Investing in College Towns (or specifically Ithaca, NY)

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Investing in College Towns (or specifically Ithaca, NY)

Megan Elliott
Real Estate Agent · Surf City, NC · Member since 2020 · 25 posts · 13 votes

Looks like we are moving to Ithaca, NY this summer! Anyone know what the investment market is like?  Seems like the universities are the main attractions. I haven’t bought in a college town before. Any recommendations would be greatly appreciated. 

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Stephanie JacobsonBusiness Member
Real Estate Agent · Ithaca, NY · Member since 2016 · 427 posts · 323 votes
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Hi Megan! I’m an agent and I specialize in student rentals. I live in Ithaca, but I cover Cortland and Binghamton as well. 

Ithaca has a very healthy rental market, particularly for students and young professionals. The students pay what I consider an absurd amount of money, particularly as you get closer to campus in upper collegetown. (The same exact apartment might be $450/bed in Binghamton vs. $800/bed or more in Ithaca.) The downside to investing in an affluent area with high rents is that the price point for entering the market is higher. But appreciation here is excellent, and there are good deals to be had. I’ll shoot you a message and see if there’s any way I can help!

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  • Tanvir Sattar
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 380 posts · 588 votes
    5y

    @Megan Elliott If you're relying on the university to provide tenants, this may not be the year to make the leap. However, I've seen some really great ROIs for a lot of our college landlords. 

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  • Stephanie JacobsonBusiness Member
    Real Estate Agent · Ithaca, NY · Member since 2016 · 427 posts · 323 votes
    5y

    Hi Megan! I’m an agent and I specialize in student rentals. I live in Ithaca, but I cover Cortland and Binghamton as well. 

    Ithaca has a very healthy rental market, particularly for students and young professionals. The students pay what I consider an absurd amount of money, particularly as you get closer to campus in upper collegetown. (The same exact apartment might be $450/bed in Binghamton vs. $800/bed or more in Ithaca.) The downside to investing in an affluent area with high rents is that the price point for entering the market is higher. But appreciation here is excellent, and there are good deals to be had. I’ll shoot you a message and see if there’s any way I can help!

    3Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    5y

    Be sure to have the parents co-sign for undergraduates in college towns.

    I like college towns with graduate programs so I can get older students. I also think that people forget that the best renter in a college town is adjunct faculty. They often move around, especially now, and they are much better tenants than students in general. Based on what @Stephanie Jacobson said, it's just about finding the right property that will rent well and appreciate, even if the in-price is high, and then choosing best options for tenants.

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  • Jared Poso
    Real Estate Agent · Cortland, NY · Member since 2020 · 5 posts · 2 votes
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    Welcome to the area Megan! I'm an agent working with mostly income property in Cortland and Tompkins counties. Ithaca prices are high but the rents and appreciation make up for it. College housing is hard right now but many people are still making a great return. I'll shoot you a message and see if there's any way I can help.

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  • Amos Mainville
    Specialist · Elmira, NY · Member since 2019 · 33 posts · 38 votes
    5y

    First, welcome to the finest wine region in NY. Its truly a fantastic area for real estate as well. My wife and I invest heavily in the Elmira market (45 mins southwest) but spend a great deal of time in Ithaca. Its a fantastic small city.

    Some great advice above and nothing to add except be very careful in finding the right deal. As a licensed NY home inspector, we evaluated 35 properties to buy our first 3 duplexes. There are many "deals" in this region that would sink a lot of capital before they produce a return. I dont say this to try to scare you, just as a cautionary tale.

    Welcome!

    Amos Mainville

    Chemung Valley Home Inspection LLC

    NY License 16000120633

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  • Tanvir Sattar
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 380 posts · 588 votes
    5y

    Originally posted by @Jonathan Greene:

    Be sure to have the parents co-sign for undergraduates in college towns.

    @Megan Elliott There are free tenant management softwares out there that can assist with this. I know with some you are able to sign documents electronically so Mom and Dad can do it virtually without being in town. 

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