Whether you’re a recent grad who happens to be familiar with the area, or a savvy investor who’s got an eye for the real estate market, investing in a college town can be a great way to make money. Assuming the school is doing well and the enrollment is on the rise, which it typically is in most such communities, then students will constantly be looking for places in the area to live.
When the market gets tight, the prices will go up. This makes for a prime market experience for real estate investors who have properties in the area. But before you go and invest in the run-down house that you lived in over your four years of college, study the following tips to make sure you select a worthy investment.
Location, location, location
In college towns, there are going to be a few key neighborhoods that are most likely to be highly sought by tenants. Obviously, you’ll want to check around the edges of the school itself. Many students enjoy living close to school, knowing they can get to class quickly and possibly save money on gasoline and a parking pass by simply walking or biking.
Another popular location is in the lively downtown areas. It’s here that many college students will come for bars, eating out, and work, and makes it a desirable area to settle as well.
Finally, if your college town hosts a football stadium that’s off campus, the market around that area is likely to be in high demand as well. If you can find an investment property in any of these neighborhoods, you’re likely to find a demand for housing in the form of individuals looking to rent your property.
Enrollment stability
College enrollment has been rising around the nation for the past decade. Most high school graduates know that going to college is the best way to get onto the career path they desire.
However, this isn’t something that’s automatically happening at every school in the nation. So you should be sure to check the enrollment rates at the particular university or college(s) that inhabit the college town you are interested in investing in.
These records are available to the public and will give you a better idea of the future fortunes of the school. Universities with a healthier looking future will offer greater financial longevity for your investment.
Tenant tips
If you have a great property in a popular part of town, you’re likely get tons of calls from people interested in renting your place. In order to ensure that your investment is safe and will survive in good shape into the future, you’ll have to screen all the potential candidates diligently.
This will help you avoid problems that could seriously harm your financial standing.
Investing in property in a college town has tons of potential benefits. But in order to assure that this strategy has the strongest potential of working out, keep the tips on the above list in mind and you’ll find the perfect investment property.
