Is this a stupid idea?
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In 2 years, Luke’s going to be living off campus for a year as the school he’s at doesn’t have enough dorm housing for seniors and as the school continues to grow, that will spread into the juniors as well. We’re currently spending about $12K a year on room and board.
Houses are currently renting around the campus at about $800 per bedroom and 3 bedroom houses are selling for roughly $200K. Would it be completely stupid to take the room and board we’ll be paying that year anyway and put it and a bit from savings as a down payment? Mortgage would be about $1200, so $800 per month for the other two bedrooms would cover the mortgage and utilities. After Luke graduates, that’s 3 bedrooms at $2400 per month, now you’re covering maintenance…
Now college kids, yeah, I get it, but I can trust Luke for the one year, and keep the rental restricted to Seniors going forward… Get 5 years appreciation and sell…
The Brad
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"College kids."
When we moved to the condo, the market was bad, so we rented the house to a family.
Never, ever, want to be a landlord again.
We did have a management company (that collected 10% of the rent we got) but they were less than helpful.
Think of the maintenance: things break, lawn care, snow(?).
Nope, not for me.
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Had a good friend with carpenter skills buy a fixer-upper in Baton Rouge and his daughter lived there while attending LSU. Depending on the semester, they rented out one or two bedrooms, but it eventually came down to just one of his daughter's friends as a renter.
He did pretty well when he sold it.
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I am kind of with @George-K on this. Plus, college kids (worldwide) seem not to be the best tenants as they dont really have any interest in maintaining property, etc.
I have a friend who had multiple kids and they all went (kind of forced) to go the same college. They bought a townhouse close to campus and that seemed to work as the kids went to school, but that was pretty specific to having multiple kids.
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In 2 years, Luke’s going to be living off campus for a year as the school he’s at doesn’t have enough dorm housing for seniors and as the school continues to grow, that will spread into the juniors as well. We’re currently spending about $12K a year on room and board.
Houses are currently renting around the campus at about $800 per bedroom and 3 bedroom houses are selling for roughly $200K. Would it be completely stupid to take the room and board we’ll be paying that year anyway and put it and a bit from savings as a down payment? Mortgage would be about $1200, so $800 per month for the other two bedrooms would cover the mortgage and utilities. After Luke graduates, that’s 3 bedrooms at $2400 per month, now you’re covering maintenance…
Now college kids, yeah, I get it, but I can trust Luke for the one year, and keep the rental restricted to Seniors going forward… Get 5 years appreciation and sell…
@LuFins-Dad It would likely be a good deal if you can consistently get $2400/month rent from a $200k property. The thing with student housing is that you may not always get a 12-month leases from student renters to fell all three bedrooms year round. Be careful to factor in property tax, condo fee or HOA fee, insurance premiums, the local township’s rental permit/inspection fees (if any), add these on top of your expected mortgage payment to get a more realistic cash flow estimate. Good luck!
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In 2 years, Luke’s going to be living off campus for a year as the school he’s at doesn’t have enough dorm housing for seniors and as the school continues to grow, that will spread into the juniors as well. We’re currently spending about $12K a year on room and board.
Houses are currently renting around the campus at about $800 per bedroom and 3 bedroom houses are selling for roughly $200K. Would it be completely stupid to take the room and board we’ll be paying that year anyway and put it and a bit from savings as a down payment? Mortgage would be about $1200, so $800 per month for the other two bedrooms would cover the mortgage and utilities. After Luke graduates, that’s 3 bedrooms at $2400 per month, now you’re covering maintenance…
Now college kids, yeah, I get it, but I can trust Luke for the one year, and keep the rental restricted to Seniors going forward… Get 5 years appreciation and sell…
@LuFins-Dad said in Is this a stupid idea?:
In 2 years, Luke’s going to be living off campus for a year as the school he’s at doesn’t have enough dorm housing for seniors and as the school continues to grow, that will spread into the juniors as well. We’re currently spending about $12K a year on room and board.
Houses are currently renting around the campus at about $800 per bedroom and 3 bedroom houses are selling for roughly $200K. Would it be completely stupid to take the room and board we’ll be paying that year anyway and put it and a bit from savings as a down payment? Mortgage would be about $1200, so $800 per month for the other two bedrooms would cover the mortgage and utilities. After Luke graduates, that’s 3 bedrooms at $2400 per month, now you’re covering maintenance…
Now college kids, yeah, I get it, but I can trust Luke for the one year, and keep the rental restricted to Seniors going forward… Get 5 years appreciation and sell…
I would be looking for a 2 bedroom, ground floor condo about 5 to 10 miles away from the college.
