3 bedroom house, near a new medical school, hospitals (full of resident students) and a college campus!
Purchase Price: $77,000
Renovation Cost: $0
After Repair Value: $107,317.00
Cost to Value Ratio: 71.75%
Cash Flow Cow Rule: 1.56%
Good Day, How is it going? I must say that i appreciate the unique content of your site alot, can’t help asking my self where you find all of it from. Best regards Ps3Ylodfix
DUPLEX less than 2 miles from a private university, EACH SIDE has 3 BD/1.5 BA totalling 1277 sq ft for HOUSE TOTAL of 2554 sq ft of housing. Across street comp is $229,900
Purchase Price: $37,500
Renovation Cost: $28,000
After repair value: $229,900
Cost to Value Ratio: 28.49%
Cash Flow Cow Rule: 2.14%
My wife and I are leaving our industries as a RN in UR/QM/Compliance and a Board Certified Teaching Chaplain to generate a higher income for retirement and philanthropy. We are looking for both cash and residual incomes. We have been landlords in recent years. We are excited that you have taken turned the arm pit of RE investing and turned it into a money pit! Congratulations on your ingenuity!! You represent our heritage in America so we salute you! We look forward to working with you in the near future.
March 19th, 2010 at 6:23 AM
hello my name is terrance spencer i’m 29 i reside in galesburg, il 3 hours from chicago recently divorced dad father of 4 and i stumbled across this site via a email ad the only real estate experience i have is in property managment
ok my deal failed but it may be able to be worked first off its in chicago, ill i found it via craigslist after watching the videos here purchase price is $249000 it is 14BR/4BA Multi-Family, 4 units
my deal failed 100% but the income total were Property configuration:
Garden 3 bedrooms – 1 bath $800/month (projected)
1st Floor 3 bedrooms – 1 bath $1294/month (actual)
2nd Floor 4 bedrooms – 1 bath $1225/month (projected)
3rd Floor 4 bedrooms – 1 bath $1200/month (projected)
4 parking spaces
doug please contact me so i can show you the deal to see if i did it right please thanks
March 19th, 2010 at 3:43 PM
Wow Doug! Thanks for making this contest available to everyone. I began investing in residential real estate in late 2007 and have been interested in SRO properties which fall into the Student Housing category. Here’s my deal:
1) Purchase Price: $15.000
2) Renovation Costs $45,000
3) After Repair Value $189,000
4)Gross Monthly Rent $ 3,200
Cost To Value Ratio: 31.75%
I’m psyched to see the results next week!
March 19th, 2010 at 4:02 PM
Donna….all I can say is WOW. That’s a heck of a deal. You sure are raising the bar for the contest.
P.S. Let me know if you are looking for someone to wholesale to…lol
-Doug Fath
March 19th, 2010 at 5:49 PM
OK. So I jumped ahead and downloaded the spreadsheet before listening to even the first 30 seconds of the video–I’ll get to that right away. The spreadsheet is awesome! Nice share and I look forward to hearing what you’ll say in this video and the one coming next. Blessings, Cindy in Loveland, CO
March 19th, 2010 at 6:08 PM
Good afternoon Doug so excited to find your blog! I actually found two properties in close proximity to two universities in Tallahassee, FL. My family and I started the wholesale business in April of 2009. We hope to close on these properties soon as these will be our first deals. My brother and I our both college students. I attend classes online at Western Governor’s University studying I. T. I am 28 years old and I no longer want to be in the rat race. My brother attends FAMU in Tallahassee and is very aware of the housing issues on campus. So we thought this would be a good niche to get into
This is what we have:
6/6.5
1.Purchase Price: $110,000
2. Renovation Costs $0
3. After Repair Value $250,000
4.Gross Monthly Rent $ 2,600(on the low end)
5.Cost To Value Ratio: 44%
6.Cash flow Cow rule:2.36%
4/4
1.Purchase Price: $109,000
2. Renovation Costs $1,500
3. After Repair Value $180,000
4.Gross Monthly Rent $ 1,600(on the low end)
5.Cost To Value Ratio: 61.39%
6.Cash flow Cow rule:1.45%
I wish I could keep these great deals but they are available to sell now.
March 19th, 2010 at 6:16 PM
Doug,
Great video and opportunity you are giving us. I immediately downloaded the Profit Analyzer. This is GREAT! I have been forwarding your videos to my 28 year old son who lives in Washington DC. He is currently renting a room in a large house and paying $900/month rent. He is not currently a student (works at Justice Department) but I see that even a young person starting a career could use this niche of real estate investing to set himself up for life. What a great way to get out of the ratrace!
I am trying to build a short sale investing business right now (partnering with an expert SS negotiator) and own one rental property. I see great potential in this niche of real estate investing and plan to enter your contest and then win to partner with you. Thanks for this opportunity.
I will start looking for a deal to submit right now.
Thanks.
March 19th, 2010 at 6:20 PM
Doug: its realy refreshing to listen to some who realy wants to help the littel guy. thanks for the grate info. please keep it comming. thanks Greg L.
March 19th, 2010 at 6:26 PM
Thanks for chance to learn and succeed in real estate investing.
I am getting busy on it today (at the same time I have a 3 year
old that I am caring for). Santa Barbara, CA.
March 19th, 2010 at 6:43 PM
Hey Doug, I just found a property but the Realtor does not have the renovation cost or the other data needed. I’m setting up a meeting for Saturday with a contractor to see if this is a profitable deal. Hopefully I will be able to submit this or find another deal in my area before the deadline.
3 BR SPLIT FLOOR PLAN
REMODELED UPGRADED
SELLER FINANCE $299,838
OR MAKE A REASONABLE OFFER!
CREDIT PROBLEMS-WE WILL HELP YOU!
THIS HOME ELIGIBLE FOR SELLER FINANCING-NO QUALIFYING
GREAT TERMS **5-15% DOWN** OWNER/BROKER
March 19th, 2010 at 6:59 PM
Thanks for the analyzer, Doug. However, I have a question about the financing. Initially you offered to show us how to get funding. I don’t know whether I missed it somehow, but I only see where you are offering to assist the contest winner in finding financing. How about the rest of us folks who meet the criteria of broke? Where do we get the money?
March 19th, 2010 at 7:37 PM
Hey everyone. Waiting on information for other deals, but this is what I have found so far.
One block from a smaller college.
Price: 46,000
Renos: 40,700 (includes detailed est)
APR: 135, 000 (took the low value from the comps)
CTVR = 64.22%
CFCR = 1.38%
Based on 3 x $400 rents which I am getting confirmation on.
I have been dabbling in real estate for about 10 years. Mostly single family apartments – won some, lost some. Over all I think I broke even. But I am learning as I go and keep pulling that trigger.
I have always been interested in buying multi family units – I even convinced a friend to do it and he thanks me every time we get together. I like the student housing angle as you are not as affected by what is happening in the town. And if you have a decent place, you should have tenants for at least 4 years. I like that!
Randy
March 19th, 2010 at 7:44 PM
Great Condo Available – Next to Relaxing Pool
Ground floor, END UNIT facing pool
2BR/2BA Condo
offered at $55,000
Year Built 1983
Sq Footage 1,088
Bedrooms 2
Bathrooms 2 full, 0 partial
Floors 1
Parking Unspecified
Lot Size Unspecified
HOA/Maint $0 per month
Agent has great property Management team to qualify renters..
March 19th, 2010 at 7:57 PM
Hi Doug, I am thrilled about your program and cannot wait to learn more. My wife, my two college daughters and I have been doing some real estate investing back in 2005 and 2006 (mainly rehabbing) but we got out of real estate after that. Now I am back and want to learn where the best market would be to get started again.
I found the following property in Gainesville, Florida near the University of Florida:
3/1 in Porters Oaks, on 611 SW 3rd St. in Gainesville. The property is move in ready with all appliances in place. To be on the safe side I just put a $2000 for repairs. Here are my numbers for my deal:
Purchase Price $ 47,500
Renovation Costs $ 2,000
ARV $ 69,000
Gross monthly rent $ 1,200
Cost to Value 71,74%
Cash Flow Cow Rule 2,42%
According to your tool this is a winner!
I look forward to hear back from you. Thanks so much. Reto B.
March 19th, 2010 at 8:21 PM
I am just starting my real estate business and came across these videos. I am excited to see if this will work for me, it would be encouraging a little to see it work for someone else.
Here is what I found.
Close to Rutgers University & NJIT in Newark, NJ.
Purchase Price = 94900
Renovation Costs = 12000
After Repair Value = 328000
Gross Monthly Rents = 3600
Cost to Value = 32.59%
Cash Flow Cow = 3.37%
Thanks,
Jeff
March 19th, 2010 at 8:32 PM
Hi, Doug!
My name is Martha and I’m a seasoned real estate “subject-to” person. I currently doing short-sales and will attend a commercial bootcamp, soon. Been in the biz for five years (on and off), and I’m also a Master Esthetician (i do waxing, manicures, body treatments, etc…). I’m getting back in the game and want to sharpen my saw. Here are the deals I found when I put typed, “college rehab” on CL, since I just moved to the area and don’t know the college names by name. I researched all of Florida state on CL with the same keywords. Tomorrow, I’ll try another city with the same criteria and provide you with my findings.
Purchase Price $35,000.00
Renovation Cost $20,000.00
Cost Price $55,000.00
After Repair Value $85,000.00
Gross Monthly Rent $2,000.00
Cost To Value Ratio 64.71%
Cash Flow Cow Rule 3.64%
Per the seller: the local black college is interested in buying this property to convert to their own student housing. The area is gentrifying. The house is a 4BR, but could easily be a 5BR…with 2 large bedrooms and 2 smaller bedrooms. The owner just got a pace maker and can’t deal with another rehab project…he also sounded ancient (geriatric). Not listed on the MLS, but told me that zillow has it value listed at $85K….though, the owner from whom he purchased it from did get an offer for $99K in writing three years ago….I explained that I couldn’t use that number as a current comp. lol. He agreed. Owner also mentioned that I can get government financing to buy this house thru HUD.
http://jacksonville.craigslist.org/reo/1646653066.html
_______________________________________________________-
Purchase Price $24,900.00
Renovation Costs $20,000.00
Cost Price $44,900.00
After Repair Value $85,000.00
Gross Monthly Rent $600.00
Cost To Value Ratio 52.82%
Cash Flow Cow Rule 1.34%
852 NEUSE AVE, ORLANDO, FL 32804
-2 Bedrooms, 1 Bathroom
-667 Living Square Footage
-College Park Location
-Large Yard
-Mature Landscaping
-No HOA
-Taxes: $1,709 (09)
YOUR PRICE…ONLY $24.9K!
-Cash or hard money only
-Buyer pays all closing costs
___________________________________________________
Purchase Price $49,900.00
Renovation Costs $10,000.00
Cost Price $59,900.00
After Repair Value $100,000.00
Gross Monthly Rent $800.00
Cost To Value Ratio 59.90%
Cash Flow Cow Rule 1.14%
http://orlando.craigslist.org/reo/1606389599.html
This 3/1, 1243 sq ft home has a large living area and an open kitchen. Property is on an oversized lot..Minutes from the local college as well as shopping & dining.
Per the ad on CL: Rehab that’s needed includes flooring, paint, drywall repairs, and general updating.
407-429-7865
1518 MIAMI RD, ORLANDO, FL 32825
-3 Bedrooms, 1 Bathroom
-1243 Living Square Footage
-Block Construction
-Central Heat/Air
-Newer Air Handler
-Breakfast Bar
-Oversized Yard
-No HOA
-Taxes: $2259 (09)
___________________________________________
Purchase Price $61,000.00
Renovation Costs $10,000.00
Cost Price $71,000.00
After Repair Value $100,000.00
Gross Monthly Rent $900.00
Cost To Value Ratio 71.00%
Cash Flow Cow Rule 1.27%
CONTACT: Mitch Thomas
-Call 407-844-5203
-Or Email: webadmin@ibuyhousesfl.com
http://orlando.craigslist.org/reb/1620797554.html
REHAB DETAILS:
-Needs:flooring in 2 bedrooms, paint and minor cosmetics throughout.
-Has: nice tile throughout common areas, kitchen cabinets that are in good shape with a stove and dishwasher that are still in place
SUMMARY:
-3 Bedrooms
-2 Bath
- 1027 SQ FT (LIVING)
_____________________________________________________
Purchase Price $59,900.00
Renovation Costs $10,000.00
Cost Price $69,900.00
After Repair Value $140,000.00
Gross Monthly Rent $1,600.00
Cost To Value Ratio 49.93%
Cash Flow Cow Rule 2.00%
$59900 / 4br – Great 2 plex for sale (Miami FL)
Date: 2010-03-17, 10:28AM EDT
Reply to: dario@bankonit.com [Errors when replying to ads?]
Exelent monthly CASH FLOW opportunity. Close to Miami dade college north campus.
Each units have 2/1, parking space in front of the building, nice back yard, lot zise 7,000 Sqft, living area 1276 Sqft,year built 1957, reatil market value after repairs $140K. each unit can be rent out for about $700-800 a month.
The property needs general rehab like paint, floors, update baths and kitchen.
CASH BUYERS ONLY.
Dont miss this opportunity!!!
http://miami.craigslist.org/mdc/reo/1648086748.html
________________________________________________________________________
Purchase Price $34,500.00
Renovation Costs $10,000.00
Cost Price $44,500.00
After Repair Value $70,000.00
Gross Monthly Rent $900.00
Cost To Value Ratio 63.57%
Cash Flow Cow Rule 2.61%
http://treasure.craigslist.org/reo/1624943767.html
March 19th, 2010 at 8:48 PM
Hi Doug,
I have been studying real estate investing for a couple of years after reading Rich Dad Poor Dad. I purchased a rental property in Phoenix in spring 2009 with tenant in place with $400 cash flow and just $3500 out of pocket and $2250 back at closing. Sweet deal right? Well the tenants moved out in October 2009 and I had to do repairs and lower the rent to get a new tenant. The property values and rents have plummeted in Phoenix. It’s going to be a while before values “rise from the ashes” in Phoenix, but as long as I can keep a tenant, I can hold on. At the moment I have partnered with 2 Short Sale Negotiators of luxury homes who will fund my deals. I will be the buyer in the A-B B-C back to back closings to end buyer. Great profit potential. Still learning and working with realtors to get deals.
Here’s my deals:
Duplex Raleigh NC near NC State with 4 bdrm/2.5 bath each unit. Total 8 bdrms
1.Purchase Price: $216,900
2. Renovation Costs $8,000 (maybe $0 move in ready)
3. After Repair Value $300,000 (seller had another property with less bdrms for this price)
4.Gross Monthly Rent $ 3,200($400/each bdrm)
5.Cost To Value Ratio: 75%
6.Cash flow Cow Rule:1.42%
Congrats you’ve got a winner here. Better move forward ASAP
3bdrm/2.5bath townhouse Greenville NC near Pitt CC/Medical School and 3 miles from East Carolina U
1.Purchase Price: $67,000
2. Renovation Costs $0 (owner cleaned carpets and new paint)
3. After Repair Value $125,000 (Est. compared to listings in area)
4.Gross Monthly Rent $ 1,000($400 for master bdrm/bath and $300 each for other 2 bdrms)
5.Cost to Value Ratio: 54%
6.Cash flow Cow rule:1.49%
Congrats you’ve got a winner here. Better move forward ASAP
This was fun!! This a great tool to analyze the deal. I can add this to my toolbox for analyzing profit potential of real estate investing. I’m excited about learning more. I just retired from a state JOB (Just Over Broke) of 35+ years with a pension and a small IRA. I’m just 55 years old and need to continue working/investing (this is too fun to be work).
Thanks for the opportunity to look into another niche of profitable real estate investing. I hope I WIN!!!
March 19th, 2010 at 10:18 PM
Hey Doug I’ve really enjoyed your videos thus far and I really like the idea of this contest. I’m 24 and have lived in a college town Rexburg, ID for over five years now. I’ve wanted to get into real estate for a number of years, I have a cousin that manages property here and has done well. I’ve always seen the potential in real estate. But I have yet to invest because I’ve been trying to learn what I can and mostly I’ve just been unsure how to make it happen and how to fund deals considering I’ve mostly been working seasonal jobs and am actually looking for work as we speak. Anyway here’s a deal that I’ve been looking at for the last week its in a college town Louisville KY, but I don’t know that its’ near enough to one of the colleges to be considered student housing but it still looks pretty good to me. Its 24 one bed units.
1.Purchase Price: $150,000
2. Renovation Costs: $125,000
3.After Repair Value $420,000
4.Gross Monthly Rent $ 7,200 low end up to maybe 8,400
5.Cost to Value Ratio: 65.48%
6.Cash flow Cow rule:2.62% low to 3.05% high
Look forward to seeing everyone’s deals and watching the contest. Thanks Doug
Jared
March 19th, 2010 at 10:36 PM
Doug,
I have beeni investing for the last 30 years and have owned more than 50 residential and commercial properties in Wisconsin. I now live near Tampa Fl. and like the idea of student housing.
I am looking at a property close to USF in Tampa and will bring $400 per month x 3 students =$1,200 per month.
The asking price is $55,000 but it is a short sale and I think I can get it for $40,000. It needs paint and flooring at a cost of $5,000. The value would be around $60,000 after repairs.
Purchase Price $40,000
Renovation $ 5,000
After repair value $60,000
Monthly rent $ 1,200
Cost to Value 75%
Cash Flow 2.67%
March 19th, 2010 at 11:00 PM
OK, this contest has awoken the giant within. it’s Martha Chiriboga, again! I decided to keep on bird-doggin for more deals on CL, but I found nothing is AL, AK, AZ, MA, UT, CA (i kept the same search words, “college rehab”).
