Temple University Philadelphia properties

[Chaits J.]

Hello All,

I am a buy and hold investor from Princeton,NJ and looking to expand my portfolio into Philadelphia. I don't have any idea about the neighborhoods apart from driving in and out of the airport. I have been thinking of exploring philly area because of the proximity and started looking online into areas around temple university.  I am actually surprised to see some online listings claiming 12-13% cap on student housing rental properties. What is the ground reality there? Really appreciate if you can refer any local knowledgeable investor friendly RE agents.

Thanks!

[Kevin M.]

@Chaits J. I’m the owner of a couple rentals near temple. I would guess you’re seeing higher caps rates for student housing because it’s typically more difficult to manage with such high turnover. You have a lot of turnover coordination headache and risk. That being said- i actually like college student tenants because they typically pay rent since they have a lot to lose and their parents co-sign.