Buying investment property in DC college town

[Anonymous]

Has anyone else bought an investment property in your child’s college hometown? We use ours instead of staying at a hotel for football games as well as an AirBnB at other times. Hotels jack up the rates so much for move in and move out as well as football and other weekends, it just made sense. We may turn into a college rental (there are prop management companies) after he graduates.

We caught the market just before it has gone crazy.

[Anonymous]

You mean like GMU?? Fairfax,VA??

[Anonymous]

Anonymous wrote:Has anyone else bought an investment property in your child’s college hometown? We use ours instead of staying at a hotel for football games as well as an AirBnB at other times. Hotels jack up the rates so much for move in and move out as well as football and other weekends, it just made sense. We may turn into a college rental (there are prop management companies) after he graduates.

We caught the market just before it has gone crazy.

I thought about (both our kids are at the same college so we have 6 years of visiting) but didn't want to take on the work of managing a fourth property.

[Anonymous]

Not as an investment property, but for our own kids to live in. From the posts on the parents facebook group, it is very common at their school. It's not in the DC area and you can buy a decent place for less than $250,000.

[Anonymous]

If kid wants to go there for grad/professional school as well or younger sibling also plans to go there then yes. Just for one kid’s 4 years, not worth it.

[Anonymous]

As much as you think you’ll be visiting your kid’s school during orientation, it’s much less in reality unless kid doesn’t grow up or you are an alumni and want to attend football games, reunion weeks etc. It doesn’t make much sense for a parent to get too attached to your young adult’s school.

[Anonymous]

One friend bought a condo for their eldest thinking he’ll there for med school as well and other siblings will go there as well. He went to a med school in another town and one sibling didn’t get accepted while other went to an Ivy. They rented it out for a year then sold it at without much appreciation. Their realtor’s commission ate up their appreciation.

[Anonymous]

Anonymous wrote:One friend bought a condo for their eldest thinking he’ll there for med school as well and other siblings will go there as well. He went to a med school in another town and one sibling didn’t get accepted while other went to an Ivy. They rented it out for a year then sold it at without much appreciation. Their realtor’s commission ate up their appreciation.

If the town was anything like the college town where my kids live, they at least avoided dealing with scummy slum-lord type landlords. Also, if they at least "broke even" on the sale between appreciation and the realtor's fees--that's better than completely throwing away rent money each month.

[Anonymous]

With dual enrollment, our kids entered as a junior and sophomore and were not required to live on campus. We bought a three bedroom three bathroom condo in the college town. Our kids lived there when they attended. It gave us a place to visit for football games, we are alums and we avoided paying rent. We now have a management company that handles finding student tenants, handles maintenance, etc. We make only $100 a month or so on it after fees, mortgage, etc.

The only downside is due to the fair housing act, we cannot limit it just to students and one year two students had to live with a non student who was much older, but it worked out.

[Anonymous]

Georgetown.

Yes. We didn’t sell our small rowhouse we bought in 2004.

One plans to play a sport there.

[Anonymous]

Geez OP, how often do you plan to visit?

[Anonymous]

It's called a kiddie kondo where I bought mine. I love it and intend to retire there.

[Anonymous]

Anonymous wrote:

Anonymous wrote:One friend bought a condo for their eldest thinking he’ll there for med school as well and other siblings will go there as well. He went to a med school in another town and one sibling didn’t get accepted while other went to an Ivy. They rented it out for a year then sold it at without much appreciation. Their realtor’s commission ate up their appreciation.

If the town was anything like the college town where my kids live, they at least avoided dealing with scummy slum-lord type landlords. Also, if they at least "broke even" on the sale between appreciation and the realtor's fees--that's better than completely throwing away rent money each month.

Homeownership has its own stress and expenses.

[Anonymous]

If you buy for less than 6 years it's almost always better to rent and invest your money in a diversified portfolio.

[Anonymous]

Anonymous wrote:If you buy for less than 6 years it's almost always better to rent and invest your money in a diversified portfolio.

Come to think of it, that's only if you absolutely need a place to live. Investing in a diversified portfolio is always a better investment than a house lol