However, in TN, I found this ad. It sounds like a good deal, but when I went to zillow.com, it didn’t give me any info.
http://memphis.craigslist.org/reo/1648281561.html (this ad sounds even more tempting because there is “financing” in place”).
I’m not so sure it’s a good deal, since it’s been advised on CL since 17 Feb., 2010 (BUT I COULD BE WRONG, since I’m a newbie).
Sooo, I guestimated the rents and guestimated the ARV. The only thing that triggers my suspicion on this one is that in the beginning of the ad, it says “No repairs needed”, but then the advertiser says, “we can lend purchase + repairs”. Didn’t he proofread his copy?
Purchase Price $27,000.00
Renovation Costs $-
Cost Price $27,000.00
After Repair Value $64,000.00
Gross Monthly Rent $400.00
Cost To Value Ratio 42.19%
Cash Flow Cow Rule 1.48%
March 20th, 2010 at 12:06 AM
Wow! How fun…I love contests! Here’s what I found:
A fantastic bargain (not even on the market yet) located near downtown hi-rise condos and under 1 mile from 7 colleges, the famous San Diego Zoo, Botanical Park, and the San Diego Regional Medical Center. Talk about location! The property is old (built 1907), consists of two buildings (duplex), 5 bedrooms, 4 baths. Average room rental rate in this area of town is astronomical! So, ding ding ding, I think we have a winner:
Purchase Price: $449,900
Renovation Costs: $350,000
Cost Price: $799,900
After Repair Value: $1,500,000 – $2,000,000 (figure based on recent solds on Zillow, could be more based on square footage).
Gross Monthly Rent: $5000 – $6000 (nearby rents are $1200 for 1 bdr apts)
Cost to Value Ratio: 53.33% (based on low-end ARV)
Cash Flow Cow Rule: .63%
My name is Kathy, I recently relocated to San Diego. I’m already tired of working 9-5 for peanuts. Just obtained my real estate broker’s license, but not currently practicing. I’ve taken many ‘investing’ courses over the past 5 years, but when it came time to ‘do the deals’, my coaches were not available to do deals with me. Fear of the unknown has slowed me to this point, I suppose. I did purchase one condo and flipped it – breaking even, just before the bust. I was lucky. But I’d hoped for so much more! I’m definitely looking to be a birddog and split deals.
March 20th, 2010 at 1:01 AM
Wow. After searching in areas/schools near me, I’m surprised to find that they don’t meet the criteria. I used Craigslist and also have access to the MLS. Although some properties meet the criteria in Greeley, I know that that area is extremely competitive for college rentals and that several areas would not be considered safe by the parents of college students. Is it ok to range out from my local area to look for a property to submit for the contest? I hope so, because the rents are low in comparison with the costs for properties in Boulder, Fort Collins, and Greeley. We did recently make a sweet deal on a 4-plex bought at auction (and your property analysis software proves that it was indeed really sweet), but it’s not really near enough to any university around here to qualify as a college rental. I was actually surprised that things in Fort Collins near CSU didn’t qualify based on your software, but also really glad to find that out. Perhaps searching out free and clear or probate homes near CSU would work, though.
March 20th, 2010 at 1:10 AM
Found a home 10 blocks from gonzaga university, 4bd, 1bath. fully refurbished, asking 100k , college is getting at least 450.00 a unit, so say 1800 a month , mortgage was estimated at 550.00……… tried to download your analyzer but was unsuccessful will try again……..
March 20th, 2010 at 1:28 AM
Doug,
Please help me fund this deal.
http://raleigh.craigslist.org/reo/1626901053.html
March 20th, 2010 at 1:38 AM
Hi Doug,
I this is a real deal I have a great property (I emailed it to you). I am desperately seeking my first commercial/multi unit deal….more details about me in my email. The property I sent is in an area with a rapidly growing college, a huge military base and is priced at aprox. 60% LTV (ARV). I filled out your form and the numbers look great,so, LET’S DO IT!!
Thanks for the free info, it’s sorely needed in the marketplace.
March 20th, 2010 at 2:07 AM
OK. I’m a skeptic. I put in a craigslist search for Hofstra on LI,NY. Zero results. Expected. Then I changed the search to say student housing. I got a seller near a college called Herckimer who wants to retire. He states the front of the property is a legal 4 family, with a 3BR house in back of that, for a total of 12 rooms to rent with an average rent-roll of 4000-4400 per student. He wants 85000 for the whole thing,cash. He says it appraises at 95000 and says nothing about repairs but would pass appraisal. Your analyzer doesn’t take into account the second 3BR house.Claims the annual rents are 48-52K per year and that the school athletic dept. is interested in properties like those to keep teammates together.
http://longisland.craigslist.org/reo/1605924088.html
So do you do properties at a distance, or local?
March 20th, 2010 at 2:14 AM
Another deal in Raleigh NC:
Single Family home built in 1970 with sq feet of 2567 on a .30 acre of land on Hasty Street. The total assesed value is around 115,000.00 selling property for only 45,000.00 this is a excellent deal. The area is very good and close to NC State University. Selling this property for this price because do not have the extra money to fix it up or do anything with it, taxes or dued witch are only 814.00. If interested please call 919-847-8869 to veiw the property.
Purchase Price: $45,000
Renovation Costs: $30,000 (Very conservative)
Cost Price: $75,000
After Repair Value: $115,000 (Tax value)
Gross Monthly Rent:$1,200 ($400 each bdrm)
Cost to Value Ratio: 65.22%
Cash Flow Cow Rule:1.60%
Congrats, you’ve got a winner here.
Better move forward ASAP
March 20th, 2010 at 2:57 AM
Hello Doug,
Thank you for this opportunity. I truly appreciate all of the helpful information that you are sharing with us. I have been involved in real-estate for 4 years now and like you I began at an early age. I am presently looking for ways to improve my business and to increase my own personal income. I strongly feel that your system can do just that. Once again thank you for this tremendous opportunity and I am looking for to one day speaking with you.
Sincerely,
-Clayton-
This is a property that I found in Philadelphia. It is minutes away from Temple University. Huge 3-story CORNER PROPERTY located in the Temple university area!!! 8 bed, 2.5 bath with huge adjoining lot which could possibly be used for a 6-car private parking area. Spacious covered porch, very large basement, cozy backyard. This property is for sale $64,999. Adjoining LOT is also available for sale for $10K. Purchase either property separately, or as a package deal. The PACKAGE price for BOTH properties is $74K. I did my analysis just on the home alone.
1. Purchase Price:$64,999 (Just off the Home Alone)
2. Renovation:$0
3. Houses are selling for $135k-160k
4. Gross Monthly Rent 8 rooms x $500 a month=$4,000 a month in rental income.
($500 A Month Being Conservative Here)
5. Cost To Value Ratio: 43.39%
6. Cash Flow Cow Rule: 5.63%
Um I think this one may be a keeper. You think?
March 20th, 2010 at 3:42 AM
Hi Doug,
Nice spreadsheet! I have been investing in real estate for about 7 years. have been hit hard by the recent crisis as I had overleveraged some deals. Looking for new ways.
Here is a deal I found on craigslist:
Exelent monthly CASH FLOW opportunity. Close to Miami dade college north campus. $59,900
Each units have 2/1, parking space in front of the building, nice back yard, lot zise 7,000 Sqft, living area 1276 Sqft,year built 1957, reatil market value after repairs $140K. each unit can be rent out for about $700-800 a month.
The property needs general rehab like paint, floors, update baths and kitchen.
need about $12K in repairs.
here’s the 60 seconds analysis:
1 Purchase Price $59,900.00
2 Renovation Costs $12,000.00
Cost Price $71,900.00
3 After Repair Value $140,000.00
4 Gross Monthly Rent $1,500.00
Cost To Value Ratio 51.36%
75% Pass
70% Pass What should I do next?
65% Pass Congrats, you’ve got a winner here. Better move forward ASAP
Below 65% Pass
Cash Flow Cow Rule 2.09%
2% Pass
1.50% Pass
1.25% Pass
1.00% Pass
I’m sending an offer tonite!
March 20th, 2010 at 3:57 AM
Doug,
I have to commend you on finding a “new” niche in these times – you are truly making others rethink! I was a real estate agent (my only income) for several years until I became disabled and was unable to continue selling. I was hoping that this would get me back into real estate and the business I love and put my brain back to work where my legs have failed me.
The deal I found is actually within walking distance of TWO colleges(!!!) and a major pharmacy school. It is a duplex, and the landlord is currently renting one side out to a college student for $750, but the beauty is that both sides are a total of 6 bedrooms. Using your evaluator, Doug, here’s what I get, based on my previous real estate experience:
1 Purchase Price $49,900.00
2 Renovation Costs $10,000.00
Cost Price $59,900.00
3 After Repair Value $98,000.00
4 Gross Monthly Rent $2,100.00
Cost To Value Ratio 61.12%
75% Pass
70% Pass
65% Pass
Below 65% Pass
Cash Flow Cow Rule 3.51%
2% Pass
1.50% Pass
1.25% Pass
1.00% Pass
Doug, as you can see, they all read “PASS” and this feels like a great property! I hope you find it worthy and get me back on my feet again, so to speak.
March 20th, 2010 at 3:58 AM
Doug,
My name is Scott Hixson and I have been in real estate for a couple years as a commercial broker. I saw some smoking deals go by but didn’t have the guts to look for funding to buy them, that was then…..
With your help, I will find some unreal deals in all areas and make us both some money! I was searching craigslist and could find nothing in Chivago that made any sense at all so then I went to Zillow and searched for foreclosed houses around the major colleges…bingo! I found a 4 bedroom house in need of rehab which should need about $30,000 or a bit less to make it ready. It is listed at $99,000 but I know I can get it for less (being a broker and all). The ARV is about $280,000 and rents for a 4 BR in the area are $2800/mo. Giving a cost/value of 51.60% and a cash flow cow rule of 2.17% Not bad I would say…
Thanks for being an awesome mentor! Scott
March 20th, 2010 at 5:52 AM
Doug,
I didn’t know if two entries was kosher or not (see personal info above), but thought this deal was very interesting because of size and price. 8 (Yes, eight!) bedroom, 3 full bath, 3 floors, 2,833 sq. ft. and walking distance to both colleges still. third floor is fully rehabbed and rented. 1st and 2nd floor still need to be done. This one looks like the owner got overextended and just wants out. He doesn’t see the potential of renting to students!
1 Purchase Price $9,900.00
2 Renovation Costs $40,000.00
Cost Price $49,900.00
3 After Repair Value $88,000.00
4 Gross Monthly Rent $2,600.00
Cost To Value Ratio 56.70%
75% Pass
70% Pass
65% Pass
Below 65% Pass
Cash Flow Cow Rule 5.21%
2% Pass
1.50% Pass
1.25% Pass
1.00% Pass
March 20th, 2010 at 6:57 AM
Purchase Price: $39,900
Renovations: $15,000
ARV: $80,000
GMR: $ 900
Cost to value ratio: 68.63%
Cash Flow Cow Rule: 1.64%
My only real estate investment was an auction purchase for $7000.00 in the Kensington section of Phila. It was a full rehab for $30k. ARV between $55-60K. Currently getting $650 rent. I’m glad to see that entering the info into the Analyzer it was still a good deal. I’ve always believed that student housing was a good way to go but was concerned about the tenant issues. Now my issue is getting the financing. I’m finding that banks are a little reluctant to finance an investment property. Look foward to your next video.
March 20th, 2010 at 7:13 AM
Doug,
I’m Javi a new RE investor. I’ve been at this for awhile through many guru pitches. This is a high cash flow model that has major potential at just the right time. Kids are staying in school for advanced degrees since there are no jobs out there right now. Take us through the rest since get financing is a major hurdle for all of us.
2 Units … Each 3 Bed / 1.5 Bath. Building needs about $20k in rehab to be rented. Each side will rent for about $600/month. After Repaired Value is about 75k. Seller has property inspection reports and four contractor rehab bids. Property is less than a mile from a University.
Purchase Price $17,900.00
Renovation Costs $30,000.00
Cost Price $47,900.00
After Repair Value $75,000.00
Gross Monthly Rent $1,200.00
Cost To Value Ratio 63.87%
75% Pass
70% Pass
65% Pass
Below 65% Pass
Cash Flow Cow Rule 2.51%
2% Pass
1.50% Pass
1.25% Pass
1.00% Pass
March 20th, 2010 at 10:24 AM
I got started in student housing in Fall 2005. Grew too fast. Lost some money. Sold some buildings. I’m holding on to my properties in Oswego NY but need to liquidate two properties in Cortland NY – just a block from SUNY. Mortgages due: $120k first, $30k second. Bank will accept short sale – make an offer! According to your property analyzer, offer should be around $105,000.
Purchase Price $105,000.00
Renovation Costs $5,000.00
Cost Price $110,000.00
After Repair Value $150,000.00
Gross Monthly Rent $2,500.00
Cost To Value Ratio 73.33%
Cash Flow Cow Rule 2.27%
I’d love to keep these – if I could figure out the financing, and use your “magic lease”, these should be cash cows.
By the way – our gross monthly rent includes utilities. In upstate NY, this is definitely an issue! How do you factor that into your formula?
Thanks for looking!
Pat
516-817-3436
March 20th, 2010 at 10:47 AM
Doug,
I’m a 26 year old who grew up in Alabama and joined the U.S. Marines Corps right out of High School. While I was in the Military, I’ve always committed myself into something that would help me become more independent and financially free. Unfortunately, I got caught up in the different home-based businesses that went nowhere, but my funds did. About 3 years ago, the real estate bug hit me and loved the idea of becoming a real estate investor. I went off on my own and bought my first condo. Started looking good and bought a second condo for investment. Long story short, I now have both on short sale. I was inexperienced then, who has become a little wiser. I take it as a blessing in disguise. Hopefully, with you, this could be my comeback and possibly a long term partnership/friendship.
Orlando, FL
1. Purchase Price: $37,500
2. Renovation Cost: $7,000 possibly less
3. After Repair Value: $85,000 possibly more
4. Gross Monthly Rent: $1,200
5. Cost to Value Ratio: 52.35% all pass
6. Cash Flow Cow Rule: 2.70% all pass
V/R
Michael Lee
March 20th, 2010 at 1:35 PM
Doug,
I am in the same market as you. I am on my second project. We buy, fix and sell distressed homes in the Philadelphia area.
This is a college rich area. I see these buildings around and drive by because I did not realize the great potential in these areas. I am very excited to learn how to take these buildings and make them profitable.
March 20th, 2010 at 2:01 PM
My name is Tim Caldwell and I am a 42 year-old husband and father of 4 living in Cincinnati, Ohio. I own a small business and until the recent downturn in the economy my business has afforded my family a good living and allowed my wife to be a stay at home mom. My story is very similar to your father’s in that I feel I did most everything right, I actively manage my business six days a week, I take a modest salary, I re-invest the profits to continually improve it, I have good loyal employees, but the economy in this part of the midwest is taking its toll. I am looking for an opportunity that my wife and I can work together with her taking the lead. HER REMAINING A STAY AT HOME MOM IS CRITICAL!!!!
3br – 2 Houses Plus 2 Car Lot UC Area (Clifton UC Area)
1. Purchase Price – $37,000 / OBO (Guessing Motivated Seller)
2. Renovation Cost – $5,000 (Ad states, “no repair needed”, but want to be conservative)
3. After Repair Value – $90,000
5. Gross Monthly Rent – $1,530 (also parking revenue possible)
6. Cost to Value Ratio – 46.67%
7. Cash Flow Cow Rule – 3.57%
March 20th, 2010 at 5:07 PM
From Houston TX, my name is Valentin Jaquez III. I am 23 years old, husband and a father to my 4yr old son. I work in the hotel industry which takes most my time away from my family. So, if I have an oppurtunity to change that I will. That’s why I’m excited to have chance to see if this works. I’m highly motivated and also ready for that change of life. It’s rough in my financial situation, which is why I cannot wait til Monday (your funding video).
Located SW Houston area – 1,700 sqft, 3 bedroom, 2 1/2 bath, town home
Purchase Price: 35,000
Renovation Price 12,000
Cost price: 47,000
ARV: 67,500
GMR: 1,200
Cost to Value Ratio: 69.63%
Cash Flow Cow Rule: 2.55%
Thank you for the oppurtuniy
March 20th, 2010 at 5:39 PM
Doug,
Here’s another potential deal, but they are asking too much. I used the Profit Analyzer to back solve the offer price with a guesstimate of repair costs based on ad. It is near UNC Chapel Hill.Great location. Priced $4k below appraised value. Very motivated seller = all reasonable offers will be considered. Centrally located in Hamlin Park (across from Eastgate Shopping Centre, Trader Joe’s etc) condo is approx. 2 miles from UNC & even closer to I-40. Built in the 1970s, there are 2 beds, 1 bath & 1 laundry room. Beds have huge walk-in closets. 2 patios. Large pantry in eat-in kitchen. Wonderful neighbors. On F bus line. Complex includes pool. Condo is older, so some work is needed (flooring, minor repairs, etc). GREAT opportunity for investors, university/hospital employees, students, grad students, etc. Pet-friendly. Plenty of parking.
March 20th, 2010 at 5:47 PM
Opps I accidently pressed the submit button before I was finished.
Here’s the deal:
Purchase Price: $48,000 (asking $78,000)
Renovation Costs: $12,000 (guesstimate based on ad)
After Repair Value: $82,000 (appraised at $4,000 above asking priced)
Gross Monthly Rent:$800 ($400 each bdrm)
Cost to Value Ratio: 73.17%
Cash Flow Cow Rule:1.33%
Congrats, you’ve got a winner here.
