Student Housing Lesson in Pittsburgh and why BP is invaluable

[Derek Rocco]

Hi, all.

I was getting really close to starting to finance a deal in a College town near Pittsburgh. I posted about it here on BP and got some really great advice. I actually got to talk to a seasoned investor and he said the deal seemed good, but there was probably a catch.

After doing some research I discovered that University has recently changed their housing to make it required students live on campus for four years. While I'll still consider the house, this is a major red flag.

I would have never checked this out without the advice of the investor! Great lesson.

[Igor Messano]

I agree with @Peter Tverdov that the policy might change and if you can acquire the property cheap enough to be a decent deal WITH the policy, it can become a home run if the policy reverses. Stuff like this boils my blood and idk how universities get away with pretty much creating a monopoly on student housing.