In order to maximize the return on investment of the $150,000 of initial capitalization that I have available to make my real estate purchases from the inventory of distressed properties available in my area of target market, I would like to first partner with a real estate professional, a Realtor(R) in order to fully utilize the real estate database resources that would allow me to perform complete due diligence before make any purchasing decision. I would focus my search in the immediate area of ​​the University of Central Florida, the greater Oviedo Florida metropolitan area, as there are many properties available in this area that have very high potential for renovation and rehabilitation and can be easily converted from a single family residential role. to a multi-bedroom property. Due to the continued excess inventory in the national real estate market in general, and in the Oviedo/UCF region market in particular, there are many well-priced properties available for purchase by qualified buyers with either sufficient capitalization or sufficiently solid credit. Since the assumption of this exercise is that there are funds available immediately, it is assumed that a substantial down payment could be placed on the property and available credit could be used given a modest but still acceptable FICA score in the range 700 to 750. Assuming a four-bedroom, three-bathroom home with a purchase price of $150,000 and a down payment of $75,000, that would leave one with a $75,000 mortgage at about 4%. and monthly payments of approximately $350 per month. Adding taxes and insurance costs to P&I would bring monthly payments to about $700. Most distressed properties...... middle of paper...... incurring application fees for all potential tenants. The going rate for a private room with private bathroom in the UCF area is approximately $500 to $800 per month. Residents should provide their own utilities, television and internet access. Assuming a 75% occupancy rate at the lower end of this range, this would produce a gross monthly income of $1,500. This represents a monthly profit of approximately $750. Given UCF's phenomenal growth and projected increase in student population via undergraduate enrollment, the 75% figure almost certainly represents an underestimate rather than an overestimate. Regardless, it should still be possible to make a minimum of $8,400 per year in rental income with this property. If one of the units were owner occupied, it would reduce the income stream, but also my living expenses..