Better move forward ASAP
March 20th, 2010 at 6:38 PM
Hey Doug,
My name is Roger James i live in canada im just getting started in investing in real estate and your videos have been really helpful. i LOVE this business and the end goal for me is to not have to work, i love it so much that i probably will always be doing this but i like the freedom of not having to. thanks for the videos and the property analyzer tool its been great. so anyways here is the deal that i found.
purchase price:$45 000
renovation cost: $3000
after reapair value: $98000
gross monthly rent: 1800
cost to value ratio:48.98%
cashflow cow rule:3.75%
i found another one that is currently a bar but would be worth more as student housing
purchas price:$98000
renovation cost:$100000
after repair value:$400000
gross monthly rent:5250
cost to value ratio:49.50%
cashflow cow rule:2.65%
March 20th, 2010 at 7:07 PM
Doug,
Here is a deal I found that is minutes from a small college in Alabama. You can see the college standing on the front screened porch.
Here’s the deal:
2 bed/2 bath on 1300 sq. ft.
Purchase Price: $27000
Renovation Costs: $3500 ( Agent said only needs TLC, I understand “a good paint job”.)
After Repair Value: $60000 (according to the agent)
Gross Monthly Rent: $1500 (on the high end)
Cost To Value Ratio: 50.83%
Cash Flow Cow Rule: 4.92%
Congrats, you’ve got a winner here.
Better move forward ASAP
March 20th, 2010 at 7:53 PM
Dear Doug:
What if I found a student housing property that needs no repairs? Fully Furnished, Provides everything a college student would need excellent location. walking distance to college? Asking price is 102,000.00.
This really needs no repairs. This is ready to move in?
Do it need to be a fixer upper?
I appreciate your response.
CGathers
March 20th, 2010 at 8:02 PM
Found a great deal in Omaha near UNO & Creighton.
Purchase Price: $22K
Repairs: $10K
ARV: $60K
Gross Rent: $850
Cost to Value Ratio: 53.33%
Cash Flow Cow Rule: 2.66%
March 20th, 2010 at 8:23 PM
Doug,
Here’s a link I found on craigslist that is positive for student houses.
http://www.cyberhomes.com/content/news/08-09-18/college_town_real_estate_when_buying_beats_renting.aspx
March 20th, 2010 at 9:14 PM
Hello everyone my name is Steven Galiszewski. I am a 21 yr student with a very serious entrepreneur mindset. I love the idea of creating wealth out of thin air and know that it is possible for anyone who is persistent to do this. I found a perfect investment only 9 minutes away from the 3′rd largest university in the United States. This is a fixer upper property and has some real potential. This house has 3 bedrooms and is 1243 square feet. Other houses in the same neighborhood have recently sold for $140,000/ $145,000/120,000. I have many friends that live close to this house. So here are the numbers:
1. PURCHASE PRICE-$49900
2.RENOVATION COSTS- $20000/AT MOST
3.AFTER REPAIR VALUE- $110,000
4. GROSS MONTHLY RENT- $900-$950
5.COST TO VALUE RATIO- 69.90%
6.CASH FLOW COW RULE- 1.29%
PS. I WOULD JUST LIKE TO THANK YOU DOUG FOR THE TIME YOU TAKE TO GET OTHERS ON THE CORRECT PATH TO SUCCESS!
March 20th, 2010 at 9:16 PM
Here’s another deal. This is fun!
This 3 bedroom, 2.5 bath townhouse is located in the Oaks of Guilford subdivision.
It is a forclosure, so it is sold AS IS, and is a CASH ONLY at closing purchase.
Fireplace in the living room, and a privacy fence in the back.
New microwave, range and dishwasher!
College Road at Friendly near Guilford College Winston Salem NC
Purchase Price: $74,900
Renovation Costs: $3,000(clean carpet and paint)
After Repair Value: $105,000(sold price 5/15/09)
Gross Monthly Rent:$1,200
Cost to Value Ratio: 74.19%
Cash Flow Cow Rule:1.54%
Congrats, you’ve got a winner here.
Better move forward ASAP
March 20th, 2010 at 9:18 PM
Hi Doug. I’m an auditor full time, but I own my own RE investing business. Although I have been around real estate all my life, I still consider myself a new investor. My grandfather was a contractor, and I would go on jobs with him growing up. I started investing (wholesale) in April 2009. I have not had much success. I am a person that is persistent and hardworking, but I have only done one deal. I get tons of leads through my website, but most of the time, the sellers want retail and won’t budge off their price. I want to try something else that is guaranteed to bring me profits. I too have lost a lot of money since April 2009 on coaching courses that didn’t work. I know there is always a need for student housing. I live in AL, home of the 2010 SEC Champions, Alabama. They have several campuses all over the state, including the University of Alabama Birmingham.
Here is my deal. I found a property that is close to UAB. It’s a 3BR/2BA home. I couldn’t find any comps, but Eppraisal gave me a value for the home. The listing didn’t mention any rehab is needed. The pictures of the property are nice. I couldn’t get in touch with the Realtor, so I assumed there are no rehab costs. However, I did try different amounts in the analyzer just to see if it would pass, and it still passed. I tried different repair costs up to $10,000, and it still passed.
Purchase Price: $84,900
Renovation: $0
ARV: $146,625
Gross Monthly Rent: $2,799
Cost To Value Ratio: 57.90%
Cash Flow Cow: 3.30%
March 20th, 2010 at 9:37 PM
Hi Doug-
Got very excited about your program until I started looking around on Craigslist and locally.
I’m in Santa Rosa, CA with Sonoma State University close-by in Rohnert Park. This area does not seem
conducive to student rentals. I would almost have to steal a house or have extremely high rental rates to make anything work. Here is a cheap, cheap, 4BR house in the area, and the breakdown…and this is the BEST I could do. Probably worse at Cal Berkeley, Stanford, etc. Any ideas???????
Price: $219,969.00
Renovate: $10,000.00
Total: $229,969.00
Sale Value: $270,000.00
Rent: $2,400.00 ($600mo. x 4)
Pass
Pass
Pass
Pass
1.04%
Fail
Fail
Fail
Pass
March 20th, 2010 at 10:36 PM
Dear Doug,
I am a small business owner that has been involved in real estate sales and appraisals for over 12 years. Since both the real estate sales and appraisal areas have seen downturns in the past two years, I though it was time to look at other ways to make money in real estate. I am so glad to see a program like yours, in a niche that I would never have thought of. I have information about a potential deal located outside of Springfield, MO, a city with eight colleges and universities in the area.
This is a five unit apartment house with some deferred maintenance.
Purchase price: $25,000
Renovation Costs: $20,000
After Repair Value: $105,000
Gross Monthly Rent: $1750
Cost to Value Ratio: 42.86%
Cash Flow Cow Rule: 3.89%
This looks like a good deal to me. I hope you think it is a good deal as well. I am excited about the potential this market has for my future.
Kay
March 20th, 2010 at 11:05 PM
I found a great property in Greensboro, NC. It’s very near a major university (but not the largest one in town) at 312 Gant St. I checked the university stats and found that the university provides on campus housing for only approximately 25% of the students so there should be a good demand for student housing.
I called the realtor to get the repair and rental data. The neat thing is that the realtor was quite helpful and understood what I was trying to do and offered to find student housing properties for me which fit the criteria in your 60 second calculator in cell D14.
This particular property has a purchase price of $41K and renovation costs of $8K for a total cost price of $49K. The ARV is a minimum of $67K and could likely be in the low $70Ks. Thus, the cost to value ratio is a respectable 73.13 and the cash flow cow rule value is 1.84%.
I’m a working senior collecting social security (without penalties) whose first rental property adventure over four decades ago had the familiar landlord nightmares resulting in my retirement from active investing. I’m getting back into the game to fund retirement. Student housing, with your Magic Lease, looks like it might be just the ticket. I can hardly wait for your guaranteed funding video to get going.
March 20th, 2010 at 11:09 PM
Hello,just started doing realestate,no transactions yet.Thanks for the property analzyer,great tool.Gives you more confidence.Never thought about student housing until i listen to your video couple days ago. Found property 0.3 miles from Waynesburg,PA college.190 s.morgan st.waynesburg,pa.4 bedrooms,1 bth,middle school across the street also.
purchace price-35,000
renovation-10,000
after repair value-85,000-100,000 not sure did my own estimate.
cost to value ratio-52.94%
cash flow cow rule-4.00%
rent monthly-1,800
Looks like a great rental
March 20th, 2010 at 11:47 PM
Hello Doug, My name is Joseph Gauthier and I have no prior real estate experience. Truthfully speaking i’ve been unemployed now for over a year and half and find myself wanting to work for myself rather than going back to a employer.
I’ve talked to a realtor in the Grand Rapids MI. area and found 4 properties that have passed through your 60 second evaluation.
Deal 1
Price $13,000
Renovation price $ 0
Total Price $13,000
after repair value $ 46,800 (based off of property accesment
Rent $1600.00
Cost to value 27.78%
Cash flow cow 12,31%
Deal 2
Price 13,500
Revenvation costs $0
After Repair value $48,900
Rent $ 1,600
Cost to value 27.61%
cash flow cow 11.58%
deal 3
price $8,500
Renovation costs 0
after repairvalue $38,900
Rent $1600
Cost to value ratio 21.85%
cash flow cow 18.82%
deal 4
purchase price $12,500
renevation cost 0
after repair value $26,803
Rent $1600
Cost to value ratio 46.64%
Cash flow cow 12.80%
All deals I figured $400.00 per room, and all houses are 4 bedroom houses. A couple of them do have full basements with possible potential for adding a couple rooms. Also deal #4 needs appliances, I figured about $5000.00 probably a bit high but better safe than sorry.
Thanks for the videos i’m learning alot
Joe
March 20th, 2010 at 11:55 PM
I appreciate the time you have taken to share your techniques. I am a full real estate agent with income that varies. Therefore, it is critical that I stabilize my income with investments.
The home I found is a 6 bedroom duplex in Cincinnati that has recently been renovated. The advertised price is $49,900 or best offer. It is 1 minute from Xavier University and 5 minutes from the University of Cincinnati. One part of the home is currently rented at $750/month. The other portion is not rented yet. Rooms in the area are being rented for about $400.00 a month.
Here are the figures:
1. Purchase Price:$49,900
2. Renovation:$0
3. Houses are selling for $125K-200K
4. Gross Monthly Rent 6 rooms x $400 a month=$2,400 a month in rental income.
($400.00 obtained from searching rooms for rent on craigslist)
5. Cost To Value Ratio: 40%
6. Cash Flow Cow Rule: 4.80%
I hope this one wins!
Thanks,
Claire Thornton
March 21st, 2010 at 12:21 AM
FOR UNKNOWN REASON, THE PROPERTY SUBMISSION THAT I WAS WRITING HERE JUST GOT VANISHED.
HERE I AM, DOING IT AGAIN.
Hi. DOUG:
Words are inadequate to thank you for this program. I am a school teacher in New York City and I always wanted to buy properties for vacation rentals in Myrtle, SC and Naples In FL. Thank goodness that I have not been able to do so until as I am now learning about your system of rentals. This is awesome.
I find this property on the Craig lists, very close to Temple University, Philly, PA. I spoke to the owner through the telephone # that he put on the ad. and he was pleasant. THIS IS WHAT WE AGREE TO:
PURCHASE PRICE= $80.000
RENOVATING COST= $70.000
TOTAL= $150.000
AFTER REPAIR VALUE=$400.000
RENTS= $600×6= $3600
COST TO VALUE= 37.50%
75% PASS
CASH FLOW RATE= 2.40%
I checked the value using http://www.Zillow.com that a friend gave me to use to confirm the APR. of $450.000 that the owner gave me, I got $400.000. Well, what else can I tell you than YOU ARE AWESOME.
Thanks
YOLANDA
March 21st, 2010 at 12:43 AM
Ok Doug here is my deals then I will tell you about my self
Total of 208 Units in a 3 block area with in 3 1/2 miles for 5 colleges in Illinois
I spent 2 hours on the phone speaking with the colleges asking then do they need housing when I told them I told them I’m working on 208 units they flipped.
1) 40 units 2/1 purchase price $275,000
repairs $ 280,000
ARV $ 2,000,000
GMI $ 28,000
CTVR 27.75%
CFCR 5.05%
2) 100 units 2/1 purchase price $600,000
repairs $ 700,000
ARV $ 4,500,000
GMI $ 70,000
CTVR 28.89%
CFCR 5.38%
3) 36 units 2/1 Purchase price $ 500,000
repairs $ 252,000
ARV $ 1,900,000
GMI $ 25,200
CTVR 38.11%
CFCR 3.48%
4) 24 units 2/1 purchase price $ 250,000
repairs $ 168,000
ARV $ 1,200,000
GMI $ 16,800
CTVR 34.83%
CFCR 4.02%
The reason all for are as one deal because i’m trying to purchase in a package deal with all 4 owners because the property in all together on 3 streets in a 3 block sq.
now if I just purchase them and do straight rentals they would rent out at $650 per unit
but per the colleges 2/1 are 700 plus
there are 2 reg, schools close by to
any way total of 208 unit ARV with the right NOI would make them worth 9 to 11 Million when done
total Purchase price is about 3,400,000 w/ repairs
I have all the numbers here with the cost of repair at a high number they could be lower
I have done a lot of investigation on these units It’s a hot area HOT HOT
Ok a little about my self I have been Investing for 18 years purchased over 2500 houses
had over 350 rentals ( and will not do another single family rental again )
did all this with 10 bucks out of my pocket.
today starting over. 0
If I win I’ll say thank you very much and we both will spread the info from shore to shore
If I don’t win ok but I will not stop moving forward
Because let me tell you and every one out there reading this
I have looked at every JOB/or work there is out there work wise or pay wise
you can’t come near making the money as you can in Real estate no way no how
ALL YOU NEED IS SOME ONE TO HELP GET YOU GOING IN THE RIGHT DIRECTION
AND HELP YOU ALONG THE WAY.
Thanks EVERY
March 21st, 2010 at 1:20 AM
After seeing some of the deals her I am almost embarressed to submit this one but here goes nothing:
1 Purchase Price $35,000.00
2 Renovation Costs $10,000.00
Cost Price $45,000.00
3 After Repair Value $80,000.00
4 Gross Monthly Rent $900.00
Cost To Value Ratio 56.25%
75% Pass
70% Pass
65% Pass
Below 65% Pass
Cash Flow Cow Rule 2.00%
2% Pass
1.50% Pass
1.25% Pass
1.00% Pass
I have never done Real Estate Investing and have been recharged based on your videos re:Student Housing
Thank you, patiently awaitng results
March 21st, 2010 at 1:49 AM
3/1 house next to UMSL is t Louis,MO
Asking price 15,500
repairs 22,000
ARV 53,900
Gross monthly rent 1,200
CTV 70.09
CFCR 3.20
I have been “doing” real estate investing for ever. I got hocked when I sold my duplex twenty years ago and made 20k. I been trying to gt into RE ever since off and on but haven’t been very successful. I am pretty psyched about student housing especially since you have got that great lease with “the adults” backing the tenants up for rent and repairs. I can’t wait to see how to get these things funded so I can put some MONEY into my pocket. Thank Doug!
March 21st, 2010 at 2:28 AM
Dear Doug
i have been a Real estate Broker In NYC for ten years. I bought some fix uppers and sold them for a nice profit in 2003 and 2005. i now own and manage (ONE) Four family building and i can tell you what the headache is with tenants. Secondly, a Nigerian Doctor (friend) here in New York told me few years ago about the STUDENT HOUSING FORTUNE and how he went to Nigeria to Invest in the student housing properties. that are very close to two Universities over there buy i was not moved. i called him today to tell him about Doug’s program and he was proud to tell me that, HE NOW PAY ALL HIS BILLS IN NEW YORK with money transfers from the money that he is making in Nigeria from his two student rentals. Can anyone imagine that?
Doug! Please count me in on this lucrative business. I went to Craigs list today and this is what i found.
My daughter is a student in the Buffalo University, so I chose Buffalo NY.
PURCHASE PRICE: $5.000. (FIVE THOUSAND)
RENOVATION COSTS: $15.000
TOTAL COST: $20.000
ARV: $40.000
RENTS: 300X4 ROOMS: $1.200 per month
COST TO VALUE RATIO: 50.00%
75% PASS
CASH FLOW COW RULE: 6.00% PASS
THIS IS SWEET.
Thanks again Doug and Stay Blessed
Manny
March 21st, 2010 at 3:20 AM
Hello Doug! My name is Ty, I’m 26, and I currently reside in Bridgeport, CT with my girlfriend and her soon-to-be 2 year old son. We also have another boy on the way come July! I am an intern architect with a high-end residential firm as well as an apprentice to project manager for a contracting firm. Since high school, I’ve had a passion to bring my creativity and design skills to an urban setting; more so commercially than residentially. But living in Fairfield County, one recognizes the amount of and the attention to detail that goes into the ‘high-end’ residences I’ve had a hand in drawing and building since moving here.
Long story short; I moved in the area after graduating from Temple University’s Architecture program in ‘07 and I feel like I’ll be paying for that education forever, with no end in sight. The payments have gotten out of hand in addition to rent, child care, car, car insurance, etc. And I’ve definitely over-extended myself especially with the standstill in new residential construction. I’ve taken a couple of real estate courses in college but never invested, became a realtor, or brokered, etc. My education is mainly from literature. The information you have provided in the 1st three videos have got the juices flowing and I feel it is time to at least act on an opportunity to provide for my family’s present and future. I’m ready to hit the ground running but also realize I must take precautions which is why I’m choosing, I think, a winning deal but also one that is with little risk and easy to manage as it is a single-family.
