Buying new construction for Rental Property?

Question

Steve Potash · Answer

If you're knowledgeable with student rentals, you can normally make more money than a standard rental.  But there are huge differences, so you want to make sure you completely understand them before investing.  New construction is a plus, because everyone likes new.  The closer you are to campus, the more marketable it is.  A 1 to 1 parity between bedrooms and baths is a plus.   Personally, I don't like having the electric in my name... because students are not conservative.   Some college towns have 12 month leases others have 9 month leases, so I'm not sure what yours is... plus you didn't mention how much you're putting down, so it's hard to tell if that's a decent cash flow number.    I've been investing in student rentals for 24 years.   If I was going to invest in a new town, it would take me approximately 1 month to learn everything about that specific market before I feel comfortable investing.  I'm just mentioning this incase you are new, so that you take the time to learn about student rentals and the specific needs of the students in your specific town, because I've seen where there might be several properties all with the same numbers and within a few blocks of each other, but only one is a good investment....but someone new to student rentals wouldn't realize which one is the good investment.

Chris Eaker · Answer

Student housing is a great, lucrative market. I have one 3-br student condo and it's great. A duplex would be even better. Sounds like a great deal if your numbers are right.