Investor looking for rentals in college communities

[Jonathan Roach]

I am an accidental investor as I decided to keep my Minneapolis home after relocating to Tampa, FL and currently have renters in place in Minneapolis.  Looking to buy a multi-family home in Gainesville area near UF where my son can stay, as well as make money from other UF students.  Idea is that buying and renting home/ duplex/ quad in college town will be cheaper than dorm room for my son, since he will be paying for tuition.

[Ryan Gillette]

Just a tip - you might consider financing it with your son through Freddie Mac and capture owner-occupied financing terms. So instead of putting 25% down at a investor rate, you put 3.5%-5% down (or at least have the option to if you want) and capture the OO rate.

How it works from a mortgage standpoint is that he's the occupant borrower with no income. You're the non-occupant co-signer with income. Freddie Mac allows the ratios to merge. 

I've done a few deals like this in the last year or so with parents and children. It's a good financial deal usually, and it's a great opportunity for the child to learn about real estate if that's something they're interested in. The one thing to consider long term is what you'll do with the property after they graduate.