A short walk to Albertus Magnus College and exactly a 5-6 minute drive (2 miles) from Yale University, located on the Hamden/ New Haven border, this 3 bdr/ 2 bth, 1582 sq ft single-family has a…
Selling Price – $46,000 (includes $7,500 in back taxes)
Repair Costs – estimated $40,700 (includes a $5,000 reserve) However, I work for a contracting firm!!!
– just framing inside, some drywall, and needs heating and plumbing
– already has new roof, new windows, new doors, and deck
– electrical is roughed in
– drainage is in place but needs new hot/cold feeds
– no permits were pulled during original rehab
ARV – $135,000
– comps include 3 bdr/ 2bth, 1530 sq ft single family selling for $152,000 on 10/1/09
– 3 bdr/ 1 bth, 1687 sq ft single family selling for $143,400 on 10/16/09
– 3 bdr/ 2 bth, 1428 sq ft single family selling for $158,000 on 10/29/09
Gross Monthly Rent – easily $1200 – $1500
Cost to Value Ratio – 64.22%
Cash Flow Cow Rule – 1.38% – 1.73% (naturally, discounts/cuts to renovation costs easily put it over 2%)
I am looking forward to your decision as I have seen great opportunities from others on this blog. But if I am not chosen, I still can’t wait to see your revealing of tips to guaranteed funding. Best of luck to all and again, thank you Doug for the info. I don’t see myself letting this go to waste.
Regards
Ty
March 21st, 2010 at 5:41 AM
Hi Doug:
My name is Jaime Castro, I am 54 years old with a family of five, my wife, two teenagers and a handicap daughter. I have been unemployed for the past three months living off my savings and looking for a way to make money. Finances are very tight right now. Thanks for making this contest available to everyone. This opportunity could really help my situation. I am just starting to learn about the real estate business and came across these videos. I appreciate the time you have taken to share your techniques. You are the first investor that offers an opportunity without asking for money at front. That has a lot to say about you. You are the real deal!!!
I found a few deals next to or close to an university here in Florida. There are bank owned apartment buildings across the street also available if you are interested. Now is the time to get into commercial real estate.
Deal #1: 3BR- 2B
Purchase Price: $57,600
Renovation Cost: $1,669
Cost Price: $59,269
After Repair Value: $93,393 (Comps)
Assessed Value: $114,000
Gross Monthly Rent: $1,200
CTVR: 63.46%
CFCR: 2.02%
Deal #2: 4BR- 2B
Purchase Price: $86,772
Renovation Cost: $1,710
Cost Price: $88,482
After Repair Value: $126,404 (Comps)
Assessed Value: $159,000
Gross Monthly Rent: $1,600
CTVR: 70.00%
CFCR: 1.81%
Deal #3: 3BR- 2B
Purchase Price: $42,000
Renovation Cost: $1,457
Cost Price: $43,457
After Repair Value: $103,304 (Comps)
Assessed Value:
Gross Monthly Rent: $1,200
CTVR: 42.07%
CFCR: 2.76%
March 21st, 2010 at 2:40 PM
Doug,
I may need your help on this one. This is a 42 student housing complex w/upside @ Western Carolina University. It has Ocupancy rate of 100% with a Cap Rate of 6.75% and N.O.I. of $114,750. It however has a hefty price tag of $1.7m.
http://asheville.craigslist.org/reb/1639450997.html
I recently attended a 4 day live VSSI (Virtual Short Sale Investing) event in L.A. and one of the presenters was Karen Hanover talking about the recent and more coming foreclosures in commercial. We were given an opportunity to partner with DC Fawcett of VSSI (I’m a current student) to do short sales of commercial properties. It required to pay to attend a boot camp to learn about commercial property investing. I couldn’t afford to take on another training/partnering opportunity at the time. However, Karen gave us some key information about knowing whether a property was suitable for investing in. She talked about Cap Rate and Net Operating Income but just touched on the subject. I took notes but there was a lot to know, hence the boot camp.
I don’t know if this is a suitable application for your Profit Analyzer. It appears to be too pricey to be worthwhile for our purposes. What do you think? I would appreciate your input.
March 21st, 2010 at 3:18 PM
Hello Doug,
I didn’t fully download “Profit Analyzer” to the fullest extent but from the preview it appears
to me like it’s a program built into a Excel spreadsheet which accounts for various cost
factors on the specific property you put into the program. Depending upon the age of the property; for example the property pictured would need “upgrading” for newer devices.
Student rentals are “a Diamond in the rough” and require extensive searching by the targeted audience to find affordable housing. I’m intrigued by it enough to expand on the thinking.
Since being introduced to this new concept, I haven’t had a chance to expand on the thinking as yet. But a consultation with someone like yourself, would definitely give a person an advantage over others. Thanks.
March 21st, 2010 at 3:50 PM
Doug I just wanna tell you that God is truly going to bless you for helping others. You could have easily charged us an arm & a leg for this information, but you didn’t. Just knowing what to do is all some people need to get going without any further coaching. Thanks again.
March 21st, 2010 at 3:56 PM
Doug,
I decided to give the Profit Analyzer a try with the 21 unit (42 student) housing complex near WCU. Assuming that the value is $138/SF based on two other listings in area, and N.O.I. of $114,750, rent for each room could be $800 ($400 each student). The offer price would have to be at $1.3m (it’s an older unit) with minor repairs and value $1.8m based on $138/SF for 13,000 SF.
So here’s the deal:
Cost of Purchase: $1,300,000 ($400,000 less than listing price)
Cost of Renovation: $40,000 conservative (100% occupancy so may just need interior painting/cleaning)
After Repair Value: $1,800,000 (based on $138/SF for 2 other student housing listings near campus)
Gross monthly rent: $16,800 (based on N.O.I and $800/unit)
Cost to Value Ratio: 74.44%
Cash Flow Cow Rule: 1.25%
Congrats you”ve got a winner here.
Better move forward ASAP
I know this is not the typical application for this tool, but the Profit Analyzer does make the deal look pretty good if we can purchase at a discount. The demand for student housing at the University is very high, so there is great upside potential. There are two other student housing complexes for sale. This does make you wonder what is going on for these to be for sale. I will give a call to the Craigslist poster to get more information tomorrow.
March 21st, 2010 at 4:52 PM
Doug here is a great 196 unit within 1 mile of a college….
Purchase price $4,508,000.00
renovations $100,000
ARV $6,200,000.00 ($1,692,000 equity) WOW
Cost to Value 74.32%
Cashflow Rule 2.54%
I have a a deal in the works to pick this up with very little down…moving forward… working on my investors
I grew up in a college town and my grandfather did this stuff…well!!
he passed when I was only 12 and it was not until I saw your video that I remembered my roots and it is in STUNDENT HOUSING…thanks so much…not only did the lightbulb light up for a business opportunity…but this brings back alot of good memories of my grandpa helping him with his houses… thanks so much. cant wait to see more videos
March 21st, 2010 at 5:40 PM
Doug, (I bet you’re getting tired of me!)
Here’s a deal in Chicago. My daughter currently attends Moody Bible Institute (Senior). She and her husband (Moody alum) rent an apartment downtown in low income highrise on Hill St.
Estate Sale. 2 bed/1 bath yellow brick ranch across the street from Schmidt Elementary School. 1 year old roof. Huge unfinished basement has room for 2 more bedrooms. Enough space to transform the 1.5 car garage into a 2.5. Lots of potential. Sold as is; needs work.
Cost to Purchase: $69,000
Cost of Renovation: $40,000 (Rough est. add 2 bdrm/1bath in basement – clean/paint)
Cost Price: $109,000
After Repair Value: $150,000 (zillow estimate-may be a little high)
Gross Monthly Rent: $2,400 ($600/bdrm with 2 additional bdrms)
Cost to Value Ratio: 72.67%
Cash Flow Cow Rule: 2.20%
Congrats you’ve got a winner here.
Better move forward ASAP
March 21st, 2010 at 5:40 PM
Property located at LaSalle University
Purchase Price: $64,999
Renovations: 30,000
After Repair Value: $135,000-160,000 based on Comps
Gross Monthly Rent: $2000+
Cost to Value Ratio: 70.37%
Cash flow Cow rule: 2.11%
Just started looking at rental properties but I love your niche of the college market. Couldn’t be more simple stupid which is why it works.
March 21st, 2010 at 5:49 PM
Doug,
I found a deal & plugged the numbers into the analyzer, here is what came out the other end:
It’s a 19 unit complex of 4 & 5 plexes near Albany State university in Georgia.
Purchase price $90,000 for 19 units
Rehab cost $75000
Gross monthly rent $6175
Cost to value ratio 44.53%
Cash flow cow rule 3.74%
I love to analyze commercial property. I’m trying to get other serious investors together to get involved in niche investment strategies like yours but having limited success – any pointers?!?
March 21st, 2010 at 6:04 PM
Hi Doug,
Here are the details:
Purchase Price: $7,800
Renovation: $0.00
Cost: $7,800
After Repair: $26,000
Gross Rents: $525
Cost to Value: 30%
Cash Flow Cow Rule: 6.73%
This property is near Youngstown University.
About myself, I am a novice investor with two kids under 2 yrs.
I have a regular job working for the Gov’t but would like to be a full time investor.
Thanks!
March 21st, 2010 at 6:15 PM
Doug,
My name is Deon Waddell I have to say this is exciting material. I have been trying to get into the real estate game for 8yr and could never get started. I have bad credit and no cash due to a divorce. However, I bought of lot of no money down courses trying to find a way to get started. Nothing ever panned out except for a lot of disappointment. I discover wholesaling which got me excited in real estate again. I’ve have been actively searching for my first deal. I’ve been looking at a lot of properties and making offers. When I received this email link from Michael Jake (localmentor.com) my mouth dropped and I can’t stop talking about student housing. I have a deal I located close to Pittsburgh, there are over 7 colleges and university within 3 miles of each other. The deal is about 1 mile away from all of them.
Purchase Price is $120,000
Renovation Cost is $ 100,000
After repair Value is $315,000
Gross Monthly Rent is estimated from the agent $4,500
Thanks for the opportunity!
March 21st, 2010 at 6:34 PM
Thank you for making this opportunity possible for me to start making an investment that would be profitable now and in the near future. I have been interested in real estate and at property near the University of Alaska Fairbanks. I would like to open rental units to college students possibly on a yearly or semester basis.
There is a multiplex at 1818 University Avenue, Fairbanks, AK 99709 on sale for $475,000 with $95,000 down, 5060 square feet, built in 1962 for owner occupied investment with estimated monthly payments of $2,157.60.
This would be my first real estate investment. I hope to secure adequate financing and welcome this opportunity for you to provide all the training and knowledge you have toward making this a huge success in Fairbanks, Alaska.
March 21st, 2010 at 6:48 PM
Two more…
Price: 35,000
Reno: 30,000 (est)
ARV: 300,000 (comps took low)
GMR: 1,500 (3 x $400) – rents are $500 but input $400
CTV: 23.33%
CFCR: 1.71%
Price: 77,000
Reno: 35,000 (est)
ARV: 400,000 (comps took low)
GMR: 2,000 (5 x $400) – rents are $500 but input $400
CTV: 28%
CFCR: 1.79%
This is way fun and maybe if everyone on the list pooled, we could all pitch in and buy one. Then leverage that to buy another. And so on …
March 21st, 2010 at 7:01 PM
Hi Doug:
My name is Mark Rozario. I live in Canada, just about one hour’s drive from Niagara Falls, NY. I am 59 years old, and I am currently a small landlord in Ontario. I have not done any student housing yet. I feel that student housing is easier done in the US than in Canada. Hence, because of proximity to me, I searched Craigslist for Niagara Falls/Buffalo, US. There was not much to choose from, so I chose a property that has an asking price of $52,900 (See link below). The seller says “the property has been updated in and out”, and hence there is no Renovation Costs, and hence the property “fails” because the “After Repair Value” is the same as the Cost Price. Even so, I think that there are possibilities with this 5-bedroom property if/when the current tenant moves out. The current tenant is paying $1,300/month. The property is said to be within “Walking distance to University of Buffalo”, in which case if used for student housing could fetch a higher income.
http://buffalo.craigslist.org/reo/1652063926.html
March 21st, 2010 at 7:18 PM
the deal is a 5250 sq ft 5 unit apartment. 10 miles from college. 4 3 br units and 1 1br in basement 49,000 asking price 20,000 fix up . reo with financing set with 10% down. Offer 40.000 with 5000 down and 15000 cash out for repair and they pay closing cost out of the 5000. fmv 150,000. three month repair with three units ready in first month. $4000 per month rent. looks like a good deal to me. I have 2 duplexes 1 sfr and a 20 unit 1/2 with students and a 5 unit that I assumed from a bankrupcy.
March 21st, 2010 at 8:01 PM
Doug here is repeatable dea!
Have modular home builder who built a “fraterenity” house for his son in Gainesville, University of Florida. His plan was bit more palatial than necessary. But basically a 7 unit plus community room containing 2,112 square feet. Each unit is 12 x 20 with bath and 5×5 closet. This allows eneough room for a desk and under conter fefrigerator, microwave etc.. Four up and 3 down leaving a 12 x20+- first floor room for the big TV and kitchen. This is also large enough to house two students per room but I don’t know if there is a markert for that.
The factory cost is $40-$45 PSF. The foundation with install is $30,000. I found a $35,000 lot within walking distance (easy bike ride) of the St. Petersburg USF campus so total is $157,000. I think resale is around $100 PSF or $210,000. The dorm is charging $800 per month for 9 months. I think I can get at least $500 per month since new etc. This $3,500 just makes 75% cost to value and 2.23% coverage.
I can manufacture this and ship anywhere your student wants one.
Comes in four parts to be assembled on site with crane and takes 3-5 weeks after order is placed.
March 21st, 2010 at 8:45 PM
OK. Found another great deal:
Purchase Price: $80K (short sale approved price–duplex across the street from the school)
Repairs: 0
ARV: $125,000
Gross Monthly Rent: $1,800
Cost to Value Ratio: 64%
Cash Flow Cow Rule: 2.25%
March 21st, 2010 at 8:45 PM
Hello Doug,
My name is Michael, from Westchester, New York and I want to thank you first for getting my blood flowing. This contest was exciting, just to be in the race…so cool. Don’t know about all of the other contestants, but as simple as your contest is. As available as information is via the internet. In the time from the start of the competition to now $4:30pm Sunday afternoon. There was no way for me to get contractors estimates for the six properties I found. So I stacked the deck against myself, and what I mean by that is that I gave my property a $25,000 renovation cost! I doubt very seriously that it will cost $25,000 to get this house up and running. But…I still have a winner!!! Here’s how she plays out…
Just as a point of matter…we can go as low as $2,300 on the rent and still this is a WINNER!
Anything less than $25,000 on the renov. just adds to the sweetness of the deal! I’m excited!!!
This property by the way is near Hofstra University, which happens to be a private university…cost is not cheap. The $2,300-$2,750 should not be a problem. Thanks Doug for stirring the juices!
Purchase Price: $159,000
Renovation: $ 25,000
After Repair Value: $396,000
Gross Monthly Rent: $ 2,750
Cost To Value Ratio 46.46%
Pass 75%
Pass 70%
Pass 65%
Below Pass 65%
March 21st, 2010 at 8:47 PM
26th and park in waco, tx
$47000 / 2br – owner fin.
2br/1bath 900+sqft fenced yard
Rent est at $850
Repairs est at 7K
After value repair 70K
cost to value 74.14%
Cash flow Cow Rule 1.64%
March 21st, 2010 at 8:52 PM
Hi, Debra here. I’m 55 years old and living on a fixed income. :-< Retirement from The Ohio State University. I have fair credit, NOT a dime to my name, and am a brand new RE investor and have no idea what I'm doing. I NEED this. I NEED this. I NEED this. Easily found one and could easily find others.
Location HUDSON at MEDARY
Purchase Price $69,900.00
Renovation Costs $6,000.00
Cost Price $75,900.00
After Repair Value $160,000.00
Gross Monthly Rent $1,500.00
Cost To Value Ratio 47.44%
75% Pass
70% Pass What should I do next?
65% Pass Congrats, you've got a winner here. Better move forward ASAP
Below 65% Pass
Cash Flow Cow Rule 1.98%
2% Fail
1.50% Pass
1.25% Pass
1.00% Pass
I NEED this. I NEED this. I NEED this. Pick me for your first prize. I NEED this. I NEED this. I NEED this.
March 21st, 2010 at 8:57 PM
Doug:
Thanks for all the great information. About 10 years ago, I purchased 3 student housing rentals out of state that I never visited or managed. Three years later I sold them for a 800% profit. The best real estate investment in my 15 year career. Unfortunately, I turned the “4 houses into the hotel” and bought a 30,000 square foot commericial building with the student housing profits. The commercial investment did not go well and I am back to square one. Your videos reminded me of one of the ways I built wealth in real estate.
Here are a couple deals I found. I look forward to your funding video tomorrow.
Purchase Price $60,000.00
Renovation Costs $5,000.00
Cost Price $65,000.00
After Repair Value $136,500.00
Gross Monthly Rent $1,200.00
Cost To Value Ratio 47.62%
75% Pass
70% Pass
65% Pass
65% Pass
Cash Flow Cow Rule 1.85%
2% Fail
1.50% Pass
1.25% Pass
1.00% Pass
March 21st, 2010 at 9:01 PM
Here is my second deal close to a Florida University:
Purchase Price $30,000.00
Renovation Costs $5,000.00
Cost Price $35,000.00
After Repair Value $70,000.00
Gross Monthly Rent $800.00
Cost To Value Ratio 50.00%
75% Pass
70% Pass
65% Pass
Below 65% Pass
Cash Flow Cow Rule 2.29%
2% Pass
1.50% Pass
1.25% Pass
Look forward to tomorrow!!!!
