Buying for my college student

Buffalo, New York
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Buying for my college student

Josh CaldonPro Member
Albany, Albany County · Member since 2026 · 11 posts · 4 votes

My son goes to college in Buffalo, NY. I am looking at buying him a house and renting extra rooms to his roommates. What should I be worried about and how do I mitigate any risks with this venture?

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Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
3d

@Josh Caldon you should be worried about buying an illiquid asset that is hard to move quickly if you find out you don't want to be a landlord. Buffalo is a good market for investors, particularly for student renters. Having your son run the property/keep an eye on it/rent out rooms can be a competitive advantage, if your son is a good tenant LOL. He can recruit tenants each year, sign leases, have students recruit other tenants, etc.. That can save you A LOT of money marketing the property, paying leasing fees, etc..

What you should watch out for:
1. That can be more work than it seems if he does not play a sport or have a built in friend group off the bat
2. You still need to properly screen even if they are friends, sign leases, coordinate security deposits

3. Maintenance and sub contractor coordination can be a real pain in the a**. Is he going to do all of this or are you going to contract with a local PM company?

4. While your son can be a competitive advantage to recruit tenants, he can be a disadvantage if you don't have your systems in place

5. ITs hard to make money in 4 years investing in Real Estate, you need to have a plan for after he graduates, or transfers, or whatever comes up.

Might be best to hire a professional to handle leasing, maintenance, and sub coordination, while your son handles recruitment. Or simply outsource everything to a PM company and let them mitigate risks for you.

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  • Diana KhanPro Member
    Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 741 posts · 267 votes
    3d
    Quote from @Josh Caldon:

    My son goes to college in Buffalo, NY. I am looking at buying him a house and renting extra rooms to his roommates. What should I be worried about and how do I mitigate any risks with this venture?

    @Josh Caldon, I think this could be a good opportunity, but I'd pay close attention to the rental side before buying. I'd make sure the property can legally be rented to multiple students, check the insurance coverage, and have clear written agreements covering rent, utilities, maintenance, and what happens if someone moves out early. I'd also plan for vacancies and repairs, especially if your son eventually decides to move elsewhere.

    I'm a real estate attorney, broker, and investor based in Maryland, and I work with landlords and property owners on leases, contracts, and rental matters. I've seen how roommate arrangements and unclear responsibilities can lead to disagreements, so I think it's important to have everything properly laid out from the beginning.

    Thanks for sharing this, @Josh Caldon! It's an interesting way to help your son with housing while building an investment. I'd also recommend having a New York real estate attorney review the arrangement before moving forward. Happy to stay connected!

    [email protected]240-266-0291
    2Reply
    • Josh CaldonPro Member
      OP
      Albany, Albany County · Member since 2026 · 11 posts · 4 votes
      2d

      Thanks so much Diana. I plan on reaching out to a couple of lawyers in the Buffalo area tomorrow that I was referred to. Would you suggest any specific questions I should ask them?

      0Reply
  • Matthew Irish-JonesBusiness Member
    Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
    3d

    @Josh Caldon you should be worried about buying an illiquid asset that is hard to move quickly if you find out you don't want to be a landlord. Buffalo is a good market for investors, particularly for student renters. Having your son run the property/keep an eye on it/rent out rooms can be a competitive advantage, if your son is a good tenant LOL. He can recruit tenants each year, sign leases, have students recruit other tenants, etc.. That can save you A LOT of money marketing the property, paying leasing fees, etc..

    What you should watch out for:
    1. That can be more work than it seems if he does not play a sport or have a built in friend group off the bat
    2. You still need to properly screen even if they are friends, sign leases, coordinate security deposits

    3. Maintenance and sub contractor coordination can be a real pain in the a**. Is he going to do all of this or are you going to contract with a local PM company?

    4. While your son can be a competitive advantage to recruit tenants, he can be a disadvantage if you don't have your systems in place

    5. ITs hard to make money in 4 years investing in Real Estate, you need to have a plan for after he graduates, or transfers, or whatever comes up.

