Cypress, TX · Member since 2014 · 5 posts · 1 vote
We are thinking about purchasing a home in a college town (San Marcos, Tx) to be rented to college students. What are the pros and cons for renting out a condo vs. a single family home in this kind of market?
Residential Real Estate Agent · Austin, TX · Member since 2013 · 11 posts · 4 votes
11y
Hi Kelly,
I'm an investor who got started with buy and hold properties in Austin in 2011. Last year I had moved to San Marcos to begin my MBA so I've gotten familiar with the market there and just like the other surrounding communities near Austin San Marcos is still a good area to invest in SFH's. There are many duplexes and condos as well. I remember a pod cast a while back with a guest who exclusively used buy and hold condo's as his business model. While I haven't bought any yet I have looked into them in San Marcos. The tenants can be of higher quality, and there are many that are right next to campus. The condo fees usually hurt your net cash flow, but if you buy at the right price they can work well. As you said, roommates are the key to saving cost on rent!
Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
11y
Condos scare me. 1. you compete with apartments with big pocket 2. condos are first to loose value and last to gain (university locations may buck this trend) 3 limited buyer pool as opposed to sf because of shared walls, no yard, everything houses have but apartments dont 4 I like to decide when and by whom my maintenance is done (often me).
Pros common maintenance/ no neighbor with waist high lawn
Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
11y
@Kelly Moore Welcome to BP! As to your question, you want to make sure that there are no restrictions with the condo that would prohibit you from renting rooms, etc.
You'll want to do your due diligence and make sure there is demand for more space, etc.
If you do a search on BP, I'm sure you can find blogs, podcasts, etc. dedicated to renting to college students, such as
Cypress, TX · Member since 2014 · 5 posts · 1 vote
11y
Great info everyone! Thanks for taking the time to respond. I think we are going to lean more towards a SFH for our first go-round. There are a bazillion apartment buildings in the area and I definitely don't want to compete with that (at least not while I am still getting my feet wet). Also, the idea of condo fees eating into my net income doesn't appeal to me either.
Realtor · Lafayette, LA · Member since 2011 · 296 posts · 175 votes
11y
Condo's are scary as an investor bc the association can issue "special assessments" at any time. As an investor you have less control of a condo. Less control of your real estate investment is not ideal. I would go the SFH route if possible.
Investor · Pueblo West, CO · Member since 2014 · 310 posts · 213 votes
11y
Go to Zillow and look at the difference in appreciation of houses and condos. Go on craigslist and see what the difference is in rent. I bought a 4 bed/2 bath house close to campus for 182K. I currently get 1450, but I'm going to raise the rent to 1600 on the next lease (400/room). The only other property I was considering was a 2 bed/2 bath condo for 105K with a 110/month HOA. The rent on this is $950, which is technically $475/room. When it comes time to sell, the condos don't appreciate very much. Most parents buy condos for their kids and not houses. When it's time to sell, you usually have to compete with a ton of other parents that want to sell the condo when their kid graduates.
Great info everyone! Thanks for taking the time to respond. I think we are going to lean more towards a SFH for our first go-round. There are a bazillion apartment buildings in the area and I definitely don't want to compete with that (at least not while I am still getting my feet wet). Also, the idea of condo fees eating into my net income doesn't appeal to me either.
I own 2 condos and do not wish to purchase a 3rd. Sfh all the way imo