March 21st, 2010 at 10:04 PM
Philadelphia, Woodland Av. close to pharmacy School.
1 Purchase Price $19,500.00
2 Renovation Costs $20,000.00
Cost Price $39,500.00
3 After Repair Value $65,000.00
4 Gross Monthly Rent $700.00
Cost To Value Ratio 60.77%
75% Pass
70% Pass What should I do next?
65% Pass Congrats, you’ve got a winner here. Better move forward ASAP
Below 65% Pass
Cash Flow Cow Rule 1.77%
March 21st, 2010 at 10:18 PM
Hi Doug -
Wow! You really know how to get an old guys heart pounding! Fantastic information. I’m 64 yrs young, married to college sweatheart for nearly 42 years. Laid off in Oct, ‘08, and unable to find JOB for man my age, but am looking at starting a new company helping comm owners lower their federal income tax and increase their cash flow at the same time. I invested in real estate in early 80’s in Houston, and then lost my butt when the market turned south, like in today’s market! Have had a longing to get back into R/E, and this may be the ticket?!
I found three properties that “Passed!” Two in the Houston area and one in Dallas. But, I did not find them with the keywords you suggested. Did not work in Houston and Dallas. Used “college rehab” that one other viewer of yours suggested, and it worked. Strange…
Prop #1: Dallas, TX
3 BR/1.5 Baths/Garage/1.048 S.F./B-fast Nook,Central A/C, Central Heat, Family Room, Living Room/Tile Floor/Yard. Property Rehabbed in 2007. $2,000 Deposit Wins this Contract.
Purchase Price: $32,000
Renovation Cost: $3,000
After Repair Value: $62,000
Gross Monthly Rent: $800
Cost To Value Ratio: 56.4%
Cash Flow Cow Rule: 2.29%
Prop #2: Houston, TX
3 BR/2.5 Bath Townhouse/Near 2 Colleges
Purchase Price: $35,000
Renovation Cost: $12,000
After Repair Value: $67,500
Gross Monthly Rent: $900
Cost To Value Ratio: 69.63%
Cash Flow Cow Rule: 1.91%
Prop #3: Houston, TX
3/2/2, 1,761 S.F., Central A/C, Heat, Dining Room Dishwasher, Dryer, Fireplace, Living Room, Washer
Purchase Price: $51,000
Renovation Cost: $8,000
After Repair Value: $87,000
Gross Monthly Rent: $750
Cost To Value Ratio: 67.82%
Cash Flow Cow Rule: 1.27%
Thanks for the opportunity to participate in the Contest. I’m sure you have way more homework than you expected. Send some my way to help you.
There really are no losers in this, are there? You will have generated an enormous database of contacts and properties with which to wend your magic, one way or the other, as I see it.
Hope we can work together.
Onward & Upward!
Terry L. Schell
March 21st, 2010 at 11:00 PM
Hello, Doug,
After seeing your great Magic Lease video, I knew you had something good going! Only after educating myself over the last two years have I begun to see a profit in my formerly ‘bad hobby’ rental business. I now am making a profit and looking to expand.
This deal is less than 2 blocks from USC! The address is 3810 Woodlawn Ave., Los Angeles, CA. It is a duplex that was recently upgraded, then had some vandalism. I have a message in to the realtor to find out the estimated repair costs, but I made an assumption after viewing the aerial and street maps of the neighborhood and plugged in a number – I am a mover! Next, I reviewed going rents by using Craigslist.
The asking price is $99,000, the area values are $229,000, the repairs number (I figured exterior paint job and minor repairs) is $5,000. Going rents in the area start at $975 and go up to $2700 for a single room; I used $800 per room. (net). This puts the Cost to Value Ratio at 45.41% and the Cash Flow Cow Rule at 2.31%, using your awesome Cash Flow Tool. This is a place with great built in equity and cash flow!
So there you have it, Congratulations on your achievements to date, Lisa
March 21st, 2010 at 11:19 PM
I have been looking forward to investing /working real estate virtually for about 1 year…
I am a “have not done a deal yet” beginning investor. I have years learning this and wanting to just do it… And now with the different market, I have been studying more new courses. Preparing with a new model.
I am now working on my buyers list, which is key…
I really like the idea of student housing. This would be great if I could get it to work for me!.
It looks like I found a deal that smells right…
the Cash flow tool told me I have a deal: 816 NW 11 ST 602, MIAMI, FL 33136
2/2 never lived in condo
within walking distance to University of Miami Medical Campus.
and Jackson Memorial Hospital, Great city view. Close to train station. 24 hr security.
Purchase price: 80K
Renovation costs: 1K
After repair value (Zestimate): 156K
Gross monthly rent: $1,100/mo
Cost to value ratio: 51.92
Cash flow cow rule: 1.36
Congrats, you’ve got a winner here. Better move forward ASAP
I hope so…?
March 21st, 2010 at 11:22 PM
5 unit apartment building near Temple Medical school
offer price $55,000
Renovation cost $20,000
after repair value $150,000
Gross Monthly rent $800/month times % units = $4000
Cost of value ratio 50%
cash flow cow rule 5.33% pass
March 21st, 2010 at 11:26 PM
Doug,
I will try this again, as my internet system keeps going out and I have to start over again. I am 22 years old and know that realestate is the way to make money and cash flow. I have not had the cash needed to go through with the deals or anyone to show me how to get the money. I live in So.Ga. there is a State College and Tech school here, Craigs list did not pop up any Rehabs and was unable to get in contact with the people to ask questions as it is Sunday also. The ones I found were:
>$22,000 FIRESALE 5bd needs paint, plumbing upstairs could be duplex $1,000 ernest money. view at haus-9u4zh-1651703779@craigslist.org
>3bd-2b, 100yd from college,vacant, NO PRICE, $995 rent : hous-gdapd-1628667302@craigslist.org
>$141,500, 3bd-2ba, $850.00 mo rented and a $124,000, 2bd-2ba restored: jd@jdyeager.net no other info on these.
>$239,900, Renovated, 2-1 rents $385.00mo, A has 4 units, B has 3 units, 800sq ft per unit, from HomesandLand book MLS#77064
>2br upstairs/2down, leases $1,000mo one block from college, MLS#81627 Hm&Lnd book
The above is what I came up with as I could find the details tomorrow but it would be too late to summit then. This is a very exciting way to do realestate and would like the chance to put it into action. I would also like to travel the way you did especially going to Australia that is where my only living uncle I have never met in person lives in Melbourne. I am taking foreign languages that would help with my travels and would like to earn my degree from college the cash flow would definitely help to fund all that.
March 21st, 2010 at 11:26 PM
Doug,
I found a shadow property near the Colorado State Uni. 10 rm, 6bd, 3bth, 3845 sq ft
price: $335000 My purchase offer: $285000
rehab est: $10000
ARV $395000
rent: $6000
March 21st, 2010 at 11:33 PM
Hi Doug,
Great video and thank you for the opportunity you’re giving us. Your 60 Second Property Analyzer is awesome…really quick and easy to use!
I’m a single dad of the 2 little girls, 4 and 6 years old, struggling to make ends meet when I loss my job about couple years ago. I then started my online business trying to survive through this tough economy. I just got involved in Real Estate last year when there were so much foreclosures and short sales across the nation, and then came across your blog on Student Housing Investment (which I have never thought about). After watching your videos, I was so excited that I started doing some research on properties for Student Housing, and I found several deals but there’s one that I feel will give a great cash flow and excellent ROI, especially in today’s financial climate. What so nice about this property is that it is zoned in R10 for Multi Unit Residential Housing with multiple unit income potential, lots of equity potential and lots of development potential on the block.
Well, here’s my deal:
1. Purchase Price: $ 77,000
2. Renovation Costs: $ 30,000
3. After Repair Value: $350,000
4. Gross Monthly Rent: $ 2,500
Cost To Value Ratio: 30.57%
Cash Flow Cow Rule: 2.34%
I believe if we can get this deal funded, the profit will be unbelievable! Look forward to hearing from you next week and thanks again for this opportunity!!!
Cheers,
-David
March 21st, 2010 at 11:43 PM
Doug, found another one near Colorado State Uni.
pre forecloser 2349 sq ft 6bd 3 bth
cost $195000 my offer $165000
rehab $10000
cost $175000
ARV $210000
rent $4800
Cost to value = 81% I felt the rent at $4800 or higher because of the 6 bd would make this a candidate.
March 21st, 2010 at 11:54 PM
Hi Doug, First, let me start off by saying that I’ve heard a lot of gurus and have attended a lot of seminars and none have got me as excited over an opportunity as yours! Your philosophy makes sense! Virtually turning houses into apartment type rentals, mitigating your losses and putting the parents on the line for property upkeep -it’s great!
I’m a Yale University graduate that is tired of working for a paycheck! I’ve been investing in real estate since 2005, bought 5 rentals at the height of the market and have been working my way out of the ditch since! I’ve recently acquired my CA broker’s license and have been working on an RE business flipping REOs, so your philosophy is right in line with my current business plan. Flipping student housing REOs seems like a much better approach! Now with my wife diagnosed with breast cancer and my newborn having turned 1, I need to make this work!
Here’s a couple of deals that others have not found:
KCMO
1. Purchase Price $15,900.00
2. Renovation Costs $20,000.00
3. After Repair Value $78,000.00
4. Gross Monthly Rent $1,800.00 ($450×4)
5. Cost To Value Ratio 46.03%
6. Cash Flow Cow Rule 5.01%
Providence, RI
1. Purchase Price $50,000.00
2. Renovation Costs $40,000.00
3. After Repair Value $240,000.00
4. Gross Monthly Rent $3,000.00 ($500×6)
5. Cost To Value Ratio 37.50%
6. Cash Flow Cow Rule 3.33%
Thanks for the opportunity and please keep the information coming!
March 21st, 2010 at 11:58 PM
Okay I’ve got a possible. I’m waiting for a callback.
It’s just gonna make the minimum, so I’m still looking, but I did NOT want to end the day without finding at least one.
purchase asking: 79900
repairs: still waiting for estimate, but rehab is half done with kitchen cabinets etc installed
after repair: 115,000
cost to value: 69.48% …but this is before cost of repairs, where even just 5k in repairs makes it 73.83
SO I would have to make lower offer…but I doubt they expect asking price.
rent: 1,200
Cost to value: 1.50….down to 1.41 if 5k required at this purchase price.
Back to the goldmines!
Back to looking!
March 21st, 2010 at 11:59 PM
Doug
Found this 4 bed/1 bath 1360sq ft sfh next to both Florida State University(10 blks) and Florida A&M (5 blks) University and next to a Country club.
Rent ready or rehab for retail sale
Ask: $60,000
AS-IS $100,000
rehab: $15,000
ARV: $144,500
RENT 4 x $500 = $2000/mo
I’ve already contacted Realtor and offered $55K cash
March 22nd, 2010 at 12:13 AM
Hi Doug,
Thanks for this opportunity. I found a good prospect within the first 15 minutes on Craigslist!
I am 55 years old and have been self-employed most of my life as a graphic designer. There is no way left to go but up from here! I got interested in buying real estate below market value 15 years ago when I was looking for a home for my young daughter and I. I have always been good at finding deals, I call it treasure hunting. I realize now how very little I knew back then and am excited about the incredible opportunity happening in today’s market. My dreams are being realized by getting out there again. I have found my direction and I am finding deals! I thank investors like yourself who are giving us Newbies for giving us this contest with possible funding opportunities, and great mentoring!
Property #1 Los Angeles, duplex near USC
Purchase price: 99,000
Renovation Cost: 25,000 (high estimate)
After Repair Value: 215,000
Gross monthly rent: 1,700
Cost to Value Ratio: 53%
Cash Flow Cow Rule: 1.76%
March 22nd, 2010 at 12:18 AM
10-Unit No Brainer, Cashflow Unit
phpRmAXdC
Hello Dug: I am a blind mobile entertainment company who has recently decided to get in to real estate investing. If I can do this anybody can! The deal I found is at a 75% cost to value rate and a 1.56 on the cash cow rule. It struck me as really funny that the property owner put the statement “if you are looking for a cash cow property look no further” in his property discription. My first thought was does Dug already own this? but here it is and I hope to get the possability to work and learn from your valuable experience. Thanks
List Date: 3/16/10
Property Type: Multifamily
Status: Available
Address:
To be disclosed if you pick this deal or are interested in working it with me.
Harrisburg, PA
Number of Acres: 0.25
Number of Units: 10
Number of Bedrooms: 12
Number of Bathrooms: 11
Sale or Lease: Sale
List Price: $295,000
Description of Improvements:
Great rental property with absolutely fantastic income potential
How to Access property:
Call me at 1-877-2303208 and let me know how to contact you
or visit my website
http://www.housesellerguy.com and click on the wholesale deals button to be notified of any deal like this I find. Note I do not have this property under contract I found it on a website of another investor so we need to move on it as soon as possible!
Property Owner’s Comments:
Looking for a “cash cow” property? Look no further!
Information:
Rental Income Sales Price $295,000 Make me an offer!!!!!
Street (Front Building) Size of Apt. Monthly Payment Annual
Apt 1 2 BR / 1 Bath $650.00 $7,800.00
Apt 2 2 BR / 2 Bath $695.00 $8,340.00
Apt 3 Studio $450.00 $5,400.00
(rear Building)
Apt 1 1 BR / 1 Bath $450.00 $5,400.00
Apt 2 Studio $395.00 $4,740.00
Apt 3 Studio $395.00 $4,740.00
Apt 4 Studio $395.00 $4,740.00
Apt 5 Studio $395.00 $4,740.00
Apt 6 Studio $395.00 $4,740.00
Apt 7 Studio $395.00 $4,740.00
Total Total
$4,615 $55,380.00 Note I think we could raise these rental values if it was being utilized as student housing.
Expenses
Monthly Annual
Common Area Electric (PPL) $100.00 $1,200.00
HRG Utility Bill (water,trash + Sewer) $991.66 $11,900.00
Insurance $1,000.00
Taxes $2,765.00
Maintance + Vacancy Heathly 10% $5,538.00
Total
$22,403.00 Note I believe that it may be possible to lower these costs if we utilize your magic lease and make the tenants responsible for some of them.
Profit after Expenses
$32,977.00
This property is in Harrisburg PA and is 3.64 miles from one college center that serves as a major hub for several colleges in the area. The travel time to this center is just 10 minutes. It is also just 2.7 miles (6 minutes travel time) from a community college that has more than 9000 students. Yet another college is just 5.7 miles or (11 minutes travel time) away. There is a technical institute 8 miles or (15 minutes travel time) from this complex. There are actually too many colleges and technical schools in the area to mention here so here is just a few.
Harrisburg University of Science & Technology (.076 miles 2 minutes travel time)
Penn State Harrisburg (6 miles or 12 minutes travel time)
Eastern University(3.85 miles or 11 minutes travel time)
Widener University (6 miles or 12 minutes travel time).
Empire Beauty Schools(3 miles or 9 minutes travel time)
March 22nd, 2010 at 12:21 AM
Hi Doug–
When I saw your first two videos, I thought “interesting idea” but still wasn’t convinced that it was something I could do or that it could be as easy as you stated. I’ve been dabbling in learning about REI for the past 4 years. Worked on two small rehab/flip deals w/a friend – make a small amount of $$ on the first deal but got seriously “burned” on the 2nd and busted up a longtime friendship over it! Was still interested in getting into the REI game, but didn’t have enough guts or any money left to do so on my own, so I just watched from afar. Decided at the beginning of 2010 that I was tired of working the 9-to-5 job and needed to find something else to do from home and thought about REI again. Took my last bit of savings and ordered another RE system-in-a-box. Two weeks later I was laid off from my job of 10 years!! Was petrified, to say the least b/c now I really needed to get something going to bring in some SERIOUS cashflow!!!
Anyway, when I looked at your videos, I totally was not going to submit anything for the contest; but, after reading a submission from another person referencing the DC area, I thought I needed to get in the game b/c I don’t want to have to find another J-O-B. I want to work on my own terms, so here goes…
Purchase price = $60K (single family home zoned as split unit)
Repairs = All cosmetic – $15K (to rent) — $40K (for resale)
Comps = $70K-190K (I used $130K)
Rent $400, for both units, could be more
Taxes = $2200/yr
For two (2) units, I used rental price of $1000
Good structure; first floor and basement gas; 2nd floor baseboard heat. Dry basement, good roof, good electric. Original structure is 3BR/2BA house. Near Johns Hopkins University. New apt. bldg. across the street and coming soon, Walmart and Starbucks a few blocks away. MOTIVATED SELLER.
W/Rent = $1K, Renovations = $20K and ARV = $130K
CTV = 57.69%
CFCR = 1.33%
W/Rent = $1K, Renovations = $15K and ARV = $100K
CTV = 75%
CFCR = $1.33%
I love the analyzer tool!!! I ran several different scenarios through it and the lower the cost of the renovations, the lower I can drop the rent (if needed) to still make the deal work.
I’m sure this isn’t the best deal that’s been posted but I can hardly wait until you post the funding video. I found a couple of other SFH that are set up as multi-units but are not close to schools but close to various industries (i.e., Johns Hopkins Hospital). I’m sure they could be used for medical resident housing b/c of their promixity to the hospital. Do you think the same strategy could work those units as well? The CTV’s are around 57.69%. Thanks for your help and the deal analyzer! I’m feeling like I can really do this for a living!!