    Might be best to hire a professional to handle leasing, maintenance, and sub coordination, while your son handles recruitment. Or simply outsource everything to a PM company and let them mitigate risks for you.

    Irish Jones Realty4.948 Reviews
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    2Reply
    • Josh CaldonPro Member
      OP
      Albany, Albany County · Member since 2026 · 11 posts · 4 votes
      2d

      Thanks. I am presently working with Earl Altheide from your company. My son is an engineering student and shouldn’t have the time to be a big partier. He also says he has a good group of friends he thinks would be good renters. I am not looking to buy anything amazing so sitting on it for a few months in three years isn’t too daunting for me. As this is my first investment I hope to come up with some systems. I would like my son to try to manage the property. I think it would be a good learning experience for him.

      0Reply
    • Matthew Irish-JonesBusiness Member
      Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
      2d

      Well you are in great hands with Earl. I agree it will be a great learning experience. My greatest regret in Real Estate is I didn't buy more property sooner.

      Irish Jones Realty4.948 Reviews
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  • Timothy Smith
    Investor · Buffalo, NY · Member since 2019 · 164 posts · 114 votes
    3d

    Hi Josh, your post piqued my interest as this was exactly what my landlord was doing when I first moved to Buffalo: his son lived upstairs and "managed" the property, and I lived downstairs and actually took care of the place. They eventually sold when the son graduated and no one was local to manage it anymore, and I know they did well given the massive appreciation Buffalo saw in the mid-teens. But it was also a hot location that saw a lot of attention from owner-occupant buyers, so they caught a nice tailwind. What neighborhood are you talking about? That would be very helpful, which I will come back to.

    Be careful you are not venturing into boarding house status, which requires a different license here in Buffalo. A lot of owners still do it, and if you follow any of the news (especially around UB South Campus) you'll see the inspectors are really starting to crack down on it.

    I would honestly approach this as a way to mitigate your sons housing cost rather than a whole separate investment venture. What about a small double (that's Buffalo-speak for duplex) like a 2 bed/1 bed where he lives in the smaller unit and rents the other one out? At least cover his rooming costs by off-setting rent, then sell the property when you no longer need it. Even if you sell it for close to what you paid, you were not paying for a dorm room or apartment for 4 years. Of course there is more to calculate there, but I think it's a significantly less risky venture than trying to manage many tenants -- and the inherent turnover and drama.

    Back to the location. If you are talking about close to Buffalo State, the areas of Black Rock and Riverside are close while offering some economical (and not giant) houses. UB North campus is in the burbs and there are not a lot of small homes close by unless you are driving further than most kids want to commute to campus. UB South campus is....well, I'm not putting my thoughts in writing as those neighborhoods attract a lot of the stereotypical "party house" attention that ends up in the news. If you are talking about Canisius or D'Youville, those also have options nearby.

    1Reply
  • Josh CaldonPro Member
    OP
    Albany, Albany County · Member since 2026 · 11 posts · 4 votes
    2d

    Thanks so much Timothy! He is an engineering student. He is presently living at UB North and all of his classes are on that campus. We are looking at Amherst. We have decided on a single house with 2-4 rooms. He thinks he has a good group of friends that would be responsible renters. I’ve never bought an investment property before and it is a little daunting doing it four hours from my home, but I am a pilot with a little time on my hands and this seems like a good learning experience for both my son and I. I would just like to be cash flow neutral taking in account what we are presently paying for him to live in a cramped dorm room and forced to eat cafeteria food.

    0Reply
  • Matthew MorrowBusiness Member
    Investor · PA - NY - NJ · Member since 2019 · 936 posts · 340 votes
    2d
    Quote from @Josh Caldon:

    My son goes to college in Buffalo, NY. I am looking at buying him a house and renting extra rooms to his roommates. What should I be worried about and how do I mitigate any risks with this venture?

