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College Towns – Investors Smiling on Their Way to the Bank

August 18th, 2011 | posted by dgadmin2

It’s back-to-school time, and what better time to do a survey of real estate rental opportunities in areas with colleges and universities? One new survey used current mortgage rates, a 20% down payment, 30 year mortgages and area rents to come up with the top 10 college towns for real estate investors.

City /Avg 2 BR Rent/Avg 3+ BR Rent/Avg Mtg Pmt
Boston, MA $3122 $3913 $1370
Nashville, TN $949 $1020 $770
Chicago, IL $1780 $2074 $820
Washington $3086 $3214 $1530
Houston, TX $1218 $1478 $710
South Bend, IN $790 $880 $460
Atlanta, GA $1236 $1485 $650
Baltimore, MD $1443 $1663 $990
St. Louis, MO $1016 $1283 $670
Syracuse, NY $838 $970 $630

Boston is at the top, even with the highest median price for a home. This is due to the strong demand generated by students at more than 50 area colleges and universities. Rents are currently rising there.
Another article just out indicates that many colleges are seeing an avalanche of applications and higher enrollments. It’s a tough year to get into a good school, as applications are way up with some schools even packing students into housing with tighter quarters.

If you are investing in an area with one or more colleges or universities, this is all good news. Even trade schools and cooking and chef training academies are seeing increased demand.
 

On 20:17pm, August 18th, 2011 Valiant said:

Great Info

Valiant's picture

I was looking at colleges around my area and there is a hugh demand for addition rental housing. In fact, colleges in this area lack sufficient dorm space and are therefore encouraging investors to provide addition rooms for incoming freshmen.

By the way, what are the three columns for? Where did you find this article?

Thanks for the heads up.

Leon J

On 3:34am, August 19th, 2011 midwest_invest said:

While on this topic...

midwest_invest's picture

We are in the market to acquire a 60 unit apartment complex in a small community with 2 private colleges. We want to make this property exclusive to college students by working with the colleges themselves.

Does anyone know how to set up an agreement with colleges for this purpose? Has anyone ever approached a college with this intention?

This would be a great deal if the college was on board. Any suggestions or insights would be appreciated!

On 4:13am, August 19th, 2011 jade_east said:

Reading the columns

jade_east's picture

@ Leon:

The information in the columns follows the categories listed in the heading above them:

City /Avg 2 BR Rent/Avg 3+ BR Rent/Avg Mtg Pmt

Looks like MD could be a good place; maybe you could arrange for an apartment in one for yourself and also be the on-site manager.

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