Annette
March 22nd, 2010 at 12:27 AM
PP: 16,325.00
Renovation: 13,350.00
Cost: 30,175.00
APV: 65,000.00
GMR: 563.00
CTV 46.42%
CFC 1.87
INDIANAPOLIS, IN
2 BLOCKS FROM IVY TECH COMMUNITY COLLEGE
March 22nd, 2010 at 12:38 AM
Doug
MY SECOND DEAL
Three separate properties in a package deal total of 11 bedrooms (11x$400 = $4400.00)
Ask for all three: $252,900
2 blks from University of Toledo in Toledo, Ohio
MY OFFER $186,000 for package
Brick Duplex 2 BR 1 Bath (up) 2 BR 1 Bath (down) 2.5 Car Garage
Brick 4 BR 1 Bath
Brick 3 BR 1 1/2 Bath
Updates to properties include: NEW windows, doors, electrical, pex plumbing, fresh paint, dishwashers, glass block windows, fixtures, all appliances stay, privacy fence, hot water heaters and more!!
Purchase Price = 74.40% $186,000
CASH COW = 2.37% $4400
March 22nd, 2010 at 12:59 AM
Hi Doug:
I found a deal; please take a look at the result of the analysis and see what
you think; I have a few more that I will try to submit tonight.
I am a small time investor “wanna be” having done no more than two
very good deals in the past 10 years; but very up on studies, workshop
and webinars. I’m ready to go. My name here is a pseudonym until I get
a deal on contract.
I listed my deal below and expect to try to get another before midnight.
Here is the deal:
Purchase Price $149,900.00
Renovation Costs $ 20,000.00 *Eyeball Estimation
After Repair Value $202,667.00
Gross Monthly Rent $ 1,100.00
65% Pass Congrats, you’ve got a winner here. Better move forward ASAP
Below 65% Pass
Cash Flow Cow Rule 5.50%
2% Pass
1.50% Pass
1.25%
1.00% Pass
NOTE:
The house is kind of “old fashioned” in style, though very sturdy in material;
but it could use renovations and the “eyeball” estimate is way below the cost I
arrived at here, which is $20,000.00
Thank you
Max
maxaff@hotmail.com
Tel Number: (941) 474-7756
March 22nd, 2010 at 12:59 AM
Hi Doug,
I am a real estate investor who has not done a deal and would very much like to be helped to do this one. I have listened to a lot of webinars but have not had the money to get started. When I came across this property I just had the feeling it is do able. Please help me.
I not sure the analyzer can give me an accurate percentage because my property is good condition.
The owner has had the property for 30 years. Apparently he has been managing it himself and keeping
up with the repairs. He has not been big on advertising so it is only 40% occuppied. He has owned it
free and clear and is just about getting ready to retire. He is financing 80% of the cost of $1,200,000.00
for 5 years interest only. The interest rate is negotiable I was told.
It is across from a college in Florida and breaks down as follows:
55 units
31 one bedrooms
4 two bedrooms
20 effiencies
$9015.00 monthly rents 40% occupied
$97,000.00 yearly
$275,000 yearly with 80% occupancy.
The cashflow calculator told me .97%
don’t put anymore money in the deal.
I really hope we can work together.
Ruth Gordon.
March 22nd, 2010 at 1:07 AM
Hi Doug:
***Note***
This property is located at
80 Audobon Ave, Clearwater, Fl
I found a deal; please take a look at the result of the analysis and see what
you think; I have a few more that I will try to submit tonight.
I am a small time investor “wanna be” having done no more than two
very good deals in the past 10 years; but very up on studies, workshop
and webinars. I’m ready to go. My name here is a pseudonym until I get
a deal on contract.
I listed my deal below and expect to try to get another before midnight.
Here is the deal:
Purchase Price $149,900.00
Renovation Costs $ 20,000.00 *Eyeball Estimation
After Repair Value $202,667.00
Gross Monthly Rent $ 1,100.00
65% Pass Congrats, you’ve got a winner here. Better move forward ASAP
Below 65% Pass
Cash Flow Cow Rule 5.50%
2% Pass
1.50% Pass
1.25%
1.00% Pass
NOTE:
The house is kind of “old fashioned” in style, though very sturdy in material;
but it could use renovations and the “eyeball” estimate is way below the cost I
arrived at here, which is $20,000.00
Thank you
Max
maxaff@hotmail.com
Tel Number: (941) 474-7756
March 22nd, 2010 at 1:38 AM
Purchase Price $15,500.00 (10000 obo plus 5500 taxes)
Renovation Costs $40,000.00
Cost Price $55,500.00
After Repair Value $88,333
Gross Monthly Rent $1,500.00
Cost To Value Ratio 62.83%
75% Pass
70% Pass
65% Pass
Below 65% Pass
Cash Flow Cow Rule 2.70%
2% Pass
1.50% Pass
1.25% Pass
1.00% Pass
Detroit Michigan, brick 2 family flat for sale on the eastside of Detroit. 4 bed total. It needs rehab. It does have new windows thruout including glass block in the basement. It needs both furnaces, hot water heaters, both entry and side doors, both kitchens and baths. $5500 in taxes are owed. Rehab needs to be completed in 6 months.
I am waiting for the seller to reply as to suitability for student housing, and possible rehab cost estimate.
$375 room rent arrived at from Craigslist as lower but not lowest rent for students in area.
I am 67 and live on social security and have bills and have grown children I would like to leave a way to make a decent living and be free, plus real estate has always fascinated me, especially creative financing and management. Real estate HAS to be the way to go: I will never forget creating 95,000 more in 5 minutes of negotiation, years ago. What a high!
This won’t win the contest but I wanted to put it in anyway because it’s still an example that there are deals out there and may be a decent investment. If not, the criticism would be beneficial.
March 22nd, 2010 at 1:56 AM
Hey Doug!
Arthur here. I’m 49, married, and all 3 of my “kids” will be in college this coming fall. We’ve bought and sold some Real Estate, but then we got kids and started a different (non R.E.) business. Currently we have one 3-unit apartment building.
Our credit is now shot due to two huge medical bills and the economy crushing our business of 17 years. So, now we’re trying to (or rather, MUST!) get the Real Estate going again quickly to save both our home and our 3 Unit Apartment building from foreclosure.
We never wanted to do Student Rentals, but your Lease seems to cover all the potential problems.
I looked quickly and didn’t find much on our “local” craigslist that worked way out here in the boonies, so I checked the MLS listings. Here is the 1st one:
It is only 6 miles from a small College (not sure of their housing situation) and 8 miles from both a Community College AND the biggest University in our state (BOTH of which do not have enough housing!). It is listed as a 5-Bedroom, 2-Bath. It WAS an illegal duplex until zoning found out. It is already “Handicap Accessible”. And, it also happens to be within walking distance to a public picnic area on a lake.
Purchase Price: $89,900
Renovation Cost: $10,000 (may be a little high)
Cost Price: $99,000
After Repair Value: $350,000 (Guess… a nearby 5-Bedroom ON the lake is priced higher)
Gross Monthly Rent: $2,500
Cost To Value Ratio: 28.54%
Cash Flow: 2.50%
HOWEVER – I SHOULD be able to add at least 3 more bedrooms upstairs (maybe more?). Adding 3 bedrooms would make:
Gross Monthly Rent: $4,000
Cash Flow: 4.00%
(and I have no idea what the After Repair Value would be on an 8-Bedroom house)
All the Rents and Cash Flow above are based on Single Occupancy per Bedroom. If half were Double Occupancy (and I know they are big enough) and I charged a little less per person for the doubles, the numbers would change to:
Gross Monthly Rent: $5,200
Cash Flow: 5.21%
And this is only the first one to come up on my MLS Search! So, how’d I do?
It’s now almost 10PM Eastern. I think I’ll call it a night… and have more fun Monday morning looking for more deals!
March 22nd, 2010 at 1:59 AM
Hi Doug -
I usually have plenty of time on the weekends; but wouldn’t you know I was extremely busy. Figures. I was so excited viewing your videos, I was hoping I’d have time to find something and enter the contest. I am a wannabe RE investor, although I do have a rental unit in CO that is a cash cow. I just decided to keep the place and rent to students after my daughter graduated in 1997. I’ve often thought of doing it again, just afraid to do on my own. So I understand what you are saying. I’m just in a place right now where I can’t afford to make a mistake, and no money in which to get started. So this would be a god send if I would win your contest.
In reading over the comments of others, there are many more desireable offers other than mine, but I’m submitting anyway. If I can, I’ll submit more later.
I live in OH, so I looked in OH; however, I know this can be done anywhere.
Location for unit is Oberlin
4 Bdrm 2 Bath
Finished Basement is a plus
Purchase Price $99,900.
No renovations
Prices of nearby sold homes $140,000.
Monthly Rent (low est.) $1600.
Cost to Value Ratio 71.36%
Cash Flow Cow Rule 1.60%
Thanks so much for giving us this opportunity. I look forward to working with you.
Good luck to everyone.
God Bless all,
Sandi
March 22nd, 2010 at 2:11 AM
Thank You
772-344-7606
March 22nd, 2010 at 2:12 AM
Hi Doug
My name is Chris. I have no experience in real estate. I’m very excited about this opportunity to get this deal funded. I’ve always wanted to invest in real estate. I work a ton of hours and has always wanted to obtain passive income. My deal is near Wayne State University in Detroit, MI.
Here is my deal:
Purchase price: $59900
Renovation Cost: $2000 (Bank Owned but doesn’t require much repair.)
After Repair Value: $200000
Gross Monthly Rent: $1500
Cost to Value Ratio: 30.95%
Newer Downtown Luxury Condo in Woodward Place.
3 bedroom, 1.5 baths
$500/month per bedroom
March 22nd, 2010 at 2:17 AM
I get nothong from craigs list when I put in a university.
March 22nd, 2010 at 2:38 AM
Hi Doug here is one,
3/2 1085 square ft.
Purchase Price – 39,000 + closing cost = $42,000
Renovation – $5,000
ARV – $100,000
Gross Rent – $850 – $1000
Cost to Value – 47%
Cash Flow Cow Rule – 1.81%
I like to hear more about the Funding Deal
Will P.
Florida
March 22nd, 2010 at 2:45 AM
Thanks, I am very excited about this.
March 22nd, 2010 at 2:55 AM
Re:
10000 obo + 5500 taxes
Purchase Price $15,500.00 (10000 obo plus 5500 taxes)
Renovation Costs $40,000.00
Cost Price $55,500.00
After Repair Value $88,333
Gross Monthly Rent $1,500.00
Cost To Value Ratio 62.83%
75% Pass
70% Pass
65% Pass
Below 65% Pass
Cash Flow Cow Rule 2.70%
2% Pass
1.50% Pass
1.25% Pass
1.00% Pass
Detroit Michigan, brick 2 family flat for sale on the eastside of Detroit. 4 bed total. It needs rehab. It does have new windows thruout including glass block in the basement. It needs both furnaces, hot water heaters, both entry and side doors, both kitchens and baths. $5500 in taxes are owed. Rehab needs to be completed in 6 months.
I am waiting for the seller to reply as to suitability for student housing, and possible rehab cost estimate.
Owner replied:
It is about 20 minutes from Wayne State University, 30 minutes from University of Michigan-Dearborn, 30 minutes from University f Detrot mercy and Marygrove Clege. The rehab I would estimate about $12,000.
Here is the revised deal analysis:
Purchase Price $15,500.00
Renovation Costs $12,000.00
Cost Price $27,500.00
After Repair Value $89,000.00
Gross Monthly Rent $1,500.00
Cost To Value Ratio 30.90%
75% Pass
70% Pass
65% Pass
Below 65% Pass
Cash Flow Cow Rule 5.45%
2% Pass
1.50% Pass
1.25% Pass
1.00% Pass
I find it hard to believe 12k could finish the rehab. Also it looks like it is too far from colleges.
But it might fly as a wholesale deal to someone.
New to real estate; age 67.
March 22nd, 2010 at 2:56 AM
Hey Doug,
Working to pick up properties while the gettn is good. I love your approach to the Student Housing market. With several very large universities in my own back yard I look forward to some exciting real estate investment opportunities.
Here are a couple of properties in the Tempe ASU area…hope to hear from you!
REO 3br /1.75ba Tempe Rental
Purchase $89000
Renovation $8000
ARV $130000
Gross Mos Rent $1500
Cost to Value Ratio 75%
Cash Flow Cow Rule 1.54% Pass
Call me at 602-697-2402
March 22nd, 2010 at 3:02 AM
John P.,
Try searching for college rehab, college or rehab on craigslist, and from there look for properties that are near colleges and/or universities. Sometimes if you don’t find anything there, then try out different city or state. I’m pretty sure you’ll find something there.
G’luck,
-David
March 22nd, 2010 at 3:09 AM
Thanks, Doug
Tampa, Fla.
School ___ USF 40,000 Plus Students
http://tampa.craigslist.org/hil/reb/1638528029.html
$300000 Cash Cow – 11 Units – 4 duplexes & 1 triplex .81 acres – 27k/unit (14202 N. 12th Street, Tampa FL)
Short Sale. Wow – 4 block duplexes and 1 triplex = 11 units
9 – 2br Units, 2 – 1br units
0.81 acre lot close to USF, Busch Gardens, Lake Magdalene, and local parks, restaurants and shopping.
Sale consists of 14202, 14204, 14206, 14208 & 14210 N 12th St in one package – at an astounding $27k/unit. Wonderful Property could produce almost $80k in income with effective property management. Run your #’s as this is a great cash flow property even with moderate vacancy, the return/cap rate can be fantastic for this cash cow!
Purchase Price $300,000.00 / $27,000.00/ Unit
Renovation Costs $44,000.00 / 4,000.00 /Unit guestestimate
Cost Price $344,000.00
After Repair Value $690,000.00 / 8 – $75,000.00, 1-90,000.00 / Unit
Gross Monthly Rent $6,8000.00 / 8-$700.00, 1-$1,200.00 Units
Cost To Value Ratio 0.498550725
Cash Flow Cow Rule 0.019767442
Congrats, you’ve got a winner here. Better move forward ASAP
I was a design/contractor/builder in the area since 1980’s. I have done the heavey lifting in this
business now I just want to push paper around. Gotten to old and tired for most of the B.S. in the business.
Thank You for this opportunity….. Doug
I ‘ll tune into the webinar!
March 22nd, 2010 at 3:13 AM
Hello again, Doug -
Here’s another one.
Located in College Hill
6 bdrm; 3 baths
Purchase Price $31,900
No apparent renovations
ARV $45,000
GMR $2,000
Cost to Value = 70.89%
Cash Cow = 6.27%
I am so excited to be doing this.
I finally have hope that I might be able to enjoy being a senior.
Thanks for all you are doing, Doug.
I appreciate it.
Sandi
440-478-1523
March 22nd, 2010 at 3:20 AM
S Broad St Philadelphia PA 19146
Single family
7 beds
4.0 bath
3,500 sqft
Seller’s Description:
S. Broad ATTN LARGE FAMILY 7br/4ba, Absolutely gorgeous, Everything all NEW, hwd flrs, c/a gross $5k/mo. or buy 3% down, net $3k/mo also rent 215.292.****(Any date or time associated with or mentioned in this listing may not reflect an upcoming date and may have already passed. Please reference the date the listing was updated as a baseline. When in doubt, please contact the agent/broker/seller directly.).
List Price: 5,000
Rehab cost: 0
After Repaired Value: 120,000 Lowest priced house of similar size on Realtor.com in same zip.
Gross Rent: 3,000 This figure is in the Seller’s Description.
Cost to value Ratio 4.17%
Cash flow Rule 60.00%
Hi Doug,
These numbers do seem incredible and maybe their was a type O on the purchase price of 5K. However their is no time to verify the numbers before the contest closes.
Doug I have been in real estate since 93 and in seventeen years ( Woo has it been that long ) I have rehabbed 15 houses and the net result is that I am living in a house with a 878.93 payment INTEREST ONLY and 50k in the bank to do my next deal.
Doug I see your cash flow is King and I see this STUDENT HOUSING PROGRAM will get my family were we want to be. That is 9K a month passive income…….
SEE YOU ON NEXT VIDEO
Craig
March 22nd, 2010 at 3:25 AM
Found this in Flint, MI. The numbers look great to me.
I’m not really new to investing but have no extra cash to do more right now. I want to get going faster and better
Purchase Price $10,000.00
Renovation Costs $3,500.00
Cost Price $13,500.00
After Repair Value $35,000.00
Gross Monthly Rent $1,500.00
Cost To Value Ratio 38.57%
75% Pass
70% Pass
65% Pass
Below 65% Pass
Cash Flow Cow Rule 11.11%
2% Pass
1.50% Pass
1.25% Pass
1.00% Pass
March 22nd, 2010 at 3:26 AM
hi my name is patricia i have been looking at realestate for at least 10 years but have not bought anything. I got this site from my father.
my possible deal;
purchase price $259,000
repair 7,500
rent 2,000
cost to value 7.12%
cashcow rule 5.99%
March 22nd, 2010 at 3:32 AM
Hey Doug,
Whew! I almost missed this. Thanks for the analyzer it is the BOMB! It saves a lot of work and uncertainty.
OK here’s the deal:
3 bedroom with possible 4th bedroom, one bathroom home for sale . good parts are it’s located right in the middle of a very nice small town within walking distance to a lot of businesses. It is near Waynesburg University and right next door to a middle school.
It has a huge kitchen with brand new hardwood floors, a first floor laundry room , a partial basement with a brand new hot water heater, a new steel front door, and a gas hot water heating system with a lot of new pipes . A side by side fridge, gas stove, dishwasher and security system is part of the deal.
Bad parts are the section of roof over the bathroom has a leak and will need to be patched along with some ceiling tiles in the interior that will need to be replaced, since they got ruined by the leak.
There also needs to be a new boiler for the heating system purchased and installed.
