Best college students to rent out too?

[Dana Gaglione]

Hello,

I am interested in doing out of state real estate investing, mainly near colleges. While there are so risks, I think it is a good jumping off point since I can rent out per room rather than per unit and there will always be a student who needs a place to stay. Reading, it seems like the major con is potential property destruction due to parties. I started to think about potential majors that require a lot of study time. Some potential majors would be mainly medical; like nurse, doctors and veterinarian. Any town suggestions, college, or major suggestions would be great. Please share your experiences with renting to college students! Anything will be helpful as I've only had experience with house hacking.   

  

[Jim Rivell]

Hey Dana, we own 2 college rentals near my alma matter outside of Philadelphia. The definite pro is higher CoC return and cash flow since you can rent by the room and typically get a nice premium on the market rates for non-students. Con would be the fact that it is students. Yearly turnover with usually some damage, dealing with kids, dealing with kids' parents, etc. I've also seen some landlords have a separate lease for rent by room so sometimes you may have 3-4 leas per property, some include parent cosigners so that's either A more leases or B more signatures per lease which is more work on you or a PM. Hard to hit on every experience we have seen so far. Let me know if you have any more specific questions and I can try to help!