College Rental Properties

5 Replies

Next year I will be attending University of Texas at Austin and I am looking for guidance on owning a property in Austin with a tenant that pays the rent while I live rent-free so I can pay in-state tuition. I am young and extremely new to this game so any responses related to becoming a landlord will be helpful!!

Austin is one of the hottest markets in the country now.  You have your work cut out for you. 

I think house hacking absolutely is the way to get started in the investment game, I don’t know that you will be able to live rent free, but you should be able to live much cheaper that you otherwise could.

As far as in State tuition, I believe, you will need to own a home for a year before you can qualify.

@BartHedgcock How do you think I can go about house hacking with little money available?

@Anthony Madia if you're living in the house for at least a year, you can qualify for a 3.5% downpayment loan. That's one of the biggest benefits of house hacking. 

Austin will be tricky, especially if you're coming from out-of-state. The areas where students live have been picked thin by investors for years. Finding a duplex or quad that hasn't already been flipped is going to be hard in one of those areas near campus. Now, if you aren't looking for a great deal and just want a place to live, that's different. It will be pricey though.

If you venture further south of campus (and south of 290), you can find deals, but then you'll be a 30-minute drive to campus. Austin has a terrible public transportation system compared to what you're used to, so be careful not to underestimate the time it takes to navigate this city. Traffic is the worst thing about Austin. 

Originally posted by @Bryant Patterson :

@Anthony Madia if you're living in the house for at least a year, you can qualify for a 3.5% downpayment loan. That's one of the biggest benefits of house hacking. 

Austin will be tricky, especially if you're coming from out-of-state. The areas where students live have been picked thin by investors for years. Finding a duplex or quad that hasn't already been flipped is going to be hard in one of those areas near campus. Now, if you aren't looking for a great deal and just want a place to live, that's different. It will be pricey though.

If you venture further south of campus (and south of 290), you can find deals, but then you'll be a 30-minute drive to campus. Austin has a terrible public transportation system compared to what you're used to, so be careful not to underestimate the time it takes to navigate this city. Traffic is the worst thing about Austin. 

 This, Bryant is spot on with the lower down payment, you also get lower interest rates, and with roommates you can significantly lower what you owe.

Plus if you are a student, you have cost avoidance.  I mean you have to live someplace.  so ANYTHING you get from other renters will lower your costs.  Even if the numbers aren't stellar by Bigger Pockets numbers in terms of absolute returns.

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