Cons to Investing in a College Town?

Question

I have not bought property yet and I am looking to find my niche for where I want to invest. I am currently a college student and realizing that the apartments/houses that my friends live in are not super nice and we are content with paying over $500/month each. I very rarely need to call my landlord and there is always demand for college town living due to school. I do understand there is risk in kids messing the property up but wanted to know others opinions/knowledge on the cons of college town investing. Thanks so much everyone!

Bruce Woodruff · Answer

@Scott Mac You forgot to mention immaturity......

Cole Maurer · Answer

Hey Tyler,

I would say your biggest risks are lack of care and maintenance on the property and potential short or late rents.

College towns tend to party as we all know. That can lead to a lot of issues regarding damage to the home.

Short or late rents, as young adults will do, they move in with new spouses and friends, things happen during their time, fights and breakups. That could lead to people moving out and the ones left not being able to cover all the rent.

I would focus on properties in the area that would target more of the staff, workers, and hospitality employees. These people may not be attending school and taking part in extracurricular activities.

I still think student housing is a worthwhile investment, a lot of these young adults do come from well-off families and should help you get a great stable return. If you wanted to buy homes for the actual students to rent, I would just ensure that you add extra padding to your cash flow requirements to cover unexpected issues.

Best of luck to you!

Nathan Gesner · Answer

They have the ability to make more money than a standard rental with a single occupant or family renting them, but it comes with additional difficulties. You need to investigate the pros/cons and decide if it's the right vehicle for your personality and goals.

Scott Mac · Answer

Animal House!

Oh the endless drama's.

Immaturity controls your cash flow.

Endless swapping of renters--no long termers.

Immaturity

Oh did I mention Immaturity

(and the Eddie Haskles)

I prefer a clean hardworking thrifty renter who will stay long term.

Eddie Haskle: https://www.youtube.com/watch?v=mndyyvDfhMU

Bruce Woodruff · Answer

Properties being run down way more than a typical house. Oh, and the parties....Easier ways to make money IMHO.....

Cons to Investing in a College Town?

Cons to Investing in a College Town?

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