I'm new to the BP community and am ready to get started with my first rental investment property. I've decided student rentals in a college town would be a good place to start small and get my feet wet. I know the market well and have identified a few solid options, but my only concern right now is timing.
With classes starting in 22 days (Aug. 22), I'm worried that off-campus housing has largely been secured already for the most part for the upcoming school year. I'd also imagine it would be much tougher to rent off-campus housing in the middle of a school year.
Does anyone have any experience/advice/input on timing re: student rentals?
@Joshua Heller you're spot on. I wouldn't buy anything now with the intent of trying to get it rented before the school year (or even spring semester).
Student rentals are HIGHLY time sensitive in my market. The "rental value" of a property outside of a summer to summer lease is somewhere around 50% in my estimation. I'd liken the seasonality of it to a vacation rental.
This post may be of use to you: Nearing 1,000 Students
@Will Gaston awesome man, I figured. Thanks for the response and verification. Will check out that link!
What market? You might consider Airbnb'ing in the interim.
College rentals are a flipping racket.... in a good way lol... I closed in my 6th college rental and my situation was this:
Deals are competitive near college campus’ because of the nutty rents you can get for providing good housing to students. I got this from direct marketing.... there’s 0 on the market.... I know it’ll cash flow near 1.8k and be a great property... but I’m going to have to eat the mortgage until June or August...when I can get a new group in... it’s a 7 bedroom house... if you have a group of seven people, you ain’t looking for housing until June or July... if you find a multi unit of 1-1, possibly 2-1, it may be easier to find students mid year.... it all depends on your campus... mine is a large school 45k+ with a large commuter population...so it’s very feasible for a fresh or jr to be living at home In March and decide I want to live near campus/or I now have enough $ saved up to move near campus. But, like where I went to college, Miami University, a rural college town with a population of 5k in summer and 30k during school year, its unlikely you’ll be able to find mid year tenants as easily......
But if the deal is going to be killer and it’s a competitive area, it’s going to be well worth it in 4/8mo..just consider it an expense... if you can’t justify eating the mortgage for 6-12months is it really that good of deal anyway ?
Cheers and best of luck