So the podcast on student housing purchasing really interests me. I'm wondering if anyone has any advice on the market in Michigan for this type of investing. It would seem the Ypsilanti, Mt. Pleasant area would be good options for this.
Hey Jeremy Mitchell I here in the Kalamazoo
Hey Jeremy Mitchell I here in the Kalamazoo market. We're considered "college town", Home of Western Michigan University. A lot of students homes in this area as well...
@Jeremy Mitchell student housing can be great but it is completely different from your average rental. Students tend to take less care of your property and in my experience let issues go until they become a more expensive fix. My recommendation is to make more frequent scheduled visits to view the property and catch problems early. The plus side is that they are the least needy of all my rentals.
I invest in MSU and the taxes in East Lansing are much higher as well (vs non student). I cannot speak for other michigan markets but you will want to verify tax rates before you buy.
@Jeffrey Townsend I lived there many years ago. Is the student housing market holding up well there? I lived in the Knollwood neighborhood in the late 90's.
@Jon W. that's a great tip about tax rates. I'll definitely factor that in. I liked the suggestion from the podcast about sending in a cleaning lady as kind of your eyes on the ground.
I'm close to Arizona State University and was considering student housing, as well. One thing that worries me is all the new apt building going on in the area.
@Krista Walker, we work with a number of investors who have rental properties surrounding the UofA. Despite the "wow" factor of the new apartments and all of the amenities they offer, rental housing (existing) is still much more attractive because it's more affordable. If you're the landlady on these separate properties, you have a much larger pool of potential tenants from which to draw because there's a much higher number of students living ON a budget than on mom and dad's money.
Jeremy Mitchell yuup, KnollWood on the west side. You familiar with the area we call "student ghetto"? Near downtown. Many duplex's, triplexes, also SFH with mostly students renting. Western is growing as a campus. We just built the Western Michigan Homer Stryker M.D. School Of Medicine Campus in 2014, 68 Million Dollar renovation . Attracts more students to the area.
Kalamazoo is a great market for student rentals. Like any other type of rental, your future likelihood of issues directly depends on level of tenant screening you do, and whether you require parent(s) to co-sign.
Parent co-signers eliminates almost all issues... One call to them at the first sniff of any issues and the kids usually have an attitude (and cleanliness) adjustment.
@Jeffrey Townsend I'm quite familiar with the "student ghetto." Those definitely bring back some memories. I'm sure that area has seen an influx of people with all the economic development going on.