College Town Real Estate

Here is an interesting article from Yahoo!Finance on the appeal of real estate in college towns.

It just so happens both of the houses I own are in very close proximity to local major universities (within 1 mile). I think the long term prospects for both of my properties is great although the markets seemed to have been more muted during the housing boom of the past few years.

The appeal to me of college communities is the huge pool of potential renters and resulting low vacancy rate. I have been very happy with the performance so far on my rental property.

A common concern I've heard about investing in college rental property is the potential amount of damage/destruction to the property from the tenants. I mitigate this risk in my tenant screening process - so far I have only rented the property to graduate students and young professionals.


Related in Real Estate:

No Closing Cost Loan Example (Nov 29, 2012) I've gotten multiple requests to clarify the recent no closing cost refinance loan I just completed. Its a bit of a vague term and could be done different ways, but the end result is that there are no out of...

3.5% 30 Year Fixed No Closing Cost Refinance (Nov 27, 2012) We finally closed this week on our 3.5% 30 year fixed refinance with no closing costs (no closing costs = a credit from lender/broker large enough to offset refinance costs). It took us over 2 months (67 days from initial...

Appraisal Appeal Unsuccessful (Nov 05, 2012) Not much of a surprise, the appraiser dug in and didn't budge after we submitted our appraisal appeal: Our more favorable comparables were based on county property records. Interestingly the appraiser indicated the MLS data is generally considered more accurate...

Comments (2)


2Million,

Do you manage the property yourself or do you have a property manager?
If you do have a ppty mgr, how much do you pay him? Also what %-age of your gross rental income goes to maintenance on average?

Thanks a lot for your answers!

DGI, Yes I manage the properties myself. However since I am currently away on assignment I did hire a property manager for 1 property and worked out an agreement with the other property. When we return I will manage both properties myself.

As for % of gross rental goes to maintenance - great question. Do you mean actual or planned/allocated? So far actual has been low (maybe $20/mo per property), but thats because I haven't had any big ticket items (roofs, HVAC, etc). Over the longer term I expect it to be higher.

Post a comment

(Comment moderation enabled.)

About 2millionblog.com

A personal finance weblog of my journey to reach my goal of $2 million + the value of my primary residence.
Current Net Worth: $1,574,185

Sponsors

New Personal Finance Articles




PF Blogs