Purchase Price $35,000.00
Est. Renovation Costs $20000
Cost Price $55,000.00
After Repair Value $90,000.00 this is just a guess or should I say wish.
Gross Monthly Rent $2,150.00 = $600 for each Br and $350 for room in attic
Cost To Value Ratio 61.11%
Cash Flow Cow Rule Pass 3.91%
March 22nd, 2010 at 3:34 AM
DOUG!!!!!!!!! I JUST FOUND ANOTHER GREAT INVESTMENT NEAR THE UCF AREA!
This is an incredible 3/2 1500 sq. ft. home located near Dean off of Colonial. This is an easy rental or flip property located near Valencia and UCF. This house sits on a great lot near the Econ River. It features a huge master bedroom with laminate wood flooring in the other bedrooms. The kitchen only needs some minor work and the house does feature both inside and out AC units. The house was built in 1974 and in great condition with a roof that appears to be in good shape.
Rehab- This house is in great shape and all work is strictly minor cosmetic. The carpet in the master bedroom does need to be replaced. For a rental, the kitchen countertops and cabinets are in great shape. I would consider changing them for a flip. The kitchen does need appliances. There is a window that needs to be replaced in one bedroom. The rest is just paint and minor cleaning. THIS HOUSE IS CURRENTLY TAX ASSESSED FOR $110K!!!!!!!!
HERE ARE THE NUMBERS!!!
>PURCHASE PRICE- $67,000
>RENOVATION COSTS- $5,000 AT MOST
>AFTER REPAIR VALUE-100,000 OR MORE!
>GROSS MONTHLY RENT- $1,200
>COST TO VALUE RATIO-72.00%
>CASH FLOW COW RULE-1.67%
March 22nd, 2010 at 3:39 AM
This is by Mott, U of M,Flint, and Kettering U. The cost to value is not good but the cash flow is quite good. This is a really nice looking 3 bed with 2 car garage.
I started investing with a rental way back in 1976 which I used as a downoayment for a much better residence. My last good investment was a commercial building that I sold for a $110,000 profit in just 3 years holding and using it for a temporary business venture. Made more on that than on my JOB.!
Purchase Price $30,000.00
Renovation Costs $3,500.00
Cost Price $33,500.00
After Repair Value $45,000.00
Gross Monthly Rent $1,500.00
Cost To Value Ratio 74.44%
75% Pass
70% Fail
65% Fail
Below 65% Fail
Cash Flow Cow Rule 4.48%
2% Pass
1.50% Pass
1.25% Pass
1.00% Pass
March 22nd, 2010 at 3:45 AM
Hi Doug. Thank you for the opportunity. This house is located amid 4+ colleges in Flint, Michigan, where efforts are currently being taken to turn the one-time “Buick City” into a college town. More colleges and universites are bound to move into Flint. Currently, there is U of M, Kettering University, Baker College, and Mott Community College, as well as extensions for MSU, CMU, Davenport Univerity and many others.
Purchase Price: $18,000
Renovation Costs: 3,500
Cost Price: $21,500
After Repair Value: $45,000
Gross Monthly Income: $1500
Cost To Value Ratio 47.78%
75% Pass
70% Pass
65% Pass
Below 65% Pass
Cash Flow Cow Rule 6.98%
2% Pass
1.50% Pass
1.25% Pass
1.00% Pass
Thank you.
Tom
March 22nd, 2010 at 3:45 AM
PS. I hope the deal I just posted still counts because its only 11:43 eastern time. Thanks
March 22nd, 2010 at 3:47 AM
Hey Doug,
Love the videos!!
I have 3 deals pending but here is one I just found:
PURCHASE PRICE- $8,000
RENOVATION COSTS- $20,000
AFTER REPAIR VALUE-$50,000
GROSS MONTHLY RENT- $1,200 guess, could be more duplex 4 beds total
COST TO VALUE RATIO-56.00%
CASH FLOW COW RULE-4.29%
This one is in Indiana only 1.9 mi from IU
March 22nd, 2010 at 3:49 AM
Hello Doug,
Thanks for all the information you have shared with my husband and me. We are Johnny and Tiffany Robinson. I have been in Real Estate as an agent and Loan Originator since 2002 and my husband husband and I have owned investment properties since 2005. We were displaced after Hurricane Katrina and decided that we would get back into Real Estate on the investor side. We have no deals completed as of yet.
Here’s the deal we found. Please let us know what you think.
7 DUPLEXES IN OUR AREA. 14 TOTALS UNITS. GREAT OPPORTUNITY TO PURCHASE ENTIRE PORTFOLIO AT $200K BELOW APPRAISAL VALUE.
LOCATED NEAR FOOTBALL STADIUM, THEME PARKS, AREA UNIVERSITY, AND BASEBALL STADIUM.
ALL UNITS ARE 2 BEDROOMS, 1 BATH WITH ASSIGNED PARKING. OPPORTUNITY TO INCREASE CURRENT RENTS BY 20%. TENANTS PAY THEIR OWN UTILITIES, LAWN SERVICE AND SOME REPAIRS.
86% OCCUPANCY— CURRENT RENT ROLL IS $6,794 PER MONTH. LEASES ARE GOOD THRU 2010.
LOCATED NEAR SHOPS, SCHOOLS AND ENTERTAINMENT. GREAT RENTAL COMMUNITY!!!
The purchase price is $549,000. There are no repairs to be done. ARV is 749,000. GMR has the ability to be increased to $8152.80. This is the figure that makes the deal work. The cost to value ratio is 73.30%
and the cash cow rule is 1.49%.
This is the first contest I have ever enter. Thanks for the excitement and the chance to put some things into ACTION!!!
March 22nd, 2010 at 3:51 AM
This is my first deal!!! Signed the contract this week and need flip or funding soon! I will get more of these.
Six blocks from campus. This beauty just needs the basics to really sparkle. It’s five beds, 2.5 baths, 2542 sf, all-brick home with a full basement. Beautiful back yard with shed and covered patio. More info at NorthColoradoHomeSource.com. Good comps available. Address is 2621 19 Ave, Greeley, CO 80631.
Purchase price $75,500
Rehab costs $19,500
ARV = $129,500
Gross monthly rent $1295+
Cost to value ratio 73.36%
Cash Cow cash flow 1.36%
March 22nd, 2010 at 3:54 AM
Hi Doug, thanks for this great tool, really helps out a total newbie like me:-) Done no deals yet but I can assure you I know every “guru” out there and every sales pitch and program…lol…it’s all good though cause I just soak up all the info I can get and block out all the selling
Got to wait till I got the money to go all shoppaholic on the webinars…hehe. Anyway I got a deal in Olney Philadelphia that I believe to be a pretty good deal, and being a total newbie and green I can be wrong but I was told to “move forward ASAP” so, here you go:
SF: 1579, yearly tax: $1000, Assumed Mortgage
1 Purchase Price $65000?2 Renovation Costs $15000?Cost Price $80000
3 After Repair Value $140000
4 Gross Monthly Rent $1650
Cost To Value Ratio 57.14%
75% Pass?70% Pass?65% Pass?Below 65% Pass
Cash Flow Cow Rule 2.06%?2% Pass?1.50% Pass?1.25% Pass?1.00% Pass
March 22nd, 2010 at 3:54 AM
Good evening Doug.Came across your site through a referral from Mark Walters.Very informative individual.I have been researching various investment systems and niches.I am new to investing as I haven’t done a deal yet because our markets are quite different here in Canada and so is our banking system.I would love to get in on some deals in the U.s. and eventually move there.Come across deals all the time but don’t know where to go from there as I have no network established as yet although starting to join various investor web sites.Came across this deal tonight on a search.Five minutes from a law school and ten from another college in an area starved for off campus housing.Price reduced 50k to $300,000.This place is turnkey and I believe perfect for student housing.The cash cow rating is 5.33 so I think its a winner.Anyway I really enjoyed all the videos thus far and look forward to seeing what else you have in store.Hope to hear from ya soon.John-o
March 22nd, 2010 at 3:55 AM
Hi Doug:
My name is Bharat Shah, I am in real estate business since 2006. I live in Tampa,Florida. University of south florida campus is near where I live. This house is near USF. This looks very good deal.
10705 N 11th street, Tampa, Florida. Price: $40000
Bedrrooms:3 Bathrooms:2 Sq.Ft. 1300
Block Construction
Only need carpet and paint.
Repair:$2000
Reant : $1200
After Repair Value: $80000
Thank you very much
Bharat Shah
March 22nd, 2010 at 3:55 AM
Your contest inspired me to take action to see if there’s anything “doable” in my area. I am a senior and should be retired, but the sour economy/job loss put me behind the 8-ball. I have been studying real estate investing programs for a decade, and tried a lease option deal that almost got me in hot water (and the “guru” was unavailable for guidance). Student housing makes sense, and is less risky; that’s why I’m excited.
So here’s the best I found:
3BD, 1BA in Kansas City
1) Purchase Price – $25,000
2) Renovation Cost – none (pristine condition)
3) After Repair Value – $60,000 per comps
4) Gross Monthly Rent – $1500 (3 units x $500/mo.) on low end of scale
Cost to Value Ratio: 41.6%
Cash Cow Rule 6%
March 22nd, 2010 at 3:58 AM
Re Enter
Flint MI
Purchase Price $10,000.00
Renovation Costs $3,500.00
Cost Price $13,500.00
After Repair Value $35,000.00
Gross Monthly Rent $1,500.00
Cost To Value Ratio 38.57%
75% Pass
70% Pass
65% Pass
Below 65% Pass
Cash Flow Cow Rule 11.11%
2% Pass
1.50% Pass
1.25% Pass
1.00% Pass
and another
Purchase Price $30,000.00
Renovation Costs $3,500.00
Cost Price $33,500.00
After Repair Value $45,000.00
Gross Monthly Rent $1,500.00
Cost To Value Ratio 74.44%
75% Pass
70% Fail
65% Fail
Below 65% Fail
Cash Flow Cow Rule 4.48%
2% Pass
1.50% Pass
1.25% Pass
1.00% Pass
Help please!
March 22nd, 2010 at 3:58 AM
Hey Doug…Man, I may have missed the bus…still I think I grabbed the bumper as it moves forward. I have alot of catch up. Thanx for your efforts on our behalf. Getting to work now…..argh…three minutes until….!!!!Who WINS ????? WE ALL DO !!!!!
March 22nd, 2010 at 4:01 AM
Hey Doug -
This is fantastic stuff and really exciting! Thanks for sharing so much. And thanks for having a contest that went way beyond the boring “tell me why you want it” style. I had a blast today searching for THE property and I think I found it….in Cleveland
PP: $119,900
RC: $ 1,000 (if you want to put locks on the bedroom doors and find something else to fix
ARV $300,000 — Can you say Motivated Seller!
GMR $ 3300 (conservative)
CVR = 40.30%
CFCR = 2.73%
This place is a huge 5/2, 3500sf directly across the street from CWR and it certainly surpasses your 30% equity rule! There is also a parking space in the bldg’s garage that could be leased for additional income.
BTW, Kim here and I am currently living in the Sunshine State enjoying life and the beach and now searching for these great deals. I am an internet marketing consultant, and so far, have just dabbled in real estate. I am looking forward to your next video… funding this would be great fun!
p.s. I found 4 others that were winners and better move forward ASAP
March 22nd, 2010 at 4:01 AM
Brand new no experience
Excited to be able to pay down debt and provide and help others most of all
I’m an IT guy in Rogers, AR.
Cape Giraudeau, MO.
Purchase 17900
Renovation 15000
ARV 149900
Gross Rent 1600
CTVR 21.95%
CFCR 4.86%
March 22nd, 2010 at 4:05 AM
Doug, this house is near Colorado State University 2700 sq ft, 4 bd, 4 bath
cost $285000
rehab $10000
ARV $400000
rent $4000-5000
March 22nd, 2010 at 4:07 AM
Here is what I ultimately found for my 1st deal. Definitely learned from the experience of research and plugging in numbers to the formula.
Purchase Price $39,900.00
Rehab Costs $10,000.00
Cost Price $49,900.00
After Repair Value $80,000.00
Gross Monthly Rent $1,200.00
Cost To Value Ratio 62.38%
75% Pass
70% Pass
65% Pass
Below 65% Pass
Cash Flow Cow Rule 2.40%
2% Pass
1.50% Pass
1.25% Pass
1.00% Pass
2165 W Grange Ave, Philadelphia, PA–short walk/1min. drive from LaSalle University
March 22nd, 2010 at 4:14 AM
very cool stuff, here is my deal
4 unit building,
90000k
12000 rehab on the high side
=102k
160000 avr as per comps
1 – 3brm 450 per st x 3 = 1350
1 – 2brm 450 per st x 2 = 900
2 -1brm 550 per st x 2 = 1100
ctvr = 63.75 winner
I am head first after this deal. better with you than without you though.
gad bless you for sharing this information.
March 22nd, 2010 at 4:17 AM
Thanks for this opportunity/contest. I am also a teacher, have been for a long time. I have my own commercial driving school so no retirement. I know REAL wealth is in real estate! Always has been and always will be regardless of the economy. I’m 63 and need to retire from teaching so I can start making a real living with passive income.
Thanks again,
Nancy
March 22nd, 2010 at 4:24 AM
Hi Doug!
I am so grateful and want to say THANK YOU SO MUCH for sharing your about your Student Housing Program and your 60 Second Property Analyzer!!!!!!! The analyzer has been EXTREMELY helpful!!! THANK YOU!
I am a mother of two and grandmother of one (grandkids are AWESOME) from Colorado. I am secretary who is tired of debt and working for someone else. I have looked at real estate for years, but have just become active in February.
I can see I won’t be winning the contest, but at least I did find some deals, so all is not lost.
Here are the deals I found using Craigslist and the MLS (my rents are very conservative):
Deal #1 is a 5 bedroom 2 bath single residence
Purchase price $132,000 Cost to value ratio: 74.05%
Renovation costs $ 5,000 Cash flow cow rule: 1.64%
Cost price $137,000 Congrats you’ve got a winner here.
After repair value $185,000
Gross monthly rent $ 2,250
Deal #2 is a 5 bedroom 2 bath single residence
Purchase price $ 89,900 Cost to value ratio: 74.13%
Renovation costs $ 25,000 Cash flow cow rule: 1.96%
Cost price $114,900 Congrats you’ve got a winner here.
After repair value $155,000
Gross monthly rent $ 2,250
Deal #3 is a property with five units, 5 bedrooms with two studios
Purchase price $160,000 Cost to value ratio: 71.43%
Renovation costs $ 50,000 Cash flow cow rule: 1.31%
Cost price $210,000 Congrats you’ve got a winner here.
After repair value $294,000
Gross monthly rent $ 2,750
Deal #4 is a 3 bedroom 2 bath single residence
Purchase price $ 88,900 Cost to value ratio: 65.09%
Renovation costs $ 25,000 Cash flow cow rule: 1.32%
Cost price $113,900 Congrats you’ve got a winner here.
After repair value $175,000
Gross monthy rent $ 1,500
Deal #5 is different. It is a property that is super close a college, but is only a one bedroom and will not work, unless…I add two bedrooms. The location is just so great, I thought I’d see what would happen.
Purchase price $ 70,000 Cost to value ratio: 66.67%
Renovation costs $ 30,000 Cash flow cow rule: 1.50%
Cost price $100,000 Congrats you’ve got a winner here.
After repair value $150,000
Gross monthly rent $ 1,500
Thank you so much again, Doug, for all the AWESOME information!!!!!! I CAN’T WAIT FOR YOUR VIDEO ON GUARANTEED FUNDING!!!!!
Theresa
March 22nd, 2010 at 4:44 AM
Hi Doug!
I wrote about all my deals, but for whatever reason, it didn’t submit. So, I’ll just tell you the important stuff. THANK YOU!!!!!!!!!!!!!!!!!!!!!! Thank you for sharing your student housing program and 60 second property analyzer!!!! They are extremely valuable!!!!!
I am a secretary from Colorado who is tired of debt and working for someone else. I’ve looked at real estate for a long time, but just became active in February.
I have four deals with the result of “Congrats, you’ve got a winner here.” I have also have fifth deal, but it’s a little different. It is only a one bedroom and would not work, unless…I add two bedrooms. Details:
Purchase price $ 70,000
Renovation costs $ 30,000
Cost price $100,000
After repair value $150,000
Gross monthly rent $ 1,500
Cost to value ratio: 66.67%
Cash flow cow rule: 1.50%
Congrats, you’ve got a winner here.
Thank you so much again, Doug. I am so grateful for the information you’ve shared. I CAN’T WAIT FOR YOUR VIDEO ON GUARANTEED FUNDING!!!
Theresa
March 22nd, 2010 at 4:46 AM
Ok, here’s what I have for you at $28,000 in Ohio:
• 3 Bedroom
• 1.5 Bath
• 1785 square feet
• Large lot- 6,229 lot size
• Beautiful, all brick exterior
• Low property taxes
• 2 blocks from Boardman suburbs
• Near Mill Creek Park and less than 5 miles from Youngstown State University
• Appraised at $42,000
• New paint, carpets, newer hot water tank
• LEASED and rents for $400/mo.
• Tenants pay all utilities
RECENT COMPARABLES
Within the past year and two miles of the property.
Average Sales Price: $33,903
AND THIS ONE IN AKRON, WALKING DISTANCE TO AKRON UNIVERSITY FOR $36,000
HERE’S THE DETAILS:
Large home conveniently located near Akron General and Summa hospitals and Akron University.
Very clean, move in condition. NOT bank-owned.
Four bedrooms, LR, DR, two full baths. Two extra rooms in attic could be fixed up for office or play room. Enclosed front porch.
Fenced in back yard provides privacy.
Good rental area for investment income.
Also close to the brand new Mason school.
