Student Housing Investment - Getting Started in Student Housing Investments

http://www.REIClub.com - Student Housing Investments Are Rising In Popularity. Here's How Real Estate Investors Can Get Started In Student Housing Investment... Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I've got quick video on investing in student housing. According to the National Center for Education Statistics, college student enrollment will continue to increase through 2019. As long as there are colleges and universities, there will be a need for student housing. If you live in a college town or near a university, rental property for students may be the perfect investment for you. If you have kids who are about to go to college, or already IN college, I highly recommend looking into investing in a home, condo, or townhouse they can live in. Why pay rents to someone else, when you can eventually have someone else pay-off your mortgage FOR YOU? Student Housing Investing - Choosing Location - Focus on college towns where the university IS the city - Market Research - Is there high construction or growing listings - means best investments are probably in highly competitive and priced areas - Are rents on the rise in areas you are interested in? Appreciation? - Southeastern and southwestern states - higher enrollment - Northeastern schools - enrollment caps - Look for schools with low bed to student ratio - forces off-campus living - registrars office - Avoid investments near private universities - Housing restrictions - How far is the property from the school? Walking distance? - How close is it to the university or city bus stops - What would you want for your own kid? Grocery store, Laundromat, hospital, etc... - Contact Real Estate Investment Trusts that focus on student housing - shareholders and dividend yield without having responsibilities of ownership. - Location can mask property drawbacks Student Housing Investment - Renting to College Students ***May be renting to people are living on their own for the first time. - Consider co-signers - parents - Keep it professional - you are not their parent - Have written, signed agreements and leases - everything needs to be documented - Be clear and concise about every detail - don't leave it up to "common sense" - How to work the thermostat, changing air conditioning filters, trash days, etc... - Be very clear about rents and responsibilities - suggest a house master - collects all rent, deals directly with landlord. - Go over lease expiration dates, renewal periods - House Parties Discussion - Charge a higher security deposit - Adjust rent considering extra maintenance - repainting, replacing carpet Student Housing Investors - Investing as a Parent - Co-signing - Buying with an FHA loan - allows students or non-students to purchase a home with an assist from a blood-relative's good credit standing and cash. - In addition to not having to deal with dorm-life, the owner-child benefits from building a credit history, having a place to live, and potentially assuming the responsibility of being a landlord to their roommates. The student housing market provides an excellent rent return on investment. A home that might rent for $1,000 a month to a single family could be rented by the room for nearly twice that. The rapid growth of university enrollments in the United States has bolstered occupancies around the nation, and With heightened economic demand for advanced skills and knowledge, more high school graduates are attending full-time colleges. Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing http://www.youtube.com/watch?v=AS8DiHkzsB0

Comments

1. THANKS FOR THE VIDEO
2. Hello,
   I am an 18 year old college student looking to start setting my foundation of knowledge for student housing investments. From speaking personally to many student in Chester County & Philadelphia County in PA as well as Syracuse NY, it is common for landlords to keep the security deposits whether there is a violation of the agreement or not. Is this common throughout the United States?
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4. Thanks for the video. How much should we charge college students?
5. oops, "Phil"...typo
6. Phi, if u check in....the maintenance costs. It depends on some things, 1. size of the yard 2.Exterior (brick, Vinyl siding or paint) 3.number of bath rooms, 4 size of the house. 5. Central air, etc But my history is anywhere from $300/mo to$ 425/mo. average for a 5-6 bed, 1400-1900sf place.  This is based on doing most the work yourself, but does include prorating long life item (roofs, water heaters, etc) and the higher turnover costs related to students. It also includes a snow removal service and lawn cutting service and furniture replacement. Maximize the number of bedrooms and minimize the square footage. rent is based on the number of bedrooms, while maintenance, taxes, insurance and size of the party is based on SF. My best cash cow is a 1450sf house on a 2300sf lot, but has 6 beds and 4 full baths in it, in an A+ location, remodeled (very nice, granite, etc) with Rock and Roll history.........rents for almost $6K/mo. (12 mo lease) and literally rents out before I even know it will be available for the next year.(a current tenant will tell a friend it will be available, before I even know, next year and they call me about wanting it for next year, signing a  12 months before moving in it).
7. I own many and for awhile now. This guy has the basics down pretty good, but the only way you will really learn it is......... "just do it" (as the kids say). But do be careful, not every University area is the same. I own many at one University and one at another University (only 12 miles apart)....almost  a big difference between them as far from both a long term investment and quality of renters....best to .go where it is difficult to get in the school and expensive to attend. 
8. 0:00 Check out that smile!
9. That is a great tip but some people don't have the money to buy a house. Another way to gain with student housing is renting your extra bedroom you already have. 
10. Very helpful video.
11. If you use a student property management company they will assures your rental income and take care of the maintenance costs and hassle.
12. Yes that is true but if you use a student property management company or via the university accommodation office you can secure tenants over the summer holidays and out of domestic term time as the property or rooms will be rented to summer students normally from overseas meaning you can achieve near on 100% occupancy
13. Good video on a very topical subject.In my experience nowadays a growing number of investors are capitalizing on this asset class but with out the actual hassle of finding a suitable property, refurb, finding student tenants etc... they opt for purpose-built accommodation either on the University campus or very near, fully managed with assured income. A growth market here in the UK, I'll post a video showing a typical UK student property investment opportunity which will explain further.
14. great tips-- as always -- you're a big help to our industry.
15. This is an idea for real estate investments I am involved in and I can say it can be quite profitable
16. I'm very interested in this idea---a student housing investment--I can see where the cash flow would work.
17. I think that is a good question. Is this an area where there might be more maintenance costs--because how responsible will this type of tenant be……?
18. When considering cash flow--do you have a recommendation how much you should have extra to cover maintenance costs?
19. hmmmm student housing investing sounds like an idea worth further research. Thx