Investing Near Universities

I often read success stories where the investor stated that what seemed to be a case of exceptionally good luck with a very profitable deal was nothing more than a case of preparation (education) meeting opportunity.

On a side note, have you ever considered sending your investment properties to college? It seems that houses, as well as people, profit from a college education. I have read several success stories talking about profitable student housing markets. Research validates this suggestion.

Housing in close proximity to four-year universities tend to hold value better than property in other parts of the same town. The rent is also higher because you can put more tenants in the same property. (There is a caution about screening the tenants carefully and requiring higher security deposits plus a first and last month's rent, but the value is definitely there.)

There are additional advantages for the real estate investor working a college town. College students tend to earn substantially more in their lifetimes than their non-college-educated counterparts. As each tenant graduates, they are prime first-time home buyers as they enter the job market. A trusted landlord who is a successful real estate investor can become a valued resource to the new home buyer, especially one who is adept in investing nationally.

Profitable deals are also found in flippers located near universities. Students owning property are often eager to unload their properties when they graduate and there is always a ready market of new students and of retiring alumni who tend to return to the town of their alma mater in goodly numbers.

Reports show many alumni return to their college town to retire due to the availability of good research libraries, art, music, plays, and other social amenities and the nostalgia that "their university" has to offer. College towns are definitely worth checking out.

I would like to thank Karyl D. for submitting his success story:

I am in the Mastery Program and have been attending Bootcamps, learning all I can in as short a time as possible. I finally got enough education under my belt to test the waters. I had been looking at a lot of properties and was honestly just too scared to do anything.

I have a wonderful realtor in Detroit who has been sending me foreclosure properties. I finally sent him several properties that I was interested in. He went to them and took pictures, then called me and said that this one was a beauty. It is located in the University district, each unit is 1200 sq ft and it was a perfect location. It was going for $39,000 I told him to offer $13,000. He said that might be a little low, but he did it.

They countered at $15K. I was thrilled, he was thrilled and I took it. It is $25,000 to rehab and the median rent in the area for 2-bedroom units is $800-$850, so it will be easy to get $750 for each unit for this large a unit. I funded it with my HELOC. I intend to rehab it with my HELOC then refinance, pull the equity and do it again. I am on my way!!!