Out of State Student Housing Strategy

[Tom Rodgers]

I’m exploring a strategy around student rentals and wanted to get some feedback.

The idea is to buy affordable 3–4 bedroom single-family homes near a university, rent them by the room at $500–$700 each, and furnish them to appeal to students.

Example:

• $120K purchase + $15K rehab = $135K all-in

• 4 rooms at $600 = $2,400/month gross rent

• After expenses, projected CoC return is 10%

Has anyone here had success with this model? What challenges should I be ready for (turnover, management, wear and tear, etc.)?

[Will Gaston]

Quote from @Tom Rodgers:

I’m exploring a strategy around student rentals and wanted to get some feedback.

The idea is to buy affordable 3–4 bedroom single-family homes near a university, rent them by the room at $500–$700 each, and furnish them to appeal to students.

Example:

• $120K purchase + $15K rehab = $135K all-in

• 4 rooms at $600 = $2,400/month gross rent

• After expenses, projected CoC return is 10%

Has anyone here had success with this model? What challenges should I be ready for (turnover, management, wear and tear, etc.)?

Tom this thread on college house and student rentals below may be helpful: Nearing 1,000 College Tenants - Here's What I've Learned

First thing you should do is call Zoning near your target school - lots of Cities disallow large numbers of students living together