Becoming A Landlord? 5 Reasons To Invest Near A University
Do you want to get into real estate investing as a landlord? No matter which part of the country you plan to buy in, property near a college or university is often a great place to start. Why? Here are a few of the best and most profitable reasons.
1. Demographics Do Not Change. An established university serves the same general population type every year, so you know what your rental demographics will look like for the foreseeable future. If you plan your rental purchase with this in mind, you will gain experience working with the same pool of tenants each year.
2. Funding Aids Are Available. College students may not seem like the most financially stable pool of renters, but remember that they have access to a variety of funding sources. Many students who live off-campus see their rent paid by their parents. Others use financial aid to cover their housing and daily living costs. Both of these can be very stable sources of rent payments.
3. Students Are Not the Only Pool. While landlords usually think about the students as their primary pool of renters, do not forget about the rest of the college community. Along with students of all ages and family situations, you can also rent to teachers, researchers, administrative staff, and other business owners who cater to the same university population.
4. The Property Will Appreciate. A well-attended university with a good reputation helps neighboring communities and businesses rise in value. This, in turn, helps your rental appreciate faster. One of the benefits of real estate investment is that you have two sources of business income — tenant payments and the rise in value when you sell your capital asset.
5. You Can Choose Housing Types. Do you want to start with a single-family home? What about doubling your potential with a duplex? Or perhaps you want to eventually move up to multi-family properties. Whatever your landlord goals, college areas offer a variety of choices. Unlike suburbs populated by nothing but single-family homes or downtown areas with nothing but apartments, college areas provide landlords with many opportunities.
Want to learn more about investing in real estate in your local college community? Contact a local real estate agent. They will help you assess the potential for rental units in the area and find the right path for your landlord goals. Make an appointment with one of these experts today.
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