Both properties came up with CONGRATS YOU GOT A WINNER HERE! Using your tool for calculations. I have a few others to discuss with you, if you are available. Seems like you have a lot to sift through here though.
Thank you and best regards,
Catherine
March 22nd, 2010 at 4:49 AM
Hi Doug, You’re info is awsome. My brother graduated from Rutgers -New Brunswick,Nj and always said to me that student housing is big but never looked more into it. I’m a single father trying to keep my head above water. Im tired of struggling, living paycheck to paycheck. I have more debt than income coming in right now. I’m really stressed out with a young son counting on me. Need that change in my life.Please consider my deal.
Its a single family in New Brunswick on Comstock Street
5Bd/1Ba
AP-$129,900
Reps-$10000
Cost Price-$139,000
ARV-$238,000
Gross Month Rent-$2000
Malik (New Jersey)
March 22nd, 2010 at 4:57 AM
This is the One!
I call it “The WHITE HOUSE”.
8 BEDROOMS
205,000 asking price
240,000 Market Value
3,600 in rent min monthly
less than one mile from Major University.
What a great cash cow!
Thanks
Rodney in Cincinnati
March 22nd, 2010 at 5:05 AM
Hello,
thanks for the contest and info.
I have been investing in real estate for over 10 years but not student housing.
Here is my deal:
This is actually a bank owned (read…make an offer), vacant frat house near Clemson University in South Carolina.
17 units total. 16 units, each housing 2 students and a galley kitchen. 1 unit for manager.
Purchase Price: $825,000.00
Cost to Repair: Not sure but was built in 2004
ARV: Not Sure
Monthly Gross Income: $16,800.00 ($525.00 x 32 students)
Not able to determine cost to value ratio
Cash flow Cow Rule is 2.04% based on no repairs.
March 22nd, 2010 at 5:08 AM
Doug, I’m so very excited to be able to do this my deal was found in Cape Girardeau, MO. all from my computer. I’ve never even been there but I know Rush Limbaugh is from there and there is a University there called – Southeast a Missouri State University | One University Plaza | Cape Girardeau, Missouri 63701. I found a foreclosure on Realty Trac but not being member don’t have the exact address but you can pull it up. It has 4 BED 1 BATH and I estimated 15K for rehab or an additonal bath if needed. Never heard back from the Realtor. Comps for 4 BED 2 BATH in this area are at 149,900.
I’m a 46 year old IT guy with 2 teenagers and a 24 year old son and his 20 yo wife all living together. My son recently graduated and is now working on his Masters my Daughter In-Law in working on her Bachelors. My wife from Deleware is working on her Masters. I don’t have a degree but I work hard.
I would like to not have to work so hard and be able to go back to school to study Law and Real Estate but there’s no money left. LOL Anyways we all love each other and I’m happy if they are.
This was easy!
Also I found bigger ones near me at the University of Arkansas and it CASH FLOWS well. So much fun I did another one with my son just for kicks. Check It!
Fayetteville Arkansas – Glendale Apartments – 96 units For Sale at 1150000 (Ran the numbers on this with some guess work.
Purchase Price: 1,150,000
Renovations: 100,000
(Don’t think any are needed based on REVIEWS but I figured I could spend 1000 x 96 units and fix stuff or give T.V.s away or something)
ARV: 2,500,000 based on similar buildings –
For Sale Now
Mid/High-Rise $1,729,000
63,293 SF Bldg
63 Units
Past Sales
Garden Low Rise $3.5M
88 Units
Garden Low Rist $4.5M
138 Units
Gross Rent : $5,280 for 96 Units 1 Bedroom 1 Bath All Utilities at $550 per unit
CTVR: 50%
CFCR: 4.22%
This is so cool and exciting to see what the possibilites could be if I ever had more $ to work with.
If I remember you said you didn’t even own the properties you were getting about 8K a mo. from.
WOW!
Thanks so much for teaching us about this Doug & Alexis
Craig J
March 22nd, 2010 at 5:55 AM
Hey Doug, your contest shows how easy finding properties can be. I worked as a Realtor for 7 years & bought & sold 8 units and a 4-plex lot-Made some good money & haven’t lost yet. I did what you said & searched Craigs List & I found a 5 unit (2 smaller cottages & 1 larger building) property in Colorado Springs, Colorado in a nice older area near Colorado College:
1. Asking 160k
2. Renovation 30k (Guestimate-Has new roof, Plumbing, etc, investor ran out of money
3. ARV 294K (In 1999)-
4. Mo rents 2,750
5. Cost/value 64.63% (I think we could do better
March 22nd, 2010 at 5:58 AM
Hi Doug,
MST = 10:30 PM Sunday, here as I write now …. still good for the contest?
Working A LOT on this over the weekend.
No apparent local “deals” within a 200 mile radius (major western metro area – multiple cities/towns) …
BUT I have an idea about how there COULD be.
Much-needed solutions for viable co-creative expression of individuals here.
A lot of juicy progressive ideas here, but impeded by COL (cost of living)
so high, life force spent on paying bills … unless trust fund baby or …
I really appreciate your innovative teaching approach …. on-the-site videos, and hands-on approach, in assisting others to be “behaviorally competent”.
Also, that you incorporate the synergistic benefits of a group learning forum
(which doesn’t exclude those people who don’t have the ability to compensate you financially right now).
I have been drawn to and studying RE for (too) many years …. I obviously need help to launch.
My long time home biz now defunct.
I experienced a trauma at an early age, which I sense has affected my ability to launch.
(Last sibling deemed by “authorities” to be with her “own kind”. Died of abuse in institution, parents traumatized. So were we.)
I have a deep interest in co-creating truly affordable and human friendly and eco-friendly housing environments, which I would like to pursue ASAP.
However, I need to be able to pay the bills first.
Thanks, Gail Massey
PS DEAL Barebones: in another state (grew up in this town) … less than one block from campus & close to multiple amenities.
$12K purchase price
$20K Rehab cost
$60K repaired value
Rental gross (my) estimate $800 (could be more)
Got the Congrats via your Analyzer.
I have many more details that I can submit to this forum so we can all learn together with a real life example.
PS Do you recommend living close to investment?
PS I have a natural & over time developed sense of non-traditional Feng Shui, personal and larger, which I would like to have the opportunity to develop.
msgailmassey@gmail.com
March 22nd, 2010 at 6:16 AM
Hi, I’m pretty new to market and such. The free tool cannot work yet as have no Excel, but, here’s what I found that’s very nice:
2/1 house w/large convertible upstairs, 1/1 separate cottage w/att garage, large fenced yard w/organic garden, 13 fruit trees, geared to self-sust, 1mi to college, parks, etc, beautiful wood floors and cabinets, fp, exclt shape and long term investment. We are a bit spendy up here, but this is very nice- I’d like living in!
Purchase Price: $349,000
Renovation : $ 5,000
After Renov : $500,000
Gross Rents : $ 2,000
March 22nd, 2010 at 6:27 AM
Purchase price $550, 000
Renovation costs 10,000 (there were no pictures for the inside Tried to call realtor but it was after hours)
ARV $596,000 (this was the county appraisal for 2008)
Gross monthly rent: $4701
Cost to value ratio 96.93%
What should I do now? Don’t spend any more time on this deal
I went through about 10 apartment complexes in Utah and did not find one that said I should move forward, but I tried.
I chose Provo Utah because it is in an emerging market Maybe that is why I had trouble getting them to cash flow….
I am an investor and I am excited about finding out how I can fund apartment deals Thanks, Doug for your help
March 22nd, 2010 at 6:44 AM
Re:
Detroit Michigan, brick 2 family flat for sale on the eastside of Detroit. 4 bed total. It needs rehab. It does have new windows thruout including glass block in the basement. It needs both furnaces, hot water heaters, both entry and side doors, both kitchens and baths. $5500 in taxes are owed. Rehab needs to be completed in 6 months.
Further research after seller replied, below, shows community college 3.2 miles, law school 10 miles.
Seller replied as to suitability for student housing, and possible rehab cost estimate:
It is about 20 minutes from Wayne State University, 30 minutes from University of Michigan-Dearborn, 30 minutes from University f Detrot mercy and Marygrove Clege. The rehab I would estimate about $12,000.
Here is the revised deal analysis:
Purchase Price $15,500.00
Renovation Costs $12,000.00
Cost Price $27,500.00
After Repair Value $89,000.00 (home slightly smaller sold for 120k but average was 89k mostly 3 bed single homes approx 1300-1500…this home is 2040 but is a 2 flat)
Gross Monthly Rent $1,500.00 based on 375 for each of 4 bedrooms.
Cost To Value Ratio 30.90%
75% Pass
70% Pass
65% Pass
Below 65% Pass
Cash Flow Cow Rule 5.45%
2% Pass
1.50% Pass
1.25% Pass
1.00% Pass
I find it hard to believe 12k could finish the rehab. Also it looks like it is too far from colleges.
But it might fly as a wholesale deal to someone.
New to real estate; age 67.
March 22nd, 2010 at 6:47 AM
Hi Doug. I live in Portland, Oregon. I have been investing for about three years now. I have two investment properties and my own home. My investment properties are in Richland, WA and in FL both near colleges. I have hard a hard time flipping properties but I need to learn how to do this so I can continue buying homes too. I need CASH flow right now. I loved your cash flow tool and I will be adding it to my tool belt. I will also change my marketing methods to include college area’s. I found a HUD deal that works in your cash flow tool.
1) Purchase Price $62,000.00
2) Renovation Costs $20,000.00
3) Cost Price $82,000.00
4) After Repair Value $140,000.00
5) Gross Month Rent $1200.00
6)CTVR 58.57%
7) CFCR 1.46%
Thanks for reminding me why I bought my rentals near colleges. As a new investor, it is nice to know that I made a good investment!
Thanks Laura
March 22nd, 2010 at 2:00 PM
Addendum to above entry: (Over looked including this vital info!)
Deal is located less than a block from Buff State in Buffalo, NY. on residential street.
4 BD 1 BA. 2 story. My guess on the rent was too low. New guess is $400 per room for 4 BD
Also has office/den. Gross monthly rent at $1600.
New guess based on rental comps.
Cost to Value Ratio: 53.33%
Cash Flow Cow Rule: 5%
Already indicated $12000 asking price for quick sale.
$20,000 rehab cost indicated by seller.
$60,000 post rehab value.
March 22nd, 2010 at 2:17 PM
Good Morning Doug,
After sleeping on the deal my husband and I submitted last night, I had a revelation. There are 14 units included in that deal which are 7 two bedroom duplexes. If we were to charge just $400.00/bedroom, the GMR would be $11,200.00/mo. Although my cost to value ratio remains 73.30%, the cash cow rule is now 2.04%. Please let me know what you think.
March 22nd, 2010 at 7:43 PM
This all sounds great but at this time of year (school year just about over) is it prudent to get into a deal like this?
March 22nd, 2010 at 8:38 PM
Dude,
3733 N 16th Street Philadelphia
Temple Medical Complex and Erie Transportation Complex. This deal is in your back yard. I own it. I purchased for back taxes and a few other liens. $18,000 acquisition. I got $100,000 in rehab cost to get a legally zoned triplex. All units are 2 bedrooms. This deal is perfect to show your students all the details involved in this business. I am willing to let you come in and teach your students and film webinars from the property while it is under construction. I need you to use your resources to get the funding. Again, I already own the property out right. NO MORTGAGES. I don’t care about the contest but I do feel that I can be an asset to your organization. I am a licensed General Contractor with the City of Philadelphia. I have over 20 years of rehab experience and have a very keen sense of this market.
Acquisition: $18,000
Rehab: $100,000
Total buildout: $118,000
ARV: $225,000
Gross Rent $3,000
CTVR: 52.24%
CFCR: 2.5%
March 22nd, 2010 at 11:25 PM
Doug,
I am from Petersburg, Virginia and I have been involved in real estate investing for several years. Your Property Analyzer really helped me to determine if I had a deal or not. My deal is an apartment building that consist of 4 units, each consisting of 2 bedrooms and 1 bathroom.
1. Purchase Price $179,000.00
2. Renovation Cost $0
3. Total Cost Price $179,000
4. After Repair Value $295,000
5.Gross Monthly Rent $3,000
6. CTVR 58.57%
7. CFCR 1.68%
The seller indicated that the rents can be increased because he is not charging his tenants the current market rate for their rent. If the rents are increased, the cost to value ratio will increase.
March 23rd, 2010 at 1:12 AM
Hi Doug,
I saw the contest a little late after being tied up all weekend and I have been looking for deals since late afternoon. I have one that is close, but it will take figuring out why the cap rate is 10 and seeing how I could capitalize by either getting the rents up or costs down. Also, I want to go back to the list of 60 near Univ of Iowa campus landlords I developed a couple years ago and see if I can negotiate better deals with these guys than it looked like I could do pre-economic turndown.
Your program is perfect for my market in Iowa City (Iowa City), and for close by areas of Cedar Rapids (Coe College and Kirkwood College) and Des Moines (Drake University), and I already have the experience and some training to get a quick start. I have been a real estate investor since 2004 with 2 rental properties in Iowa City renting to both student market and others (and you can guess which I prefer!). I also had a real estate license 2006-8 but decided I am much more oriented to investing and would rather have someone else do my real estate marketing.
2 years ago when I sent a letter to 60 Iowa City landlords who are getting to the retirement age I got an immediate response from 18. Of these, most were not sufficiently motivated to sell at wholesale, but now may be a different story, plus there may be others who are more recent owners who are facing difficulty refinancing I can tap. I am also familiar with markets in SW Florida and can mine those areas which have been more impacted by the economy than my home area. I bring both a wealth of experience and a lot of persistence to your program. You provide what has always been the missing ingredient for me in the commercial marketplace– funding.
With that in mind, I may find that I can’t afford to join your program at this point without a scholarship, so I do hope you will consider reopening to more scholarship students. Reversals in the SW Florida market took almost all of our retirement income and we are having to restart from nothing at age 62. I can pay a small monthly fee, but find it hard to budget for major training programs. I am extremely motivated to succeed despite this. I really have no option if I am ever to build a residual income base again sufficient to retire.
March 23rd, 2010 at 1:47 AM
Good thinking Doug. You have found a great way to find bird dogs all over the country! Man, great idea!
March 23rd, 2010 at 11:57 PM
Doug,
Found a two story, single family, 3br, 2ba about 8 minutes from Hampton University.
Purchase Price: $39,900
Renovation Costs: 0
Cost: $39,900
Valued at: $81,800
Gross Monthly Rent: $900
CTVR: 54.89%
CFCR: 2%
Can we do this or what? LET’S GO!!!!
March 24th, 2010 at 3:14 AM
Hello Doug,
Thanks for the opportunity!
I know what it is like to be a student from out of town with no place to live on campus. in response to the contest, I may have found two ideal situations… The city and state is Lansing, Michigan; home to Michigan State and Cooley Law School. Deal 1 is 1.2 miles from Law school. 3 bedroom 1 bath ready to roll. Using control data purchase price 29,500, estimated repair 5,000 total value 34,500. After repair value approx 50,000.00 total rental 1250.00. based on three students ?CASH FLOW COW RULE 3.62% good deal
Deal #2 ideal location 3 bedroom 2 bath home 59,900.00 total rehab. 0 cost to repair. after repair value approx. 80,000 rental value 1500.00 based on three students CASH FLOW COW RULE 2.50% good deal.
Rental value is good; considering One bedroom garden apts. run 650.00 to 850.00 per month for one student.
Not involved in real estate. Law student looking to make back education investment. Oh by the way, I live in Philadelphia, and I attended grad school at LaSalle…nice neighborhood.
March 24th, 2010 at 3:15 AM
Doug,
You didn’t say WHICH Sunday the contest would end. I just found out about you, your program and the contest this afternoon from Cory Boatwright’s video. Judging from the date of your post, I assume we are talking about 3/21, but I’m just checking because you could be talking about after the webinar which would be 3/28. Please clarify.
March 24th, 2010 at 8:17 PM
Hello Doug, we have over 33 years of FULL time real estate experience. We have several deals on the board would like to discuss. Please call us in person at 818.949.8424. We believe this would be very beneficial for both of our companies. Thank you & regards!!!
March 24th, 2010 at 8:31 PM
Hey Doug,
I’m a part-time investor with one property earning $300/mth profit (big deal). This student housing idea sounds great, and I would love the opportunity to get that one hour consultation from you. I got the contest information late, but I hope I’m not too late to win.
With that being said I found a newly renovated 3 bedroom house, near a new medical school, hospitals (full of resident students) and a college campus!
Purchase Price: $77,000
Renovation Cost: $0
After Repair Value: $107,317.00
Cost to Value Ratio: 71.75%
Cash Flow Cow Rule: 1.56%
March 27th, 2010 at 1:08 AM
Folks. Let me make this short and sweet. This is a No brainer
March 28th, 2010 at 7:09 AM
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March 29th, 2010 at 7:27 AM
DUPLEX less than 2 miles from a private university, EACH SIDE has 3 BD/1.5 BA totalling 1277 sq ft for HOUSE TOTAL of 2554 sq ft of housing. Across street comp is $229,900
Purchase Price: $37,500
Renovation Cost: $28,000
After repair value: $229,900
Cost to Value Ratio: 28.49%
Cash Flow Cow Rule: 2.14%
My wife and I are leaving our industries as a RN in UR/QM/Compliance and a Board Certified Teaching Chaplain to generate a higher income for retirement and philanthropy. We are looking for both cash and residual incomes. We have been landlords in recent years. We are excited that you have taken turned the arm pit of RE investing and turned it into a money pit! Congratulations on your ingenuity!! You represent our heritage in America so we salute you! We look forward to working with you in the near future.