Is there still room to invest in student rentals ?

Question

Is student housing still a good market to invest in ? Or has it been taken over ?

Jody Sperling · Answer

No market has been taken over. You have more competition in some areas than others. The easier the entry, the fuller the competition, but the harder the entry, the more experienced the competition. No matter where you focus, you'll have company.

I buy single family homes in one target zip code, drilling down into a select few neighborhoods by a development I believe is going to create extreme appreciation and elevate the type of tenant looking to occupy the walkable dwellings. Nine out of ten times, my offers are too low, and nine out of ten times I overpay when I do win, but I know what I want and I'm ready for the work it takes.

Know what you want and you'll find it's not so hard to get. Time consuming at times, stressful, frustrating, but doable. Best of luck!

Jaron Walling · Answer

@Chaya Grossman There is always room grow. It's always a good time to get into REI. The longer you wait the less chances you have a learn, fail, and develop as a business owner. More experience narrows down your niche.

If you're interested in student rentals contact "For Rent" signs in your market and have friendly conversations with the owners. Try to add some value to there life. Buy them a coffee and listen. Get inspired to find your drive for real estate. Maybe they have some units they want to sell... just like that you created an off market deal.

In my opinion current students are realizing how expensive campus housing really is. College in general is over priced so tacking on another $10k per year for living makes paying off students loans ever harder. When I attended college I never lived on campus and paid $400 a month for my room. I'm so glad I did. I think demand for OFF CAMPUS rentals will continue to grow.

Gaetano Ciambriello · Answer

@Chaya Grossman

I invest in student rentals in CT. There are a couple markets here and I do not think any of them are too late to get involved. I met with an investor yesterday who is at 13 units, 5 of which were purchased in the past year. There are still opportunities out there.

Most important is finding a market/school that makes sense #'s wise and then going an inch wide, mile deep in that market.

Dave Poeppelmeier · Answer

Agreed, no market is ever "taken over". Student Housing is a great investment niche, but every single campus community is different. You need to find out everything about the culture of the college/university you want to invest in: What are typical student housing rates? When is the rental season (when students are looking for housing)? What do students expect in that area? I see you're in Brooklyn, so that might make it hard to do locally, but there are thousands of campuses across the country. Just do your homework, find your Core 4 in the area you want to invest in (just make sure they know about the campus), etc. Good luck!

Ryan Thomson · Answer

So much room! Especially if you can create a property management company to manage them as well. It's such a better way to cashflow SFH. I worked with @Mark Hirleman for a little while and he just grew from 6 to 70 something properties under management in two years.

Is there still room to invest in student rentals ?

Is there still room to invest in student rentals ?

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