Real Estate Agent · Phoenix · Member since 2024 · 8 posts · 8 votes
Hello everyone, I am recently graduated from ASU. I am some experience in real estate and am currently working for a brokerage. After 4 years of paying landlords rent, I would like to start in investment real estate. I just want to find out what is best for student rentals? What advice would you give? Are there certain types and size of properties are best? Obviously I think closer to the school the better, but are there certain neighborhoods that are better than others?
Congratulations on your recent graduation from ASU and your entry into the real estate field! Starting in investment real estate, especially with a focus on student rentals, can be a rewarding endeavor.
Single-Family Homes: These can be a good starting point, offering flexibility and potentially lower upfront costs. They appeal to students looking for a more private and homely living situation. Multi-Family Properties: Duplexes, triplexes, and small apartment buildings can offer higher rental income and spread the risk across multiple tenants. These are typically more expensive but can be more profitable.
Condominiums and Townhouses: These can be lower maintenance compared to single-family homes and multi-family properties, as HOA fees often cover exterior maintenance. However, be mindful of HOA rules regarding rentals.
Proximity to Campus: Properties closer to the university typically attract more interest from students and can command higher rents. Consider properties within walking distance or with easy access to public transportation.
Safety: Neighborhood safety is a priority for both students and their parents. Research crime rates and choose areas with a good reputation.
Amenities: Look for areas with access to amenities such as grocery stores, coffee shops, gyms, and entertainment options. Students appreciate convenience.
Growth Areas: Consider neighborhoods that are up-and-coming or undergoing revitalization. These areas may offer better long-term appreciation potential.
Specific Neighborhoods:
Research Local Demand: Talk to current students, university housing offices, and local real estate agents to identify neighborhoods with high demand for student housing.
Check University Plans: Universities sometimes have expansion plans that can affect housing demand. Stay informed about any new construction or development projects.
Investing in student rentals can be a lucrative niche if approached with careful planning and research. Best of luck with your investment journey!
Congratulations on your recent graduation from ASU and your entry into the real estate field! Starting in investment real estate, especially with a focus on student rentals, can be a rewarding endeavor.
Single-Family Homes: These can be a good starting point, offering flexibility and potentially lower upfront costs. They appeal to students looking for a more private and homely living situation. Multi-Family Properties: Duplexes, triplexes, and small apartment buildings can offer higher rental income and spread the risk across multiple tenants. These are typically more expensive but can be more profitable.
Condominiums and Townhouses: These can be lower maintenance compared to single-family homes and multi-family properties, as HOA fees often cover exterior maintenance. However, be mindful of HOA rules regarding rentals.
Proximity to Campus: Properties closer to the university typically attract more interest from students and can command higher rents. Consider properties within walking distance or with easy access to public transportation.
Safety: Neighborhood safety is a priority for both students and their parents. Research crime rates and choose areas with a good reputation.
Amenities: Look for areas with access to amenities such as grocery stores, coffee shops, gyms, and entertainment options. Students appreciate convenience.
Growth Areas: Consider neighborhoods that are up-and-coming or undergoing revitalization. These areas may offer better long-term appreciation potential.
Specific Neighborhoods:
Research Local Demand: Talk to current students, university housing offices, and local real estate agents to identify neighborhoods with high demand for student housing.
Check University Plans: Universities sometimes have expansion plans that can affect housing demand. Stay informed about any new construction or development projects.
Investing in student rentals can be a lucrative niche if approached with careful planning and research. Best of luck with your investment journey!
With student properties the size really comes down to the number of beds. A single family with permits for 7-8 students may be more profitable than a 3 units with two beds in each unit. That said, units with lower bed counts will be easier to manage. As a first timer, I would be cautious of houses or units with a large number of renters within one shared unit. I agree with Travis that multi units can help spread risk.
As with any type of real estate - location, location, location. Typically, the closer to the school the better, but markets vary. Some locations may have "pockets" of high density student housing that proves to be more popular than a house across from one section of campus. Also, make sure student housing is permitted in the area of the city/town that you are investing in.
Jimmy, I agree that location is important. Students don't want to have to pay for a parking permit if they don't have to. Walking distance is best, the easy biking to campus (sidewalks, bike paths, etc.), then public transportation. Also, look where other students are living. If all the students live on one side of campus and you buy on the other, it may not be rented as easily.
I'm glad you found a niche to go after and master. Stick with it and let everyone know how it is going.
Hey James the prime area for ASU Tempe is a 0.5-mile radius from the center of campus and then the next tier is a 0.5-1 miles from campus. These are the two hot zones with elevated rents due to their proximity to ASU Tempe.