Rapidly growing small town, college housing?

7 Replies

Hey guys,

I just finished reading Rich Dad Poor Dad today and really enjoyed the book, but now I'm ready to start taking action.  I live in a relatively small town in central Texas with a population somewhere around 21,000.  We've got Walmarts, movie theaters, a bowling alley, a lake, tons of restaurants, etc.  We are an hour from Austin, and 2-3 hours from Dallas, San Antonio and Houston.  We've got a University in town and a ton of new businesses and housing developments are going up left and right.  New schools are being built, including a 2nd high school.  It seems like a pretty great time to dive on in and get started.

I had originally wanted to house hack a multifamily, but there aren't any here.  At least none that are for sale.  The ones that are here are either brand new or 20 miles away in a high crime area.

After reading that book, I've started thinking about other ways to invest and am now considering a single family home that I could both live in and rent out the other rooms to college students.  Does anyone have any experience with this or advice?

I'm a newbie and still learning, I'd like to say, however, that my husband and I bought a house that we live in and we rent rooms to college students and have LOVED the cash flow. Definitely wait to hear from others, but wanted to chime in that we did it without a lot of knowledge and now we're super excited to learn about real estate investing and make this a solid way to earn income! 

Best wishes to you...great you're starting so young, too! 

Originally posted by @Ann Harvey :

I'm a newbie and still learning, I'd like to say, however, that my husband and I bought a house that we live in and we rent rooms to college students and have LOVED the cash flow. Definitely wait to hear from others, but wanted to chime in that we did it without a lot of knowledge and now we're super excited to learn about real estate investing and make this a solid way to earn income! 

Best wishes to you...great you're starting so young, too! 

Thank you very much!  Good luck to you and your husband as well!  Was it an easy process finding college students that wanted to rent from you?

Chance, it was easy because where I live there isn't enough housing for renters. We could actually earn between $100-$200 more per room a month if we rented at the rates going around our neighborhood, but we like to keep it at a price we think is fair and good for students.  When we have our next rental property, we're more likely to advertise/rent at the going rate, though! Right now we're more emotional about everything...it's a very personal kind of thing, in a way, but we know to really make this work we need to start approaching it as a business. I'm here to learn, but wanted to let you know it's worked well for us to rent to students. :-)  I wish you the best!!!

@Chance Bostick , @Ann Harvey

As with any other form of Tenant occupancy - SCREENING and QUALIFYING will be the key to a happy situation for both You & Tenants. 

Once, new folks are in-place, and I'm satisfied with them - I always say to them - I want to keep you happy & keep you here, as long as you want to stay.   

@Chance Bostick hit me up sometime. I work in the lil ole town of Belton and have been for 33 years as an investor, home builder, land developer, mentor, flipper, real estate broker. I'll share some knowledge with you to get you on the right path. If not, rent by room is going for $500 near UMHB but not as much at TC. Other college towns are getting $800-$1000 a room. So yes, rent by room is solid investing and plenty of SF homes to choose from. Heck i have a 5br with 4 kitchen SF off E 10th listed. I think would rent for $3k total a mo. Good topic. Happy investing. 

Originally posted by @Ann Harvey :

Chance, it was easy because where I live there isn't enough housing for renters. We could actually earn between $100-$200 more per room a month if we rented at the rates going around our neighborhood, but we like to keep it at a price we think is fair and good for students.  When we have our next rental property, we're more likely to advertise/rent at the going rate, though! Right now we're more emotional about everything...it's a very personal kind of thing, in a way, but we know to really make this work we need to start approaching it as a business. I'm here to learn, but wanted to let you know it's worked well for us to rent to students. :-)  I wish you the best!!!

Glad to see its going well for you!  Keep up the great work!!

Originally posted by @Jim Cummings :

@Chance Bostick, @Ann Harvey

As with any other form of Tenant occupancy - SCREENING and QUALIFYING will be the key to a happy situation for both You & Tenants. 

Once, new folks are in-place, and I'm satisfied with them - I always say to them - I want to keep you happy & keep you here, as long as you want to stay.   

Thanks Jim!  Those 2 things will absolutely be at the top of my priority list if Im able to rent to college students.