Real Estate Investor · Member since 2009 · 17 posts · 1 vote
So this is my situation. Me and my brother plan on spending two more academic years at a university (20k students). We both want to get into real estate investing, and figure that instead of us both paying ~9k a year either living on campus, or renting off campus. Why don't we spend approx. the same amount buying our own 2 bedroom condo.
If we can find a condo for sale that would run us about the same (or less) than living on campus or renting, wouldn't this be a better opportunity since we will be building equity in our condo rather than paying someone else and losing the money. Plus the fact that we would be able to get our foot into REI.
Second thought, we would plan to move out after graduation but keep the property as a rental property. Are there any specific factors about college towns/renting to college students, that we should be wary of? Be honest guys.
Investor · Mableton, GA · Member since 2009 · 1k+ posts · 465 votes
16y
Great thinking! With a big "but" behind it... I'm not sure if you are in college or just getting ready to enter one, but if after graduation you plan to rent your place to the "Party on, Dude!!!" Crowd, don't be surprised if someone decide to have a camp fire in the middle of your living room... Not to mention the "After party" vomit stain on the carpet... I think you get the picture.
Some landlord swear by college kids renters while other say "never ever again..."
Lender · Phoenix, AZ · Member since 2008 · 351 posts · 40 votes
16y
If you do want to rent it out I would make sure you can almost hit about 60 percent on the "50 percent rule".
Also, I think I would really only do it if you knew the people well you are renting to. Since you have an average sized university if it is a state school Im sure you have people that went to your high school going to the university. You can create a pipeline into your condo but more importantly have a good relationship with the parents possibly. I would make sure parents sign with your tenants. Its amazing what a lot of kids wont do if their parents know what they are doing(or intended on doing?)...
Just look around and really think of how you would want to rent it out and the kind of kids you could rent out to. I just graduated from a big party school and it would have been a mess, especially from a distance now.