How Do We Feel About Student Rentals??

Question

Hello Everyone!

As the market continues to make it more difficult to find cash flowing investments, I have found myself wondering how people are viewing investing in Multi-Family student rentals? Around the Western Pennsylvania area where I live/work/Invest, we have a few small, college towns where there seem to be quite a few attractive deals. I know some were weary over the past few years about colleges going more remote than in the past, but it seems that fear has slowed down some.

Are any of you investing with success in student rentals in these college towns?? Anybody who swears against it (and why)?

Jake Andronico · Answer

@Max Feinberg

I have 2 student rentals that I self-manage, and it's been challenging but extremely rewarding. I have 10 tenants in 2 SFH's.

It's essentially the shortest "LTR" you can have in my mind, but longer term than MTR's. There are many benefits, but also some drawbacks.

@Will Gaston wrote a phenomenal article linked above. Certainly worth a read. My experience has been pretty much exactly on par with this.

Jim Rivell · Answer

Hey Max, we're doing student rentals here in Eastern PA. So far things have been great with no complaints and we're in an investor heavy community who are all doing well in the student rental market. You'll definitely find that cash flow is much higher, but you're going to have more Maitenance/turnover etc.

Let me know if you have any more specific questions and I'll be happy to help out.

Will Gaston · Answer

@Max Feinberg this thread might be helpful

Nearing 1,000 College Students: Here's What I've Learned

Wade Savage · Answer

Investing in multi-family student rentals can present a compelling opportunity in the current market, particularly in the Western Pennsylvania area where you live, work, and invest. While the recent shift to remote learning caused some concerns about the demand for student housing, it appears that these worries have somewhat subsided. The attractive deals in the small college towns in your vicinity are indicative of the enduring demand for student housing, underscoring the potential viability of this investment avenue.

Despite the challenges in finding cash-flowing investments, multi-family student rentals can offer a steady income stream and long-term profitability, given the consistent demand for housing near educational institutions. The Western Pennsylvania region's concentration of colleges and universities is a positive indicator for sustained demand in this niche market. Additionally, the potential for higher rental yields due to the shared nature of multi-family units could make this investment option even more lucrative compared to traditional single-family rentals.

While it is essential to remain mindful of market fluctuations and evolving educational trends, the apparent resilience of the student rental market in your area suggests that these investments could offer a stable and potentially lucrative option for your portfolio. Conducting thorough due diligence, including analyzing the local student housing market dynamics, vacancy rates, and rental trends, will be crucial in making informed investment decisions. Keeping a close eye on the shifting preferences of the student demographic and any developments in the higher education sector will further aid in assessing the long-term viability of multi-family student rentals in the Western Pennsylvania area.

Matthew Paul · Answer

" Animal House " comes to mind

How Do We Feel About Student Rentals??

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