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How do I choose a college rental investment?
What are some parameters for choosing an investment property at a college? We're just starting our search and aren't totally sure on how to choose a college that would have good rental terms.
Asked By Maggie | Bloomington, IN | 145 views | Investing | 4 months ago
Answer(2)
Lisa and Greg Harris
eXp Realty, LLC
1ST - reach out to a local REALTOR who knows the market! The Specifics of the market you are looking to buy in for an investment may vary greatly! So Trust a professional! The next part is deciding what makes the most sense for the budget you want to stay within and what the market stats are showing for the rental properties that are renting and available. This will all depend on what your goal looks like..... Holding for long term, or just long enough to get your own child through school and then sell....
- 4 months ago
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Gregg Lindsay
Luxe Living Group
Choosing a College Rental Investment
**Location**: Proximity to campus is key. Students prefer living close to classes and campus facilities. Look for safe neighborhoods with amenities like grocery stores and public transportation.
**Property Type and Condition**: Multi-unit properties like duplexes or apartment buildings offer higher rental income potential. Ensure the property is in good condition or budget for renovations to attract more tenants.
**Market Research**: Research rental demand and average rental rates in the area. Universities with growing student populations or limited on-campus housing often have higher demand for off-campus rentals.
**Financing Options**: Explore different financing options, including conventional loans and investment property loans. Consider down payment requirements and interest rates, as lower rates can significantly impact your ROI.
### Positive Reasons for Investing in College Rentals
**Steady Rental Income**: College rentals often provide a steady stream of rental income due to consistent demand from students.
**High Occupancy Rates**: Properties near universities typically have high occupancy rates, ensuring minimal vacancy periods.
**Potential for Higher Rents**: High demand allows for higher rents compared to non-college rentals. Renting by the room can increase overall rental income.
**Long-Term Appreciation**: Properties in college towns tend to appreciate over time, contributing to rising property values.
### Return on Investment (ROI) When Selling
**Increased Property Value**: Well-maintained college rentals can significantly appreciate in value, providing a substantial return on your initial investment.
**Attractive to Investors**: College rentals are attractive to other investors due to their steady income and high demand, leading to a quicker sale and potentially higher selling price.
**Tax Benefits**: You may be eligible for various tax benefits, such as deductions for mortgage interest, property taxes, and depreciation, enhancing your overall ROI.
**Exit Strategy**: Having a clear exit strategy, such as selling at a peak market time, can maximize your ROI. Consulting with a real estate professional can help determine the best time to sell
- 1 month ago
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