Rental in Tempe (ASU) - Good Idea?

Question

Hello,

Other than the purchase of the single family dwelling my family and I live in, I’m beginning to consider a first investment property. My son will be attending ASU, beginning in 2024. While he will be living in a dorm for his freshman year, I’m wondering if it makes sense to purchase a rental property near campus, that 1) he can live in, and 2) I can rent 1-2 additional rooms.

I’m not sure if this is a good strategy (purchasing an investment property that coincides with my son’s school arrangement).

Thank you for any insight you can offer.

Brandon

Mason Weiss · Answer

Do it, don't overthink it. Your son realistically is the best tenant you can ever have and he can vet your other tenants. This is the best way to secure your first property, my guess is renting by the room saves students money compared to the cost of living in a dorm.

Josh Young · Answer

@Brandon Seider

That is a great idea.  You can teach your son about real estate investing first hand, and he will need a place to live anyways so you might as well own it, you can either sell it after he graduates or keep it as a rental. Tempe (ASU) and the surrounding area has seen tremendous growth and will continue to be in high demand. He will be able to make friends and recruit your tenants while he is in the dorms. College kids can make great tenants, people get nervous thinking they all throw parties and trash properties, but that's just not reality and their parents usually pay their rent.  I'm a rental property investor and a real estate agent, so if you want some help analyzing deals I'd be happy to help.

Tim Bee · Answer

Tempe is a great place to buy a rental.  Mostly good weather. Not high crime and you can find properties that meet the 1% rule!

Eliott Elias · Answer

Holding a rental anywhere as long as you have equity, and the property cash flows is a good idea.

Josh Young · Answer

@Brandon Seider you can actually buy the property as a primary residence as well, so it can be 5% down and lowest available interest rate. This is possible with a program called a family opportunity loan, your lender should know about the program, if not then send me a massage and I'll give the contact info for a lender that I use.

Brandon Seider · Answer

Thank you for the quick responses and encouragement. I’m happy to see that most people believe this is a good and viable strategy to pursue.

Tom Nguyen · Answer

Do it.  I talked to my son about the same topic 4 years ago when he was still a junior in HS.  I wish I have bought back then.  He just completed his 2nd year.  The cost to rent one room close to ASU before utility/parking/etc. is over $1,000/m.  My daughter is a freshman in the fall.  I finally closed on a south Tempe house last month.

Rental in Tempe (ASU) - Good Idea?

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