    @Josh Caldon one thing I haven't seen mentioned: run the numbers as if your son weren't there to hold it together. If it only works with him collecting rent, handling repairs, and keeping roommates happy, it gets fragile the day he graduates or gets busy. Then budget for the building itself. Older houses usually have big items nobody told you about, like roof, furnace, plumbing, and electrical, so buy with reserves and a real inspection. And decide up front how the leases work, everyone together or each roommate on their own, and what happens when one of them leaves in the middle of the year. That's where these usually get messy. I'd also confirm the city's rules on how many unrelated people can live in one house before you make an offer.

    [email protected]484-791-6200
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    • Josh CaldonPro Member
      OP
      Albany, Albany County · Member since 2026 · 11 posts · 4 votes
      2d

      Thanks! I planned on getting an inspection and making my offer contingent on what is found. I think I makes most sense for everyone to get their own leases and include the utility bill in the rent, but I’m open to advise on that.

      0Reply
  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 684 posts · 285 votes
    2d

    @Josh Caldon That sounds like an idea worth exploring, especially if the house could still work as a rental after your son graduates. I’d start by checking with the municipality about renting rooms to unrelated students, legal bedrooms, and any registration or inspection requirements. If the house is within Buffalo city limits, I’d pay particular attention to its rental-compliance rules rather than assume your son living there makes it owner-occupied. A thorough home inspection and a conversation with your insurance agent about the planned setup would be on my list, too.

    The piece I’d be most mindful of is keeping your son out of the middle if a friend pays late or there’s a disagreement. Having you or a manager handle rent and repairs could help keep those friendships separate from the rental. I’d also have a local attorney review the lease so everyone understands utilities, damage, guests, and what happens if someone leaves early. On the numbers, I’d leave room for summer vacancies, repairs, snow removal, and unexpected turnover, without relying on your personal emergency fund. If the house still makes sense without every room occupied—and after your son moves on—I’d feel much more comfortable considering it.

    [email protected]
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    • Josh CaldonPro Member
      OP
      Albany, Albany County · Member since 2026 · 11 posts · 4 votes
      2d

      Right now I plan on selling the rental after he graduates and doing a 1031 exchange into a syndicate or something closer to home.

      I'm struggling with having his roommates pay me directly or go through my son. Dealing with these kinds of interpersonal relations is a good learning experience.

      As for summer vacancies...what is some advice on having everyone sign a 12 month lease and allow them to sublet in the summer with my permission after screening?

      0Reply
  • Ryan BakerBusiness Member
    Lender · Strongsville / Cleveland, OH · Member since 2026 · 134 posts · 33 votes
    2d

    One thing to sort out early is how the loan will be structured, since whether your son lives there and whether you or he is on the loan changes the type of financing and the down payment. It's also worth checking local rules on how many unrelated roommates you can have in one house. I do lending and can go through the options with you for a Buffalo purchase. 

    [email protected]330-548-3340
    1Reply
    • Josh CaldonPro Member
      OP
      Albany, Albany County · Member since 2026 · 11 posts · 4 votes
      2d

      Thanks Ryan. I am working with a loan originator I used to buy my residence in NY, but I am certainly willing to talk.

      0Reply
  • Owen RosenBusiness Member
    Professional · Clinton Township, MI · Member since 2015 · 714 posts · 268 votes
    2d

    Insurance agent here: getting the right coverage for student housing can be tricky. Many carriers limit or decline homes rented to several unrelated students, so start shopping for a landlord policy before you close, and make sure the carrier knows exactly how the house will be used.

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  • Marc MoraPro Member
    Investor · Fort Lauderdale, FL · Member since 2026 · 122 posts · 19 votes
    1d

    @Josh Caldon , let's connect. I've done this! Having your son already there is a plus. What tends to get tricky is friends paying rent to a friend, so it's worth deciding early who deals with a late payment or a roommate moving out. Past that, it mostly depends on whether you'd keep it after he graduates. Location, location, location!

    I'll help however I can, including some good contacts. Would your son be the one collecting rent?

