In order to maximize the return on investment of the $150,000 in initial capitalization I have available to make my real estate purchases from the inventory of distressed properties available in my area of target market, I would first partner with a real estate professional, a Realtor(R) to take full advantage of the real estate database resources that would allow me to perform complete due diligence before making any purchasing decisions. I would like to focus my search in the immediate vicinity of the University of Central Florida, Oviedo Florida metropolitan area, because there are numerous properties available in this area that have very high renovation and rehabilitation potential and can be easily converted from a role single-family residential to a property with multiple roommates. Due to the ongoing surplus of inventory in the national real estate market in general, and in the Oviedo/UCF area market in particular, there are many affordable properties available for purchase by qualified buyers with sufficient capitalization or credit adequately solid. Since the assumption of this exercise is that there are funds available immediately, it is assumed that a substantial down payment can be made on the property and that available credit can be used given a modest but still acceptable FICA score of between 700 and 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 about $350 a month. Adding taxes and insurance costs to the P&I would bring the monthly payments to around $700. Most distressed properties… halfway through… have an application fee for all prospective tenants. The going rate for a private bedroom with private bathroom in the UCF area is between $500 and $800 per month. Residents are expected to provide their own utilities, television and Internet access. Assuming a 75% employment rate at the lower end of this range, this would produce a gross monthly income of $1500. This represents a monthly profit of approximately $750. Perhaps considering UCF's phenomenal growth and projected population increase student through undergraduate enrollments, the 75% figure is almost certainly an underestimate rather than an overestimate. Be that as it may, it should still be possible to make a minimum of $8400 per year in rental income from this property. If one of the units were owner occupied, that would reduce my income stream, but also my living expenses.