5 Reasons To Buy Rental Housing Near a University

It may not be time to go back to school, but that doesn’t mean you shouldn’t be frequenting college campuses. These property gold mines are profitable and sound investments and, depending on your location, can be more than affordable. For instance, I have several East Lansing, Michigan rental houses listed, just blocks away from Michigan State University, that are priced under $200,000 and two that are priced below $150,000. For homes that rent in upwards of $2,000 plus monthly, that can work out to be a very good investment.

According to a recent article by Ann Brenoff published on AOL Real Estate, college housing investments have thrived while most other housing markets have declined.  Brenoff cites increasing college enrollment that is not coupled with growing housing options, thus creating an opportunity for property owners to cover their mortgage and see some positive cash flow.

This isn’t an investment strategy for seasoned veterans only. Many parents of enrolled students and students themselves have begun to purchase property near their universities. For instance, Zac Bissonnette, a 2011 graduate of the University of Massachusetts, bought his first near-campus investment property his freshman year of college and his second year bought another one. He found that he easily covered his condo payments and had additional money to spare.

5 Reasons to Buy Property near a University

• Large population of potential tenants (students) for the foreseeable future.
• Students generally don't pay for their rent; their parents do, which increases the likelihood of timely, consistent payments.
• If your child attends the university, an expensive rental payment is alleviated and you can make money!
• Housing near campuses attract more than students. Think professors and university staff.
• University towns often have a lot of appealing amenities, which helps keep property values stable. For instance, in East Lansing we have an amazing variety of ethnic restaurants, great eclectic shops and a myriad of fun venues to check out.

East Lansing, MI