College condo… Are you thinking to yourself “why am I going to pay rent or huge dorm room fees when I can purchase a property that can later be converted into a great rental investment?”
Well you are not alone. Many parents of Vanderbilt, Belmont, Lipscomb (and other local colleges) students buy properties ( or a college condo) that their children can utilize while they attend school and then turn them into investment rentals!
If this is something you are considering make sure to ask yourself these questions!
What does the local market look like right now? What are home values and rental rates? The best way to learn more about the local market is to reach out to a local agent (we happen to know a few good ones). Also do some at-home research by looking at currently available rentals the amount of inventory and rental rates.
What is the cost going to be for your child to rent or live on campus? Figure out your budget. What will it cost for on campus living or finding a rental in the area? You may be shocked of the amount of money you may save actually purchasing a property (obviously this is case by case and differs between each university).
What is your monthly budget? Make sure to allocate a cushion of unknowns. For example a water heater going out? AND these are college students.. lets be honest there will be some issues..do you remember college?
How long will your child be living in the home? And the area. Does this seem like a long term situation or could it change quickly?
What kind of property are you thinking about? Single Family Versus Condo? Weigh them out. Either way make sure you are aware of all of the restrictions the associations have and make sure you can rent out as you are planning.
Are there opportunities for extra income during your child’s time there? For example some parents are not only able to make money in the future, many are making their mortgage back plus during the duration of the 4 years. They do this by having their student have roommates (usually fellow college students/friends) who contribute rent. Also, is your student going to be staying during the summer or winter breaks? Is there an opportunity for short term rentals? Can you Airbnb the property? Look into local permit options for that. These opportunities are also things we at Nashville on the Market can help you figure out!
Final Thoughts
Now if you think this may be a good idea for you – reach out to us! We love helping parents find the best property for their children’s time in school that will perfectly transition into a great long term investment! Contact us at lisa@nashvilleonthemarket.com or 615-310-8661 and we will be happy to help you make the best financial decision for you and your family!
xoxo,
Lisa Stigliano
Realtor and Co-Owner
Nashville on the Market Real Estate
Local Nashville Real Estate Professional
College Student Property Expert 🙂