    1Reply
    • Josh CaldonPro Member
      OP
      Albany, Albany County · Member since 2026 · 11 posts · 4 votes
      1d

      Thanks so much. I am debating making him the one collect the rent. I don’t want to overburden him but I also think dealing with some of this kind of interpersonal stuff would be a good growth experience for him. Please let me know how you would like to connect further. I really appreciate the help.

      1Reply
    • Marc MoraPro Member
      Investor · Fort Lauderdale, FL · Member since 2026 · 122 posts · 19 votes
      10h

      Sure thing! Makes sense. Shooting you a message now

      0Reply
  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    1d

    @Josh Caldon I call them kiddie condos.  Did it with 3 and soon-to-be 4 of my children.  Perfect for 1031 exchanges.  Perfect for building responsibility and their credit.  And perfect for getting a favorable interest rate and insurance if you buy it using them as the primary borrower, with you on the deed and as guarantor.  

    It’s their house to upkeep and manage, and their credit is building.  They collect rent and pay you.  They probably get discounted rent in Exchange for managing.  You’re still on the deed, lease, and mortgage in case anything happens.  And with an owner-occupant, taxes, insurance, and mortgage will be much cheaper

    And big bonus!!!  If you hold for 2 years, then you can do a 1031 only enough to satisfy the exchange, and their portion becomes tax-free under sec 121.  Huge graduation present!!!!!  Either to them or back to you in exchange for the grief of the first 21 years :)

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    • Josh CaldonPro Member
      OP
      Albany, Albany County · Member since 2026 · 11 posts · 4 votes
      12h

      Thanks! I am struggling with whether to make him an actual owner or not. Did you find any liabilities with this approach?

      0Reply
  • Halim Fakir
    Real Estate Consultant · 30 North Gould Street Suite R Sheridan, Wyoming 82801 · Member since 2026 · 5 posts · 2 votes
    12h

    Main things to keep on your radar in Buffalo:

    • Zoning & City Codes: Buffalo strictly limits unrelated tenants in single-family zones and requires rental registration.

    • Winter Maintenance: Heating and snow removal costs in Buffalo can be a shock if you're not prepared.

    • Liability & Leases: Require parent co-signers for all roommates and draft solid lease agreements covering property damage.

    Getting a good local real estate attorney to review your setup early on will save you a lot of headaches.

    1Reply
  • Josh CaldonPro Member
    OP
    Albany, Albany County · Member since 2026 · 11 posts · 4 votes
    11h

    I’m looking for a good local real estate attorney now. Thanks!

    1Reply
    • Nadia Khan
      Virtual Assistant · USA · Member since 2026 · 14 posts · 1 vote
      10h

      That makes sense! Having a good local real estate attorney can really help avoid problems.

      0Reply
  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    11h

    The first 4 years of owning a rental are often going to be an opeartional wash and then there is the close costs 3% or so on buy and 6% or so on sell. Only buy if plan to hold the building for 10 plus years. But if find a building that makes sense and he can live there for the 4 years also its a great bonus! Rents are collected electronically by every landlord I know and myself atleast so nothing for your son to need to collect. Could get awkward though if one of the tenants who are roommates falls behind. I would never want to live in the same unit as tenants, house hacks are usually you live in one unit and then rent out the other units. 

    1Reply
    • Nadia Khan
      Virtual Assistant · USA · Member since 2026 · 14 posts · 1 vote
      10h

      Good points! Long-term planning and choosing the right property make a big difference in real estate investing.

      0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    10h

    Engineering programs are demanding, but that doesn't mean they don't like to party. Things I'd worry about are putting your son in a situation where one of his friends doesn't pay rent or him having to manage the property when he may not have enough time to do it or the maturity/experience (given his age). I think if they look it as renting a house from a landlord and deal with you directly, it might be easier.

    0Reply
  • Allan C.
    Rental Property Investor · Member since 2018 · 829 posts · 811 votes
    6h

    I can understand the appeal, but objectively this is not a smart investment - so many things to go wrong and only one thing can go right.

    Write down the pros and cons on a sheet of paper and see if you’re still interested.

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