Who are these people of means who are considering or currently doing these real estate deals? It’s not just the mega-wealthy (which by the way is how they likely became mega-wealthy), but it could be your next door neighbor, or even a college student. A college student?! Is your face burning red? How can a college student be a savvy real estate investor? Don’t they have crazy student loans to pay off?
College student housing is for the most part, below most adult standards. Drafty, inefficent windows, worn carpet, worn wood floors, crackling ceilings, and tiny rooms are common in off campus housing. A tiny kitchen with dated appliances and a what-is-growing-in-there bathroom may come with the deal. What’s the kicker here? The landlords charge a stiff price on a property that is likely paid off 20 + years ago when they bought it, and have no interest in making updates. So what are savvy real estate investors doing? They’re heading to the top 100 college towns and buying up these crummy houses to rent out to college students. The truly savvy investors are cleaning up the properties to lure better tennants, and thereby protect their investments. The college students who grew up with money savvy parents recognize a bargain and a real opportunity when they see one and can find money to get into off-campus housing with specific loans geared towards students. All they need is parental consent, good credit (them or the parents), be a student, and a much smaller down payment than the average home mortgage. Call your local mortgage broker for more information on this program and to talk details. They can best guide you through this process and make sure all the i’s are dotted and t’s crossed.
Off campus housing 10 years ago at a small school cost about $400 a month plus utilities. Sounds like a screaming deal now doesn’t it? Off campus housing at a top 100 college town cost about $900-1500 a month plus utilities. It makes sense for parents or students to want to own property near campus. For one, the student can rent it out to roommates and the mates will pay his share of the mortgage/total rent. Secondly, the student understands it is part of an investment for them, so respecting the property, keeping it clean, and taking care of any issues in a timely manner will make them even more invested in the property. The pride that comes with home ownership lacks a good word, you simply feel it. Parents can also take a chance and get a second property (again, going back to Part 2 about rental properties), and rent out the house to their child(ren) and roommates, saving the expense of room rates if the student were living on campus and the parents paying the way. At the end of the student’s tenure, as owners may decide to sell the property, or hold on to it for future students continuing to grow their wealth through the property.
About the Author: Kelly Young, GRI
- Author's website: www.sellmyhomeincoloradosprings.com
- More posts by Kelly
- email the author
Kelly is an Associate Broker with Red Rock Realty. She has over 12 years experience in Real Estate in the Colorado Springs and Front Range region of Colorado. She represents buyers and sellers of real estate buying homes, land for sale, mountain getaways. Specific areas include: Black Forest, Broadmoor, Colorado Springs, Divide, Falcon, Downtown, Manitou Springs, Monument, Old Colorado City, Westside, Woodmen Hills and Woodland Park. You can reach her at 719-226-0126 or by clicking "email the author" above.
