I am a new investor with good credit, good income and cash to buy a rental property. I have located two excellent locations to buy my first investment; one is a college town and the other one is not.
If I buy a three bed room house in a college town, to me that I have to work and spend money (show the house, verify credit, advertising, etc) three time more versus the other location. Found one student, then have to find another one, and then another one.
If I buy a three bed room house in the other location, once I find a good tenant then the work is done.
Am I correct? Please help. Thanks.
<If I buy a three bed room house in a college town, to me that I have to work and spend money (show the house, verify credit, advertising, etc) three time more versus the other location. Found one student, then have to find another one, and then another one.>
You are making an assumption that in a college town you can only rent to college kids. There are also administrators, professors, etc. that need housing. Also, you can lease to one student and put the onus on him/her to find the other two rommates (make sure that you have some rules in the lease for how many, etc.). Often you can get a parent to co-sign the lease for added security.
Are there other attractions/businesses in the area? Hospitals, military bases, etc…
if you rent to college students; just rent the whole place under one lease with three names (and co-signers as needed). Putting people in one-by-one is doing it the hard way and asking for trouble between roommates. Three people living together who know each other much better than 3 strangers.
And don’t forget - Those college kids like to Party - I know I was one once…LOL
Take a hefty security deposit and have parents co-sign if ya can.
Hell we even damaged the dorms.
KEC