Investing in college town

[Matthew Bradshaw]

I’m looking to invest in an area with about population of 200,000 people. A good portion of the city is built around a large college. Most of the real estate that looks good from the numbers side is close to the college campus.

What are the pros and cons of investing and renting out to college/young people? Should I stay away from it as a whole and look elsewhere? Lots of student housing possibility in this area that makes sense financially, I just want to make sure I do my due diligence on figuring out how much concern I should have renting to college kids.

Thanks!

[William Lokar]

I prefer targeting the graduate student population.  They are a bit less transient year to year, are more mature, and generally take better care of your place.  As a former college administrator I can tell you that mid-size state universities will see a lot of growth moving forward as smaller colleges are squeezed out of the market my rising costs.  I'm looking to stay invested in these types of towns.  Johnson City, TN is one of the markets that I like for this growth as well as other demographic shifts.