College Rental Housing

7 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!!

@Anthony Madia Odds are you'll have to start with financing.  Have you put together a pro-forma?  Do you know that you can command enough rent to live rent free?  Do you know how long you have to live the state in order to qualify for in-state tuition?  Maybe you have all of that worked out but at the moment I'd put "becoming a landlord" about 7 steps down your list.

Anthony - UT is a great school and it is located in a hot neighborhood adjoining to downtown Austin.  It's a great idea to use property ownership for purposes of residency and in-state tuition.  With our sales prices rising faster then rents, I'm not sure if you will be able to achieve rent-free or positive cash flow.  It would be much more realistic to get a house or duplex, get roommates and have some of your mortgage covered so that your housing costs are less then market rate.  And of course, cherry on top is capital appreciation.  Good luck at school.  Let me know if you want to meet and discuss Austin Real Estate.  

Anthony, Carrie is spot on.  My daughter is going to UT and I looked in getting a duplex or small house for her to live in, have roommates and minimize expenses while she was at UT. As a long-term investment it might make sense, but if you plan to minimize costs, that is not the right path.  If you want to stay close to campus, you will be lucky to find anything under $500k and rents are ~ $600-$1200 per bed.  My daughter is in a 2 bed 2 bath with a roommate 2 blocks off of the engineering buildings and her half is $900/month + electric and water.  There are better deals the further you go out from campus, but then you miss out on the college life.  

Good luck at school and don't enjoy the college life too much!

Originally posted by @Bryan Petrinec :

Anthony, Carrie is spot on.  My daughter is going to UT and I looked in getting a duplex or small house for her to live in, have roommates and minimize expenses while she was at UT. As a long-term investment it might make sense, but if you plan to minimize costs, that is not the right path.  If you want to stay close to campus, you will be lucky to find anything under $500k and rents are ~ $600-$1200 per bed.  My daughter is in a 2 bed 2 bath with a roommate 2 blocks off of the engineering buildings and her half is $900/month + electric and water.  There are better deals the further you go out from campus, but then you miss out on the college life.  

Good luck at school and don't enjoy the college life too much!

 How did you go about finding the right roommate? 

Hey Anthony, I did the same thing when I went to college at Oregon State. I bought a place my sophomore year and rented it out to my buddies and am still renting it out. Prices in Corvallis have went way up since the purchase and I have close to 100k in equity now. However, one of my main goals was to get in state tuition as well. I had Oregon internships and jobs every summer yet the school would not classify my as a "resident" due to the fact that my primary purpose for moving to Oregon was for education. I had a house, drivers license, hunting/fishing license, paid utilities, property taxes, yet they still would not allow me to pay in state tuition. Hopefully it will be different for you. Just make sure you do your homework beforehand to see what classifies you as a resident. Good luck!
Originally posted by @Anthony Madia :
Originally posted by @Bryan Petrinec:

Anthony, Carrie is spot on.  My daughter is going to UT and I looked in getting a duplex or small house for her to live in, have roommates and minimize expenses while she was at UT. As a long-term investment it might make sense, but if you plan to minimize costs, that is not the right path.  If you want to stay close to campus, you will be lucky to find anything under $500k and rents are ~ $600-$1200 per bed.  My daughter is in a 2 bed 2 bath with a roommate 2 blocks off of the engineering buildings and her half is $900/month + electric and water.  There are better deals the further you go out from campus, but then you miss out on the college life.  

Good luck at school and don't enjoy the college life too much!

 How did you go about finding the right roommate? 

 It was a friend of hers from HS.

Originally posted by @Bryan Petrinec :
Originally posted by @Anthony Madia:
Originally posted by @Bryan Petrinec:

Anthony, Carrie is spot on.  My daughter is going to UT and I looked in getting a duplex or small house for her to live in, have roommates and minimize expenses while she was at UT. As a long-term investment it might make sense, but if you plan to minimize costs, that is not the right path.  If you want to stay close to campus, you will be lucky to find anything under $500k and rents are ~ $600-$1200 per bed.  My daughter is in a 2 bed 2 bath with a roommate 2 blocks off of the engineering buildings and her half is $900/month + electric and water.  There are better deals the further you go out from campus, but then you miss out on the college life.  

Good luck at school and don't enjoy the college life too much!

 How did you go about finding the right roommate? 

 It was a friend of hers from HS.

 Well thats convenient  

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