Off Campus Housing - More Reasons Why It May Be A Good Investment
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Earlier this month we talked about the benefits of buying into the student housing market, and now Marketplace has an interview on the benefits of owning off campus housing as a investor and landlord.
I still think this a good local investment if you are hands on and willing to get dirty. College students in some ways are hard on properties, but you will typically get paid and with the university budget crisis and high growth in students, demand is high.
SCOTT JAGOW: This morning, we’ll get the latest numbers on existing home sales. Probably yet another sign about the cooling housing market. Buying up a bunch of homes or several apartment buildings may no longer seem like a sure-fire investment. But we’re here to tell you about a place in the real estate market that’s fairly certain to pay off. Here’s Alex Cohen:
SANDY POPE: This is considered a loft, even though it has a separate bedroom, so when you come in your front door you’ve got your storage . . .
ALEX COHEN: Realtor Sandy Pope shows off a condo in Austin, Texas. This unit lists for $200,000 dollars even though it’s only 750 square feet.But it’s perfect for students. It comes with a high-speed Internet connection, there’s a pizza place on the ground floor, a bus stop right outside and the University of Texas campus is just a few blocks away. via Marketplace
Listen to the Interview (via Realplayer)
My Representative is one of the infamous eight Republicans who voted to support this disgraceful legislation, Frank LoBiondo in South ...
When selling our homes, what takes place should be between the seller and the buyer. Not the government. ...
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If you haven't read this bill I could easily see how one could support it. I mean the bill ...
Pain is gain. I really support this, and the change may be hard but it has to be done. ...
I can't tell you how many people I've talked to in the past week who are completely unaware that the ...
The liberal government policies have facilitated the expansion of the foreign involvement in the Real Estate Investment sector. 
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I am a person that has been qualified for a loan and really would love to see this enacted. ...
Comment by Garrett Koerner on 28 February 2007:
Good post. However, like you said, college students can be harder on properties that other potential tenants. Do you have any guidance on how much should be saved in a reserve account…for fixing up the property after a couple of years or after a group of tenants move out? Maybe a fixed amount per month or percentage of rent collected. I would be interested in anyone’s experience. It would be nice to own some property close to campus and watch it appreciate over the years but if students are tearing it apart, without any subsequent improvements, I could imagine that there would be little or no appreciation. Thanks, Garrett (www.equitygreen.com).
Comment by Real Estate Guide 101 on 28 February 2007:
Hello Tom,
Well a place with all the facilities, like in this post, Internet connection which will help them with communication and study, bus stop right outside will help them reach places in time and pizza place on the ground floor wow they will love it….
Comment by Tom on 28 February 2007:
I know I would have in college.
Comment by Austin Real Estate on 28 February 2007:
I dont know if this is a sure bet. If the campus decides to increase the amount of on campus housing you could run into trouble. Also students tend to stay at places for shorter periods of time so an owner can spend alot of money on make readys and advertising.
Comment by StudentRent on 14 November 2007:
Off Campus student housing can be a great investment especially if you take care to maintain the the property and set clear expectations of the renters. Rentals near campus often fetch higher lease terms and require less detailed maintenance. Also, instead of installing and replacing high quality carpet every couple of years, try pergo type flooring which can be less expensive, hard to stain and gives an upgraded aesthetic. Be sure to take advantage of inexpensive online advertising!
Comment by Steve in Michigan on 9 April 2008:
If you do not have a house in or near Big Rapids your student will be charged the following rate for housing!
FSU Room and Board (19 meal plan) $7646.00
If you divide this by the 9-month school year it equals $850.00 per month.
If your student stays in FSU housing for 4 years this equals $30,584.00
If you own a home in Big Rapids your student can live off campus immediately, “BUT” you have to show this address as the student’s home address when he or she applies to FSU.
I have a property in Big Rapids that I would like to sell. We purchased this property for family members attending FSU that have now graduated. This property is leased through August of 2009 for $1,000 per month. Tenants pay all utilities.
Asking Price is $110,000
A 30-year mortgage at today’s rates are below:
7.00% = $731.83 6.75% = $713.46 6.50% = $695.27
This rental unit is four bedrooms with three baths and is located several blocks from FSU. Appliances have all been replaced within the past three years and there is plenty of paved parking. Property was renovated in 2002. We lease to one student and that student sublets rooms to three other students. We receive our rent check and we pay only mortgage, taxes, insurance, and summer lawn maintenance.
If you are interested in saving dormitory costs, you must use a Big Rapids address as your student’s home address when they apply to FSU.
If you are interested in this house please contact me, Steve Pearsall at alaskan@chartermi.net
Comment by david doumar on 14 September 2008:
what is location of property to campus, is it still available? any add’l info?
Comment by Todd Covington on 19 December 2008:
Buying a home when you get to college or buying it for your son/daughter is a home run. I watched several parents do it for college friends of mine. You would not believe how much money these parents were making in a 4 or 5 year span. The funny thing was it was always the parents who were wealthy from previous good investments. The rich get rich is so true. I know, I know, times are tougher now. While they are tougher, I’d love to see one person who things housing prices won’t go up in 4 to 5 years.