UCF Off Campus Housing
UCF Off Campus Housing offers a few different options. The obvious one is a the many apartment complexes surrounding campus such as Sterling, Boardwalk, Arden Villas, Jefferson Lofts, and the list continues. Most of these follow the same structure of four individually leased tenants, each with their own bedroom and bathroom paying anywhere between $475-700+ per month depending on the luxurious lifestyle you want. This is a option that the majority of students take, because it requires the least amount of thought a effort. The opposite side of the coin is that you are missing a great opportunity to capitalize on your housing and turn it into a profitable experience.
While attending UCF between 2001 and 2005, I began my first year by living in Lake Claire UCF on-campus housing then my second year I moved to Boardwalk Apartments off-campus housing. Here is where the story turned, so that year I realized that my housing provider was make $2000 per month off myself and my three other roomates so I decided to consider a house. At first this seemed like too much work, but with some minor research I was able to get more details. So I sat down with my parents and had the talk about how I think we should buy a house, and I broke down the numbers for them. I will go more into the numbers in just a moment; but to simplify if we get a four bedroom home and rent out three rooms, I can live for “Free“. This was my Dad’s favorite word! Mind you, he had been shelling out $6000 the previous two years for my housing and “Free” was enough to get his interest. “Not only can I live for in better UCF Off Campus Housing for free, we can use this to get started investing in real estate”, I told him. And so it began.
Here are the numbers.
If we buy homes that are around $150,000, putting down a 20 percent down payment ($30k) which gives us a mortgage of around $650-750 per month. Lower down payment options are available.
Factor in $ 200 per month for property taxes
Factor in $ 100 per month for insurance
Which brings our expenses to between $ 950-1050 per month.
Front End Return
I rent out each of the rooms for $425-500 per month, we are grossing between $1275-1500 per month. Using the high expense number, and the low gross number you are still profiting $225 per month or $2700 per year. Oh yeah, and the $6000 savings that we didn’t have to pay for me! Did I also mention, tax benefits. This is not tax or legal advice, but property taxes and interest on home loans are deductible. Plus, if you use depreciation you can knock off even more.
Now what does this look like if I weren’t living there are we could rent all four rooms???
Well, I typically will do this and rent these homes to a whole group for somewhere between $1500-1600 per month so I can have a ton of groups to choose from and pick the most fitting group. Most fitting, being the ones who mom and dad pay their rent and don’t party too much. Which give me a return of between $ 550-650 per month or around 20-25% on my $30k down payment.
A Hedge Against The Rising Cost Of Living…….
Which is great, and it also acts as a hedge against inflation because if inflation occurs I get to rent the houses for more while still keeping the same fixed payment.
But the really prize is the back end, on average real estate doubles about once every 10 years. So let’s say 10 years from now the $150,000 house I bought is now worth $300,000. My $30,000 down payment, has now recognized a 500% return.
To recap my UCF Off Campus Housing investment on the front end makes an average of 20%, on the back end I align myself to make an estimated 500% totaling an estimated 700% in 10 years. Why anyone invest in the stock market, is beyond me. If Warren Buffet, gets 700% in the next ten years I will be shocked.