Purchasing real estate near a university has its pros and cons. This is true of any housing market, but college town real estate is a very particular type of market. It’s important to note that there is definitely a lot of money to be made, but you should also know that there are a lot of ways to get burned. This means that you really need to know what you’re doing, and having WSU’s MBA degree might help you with that, but it won’t be enough to prepare you for the business acumen that you’ll need for this type of investment. You will need to do a lot of research, and it couldn’t hurt to hire a financial advisor who knows a thing or two about college real estate as well. Here’s a few things you should know before you purchase real estate near a university.
Know the Reputation of the University
The first thing you want to look into is the reputation of the university. You don’t only want to know the academic reputation of the school, but you also want to know what kind of reputation the student body has for partying. For example, if you are looking at real estate near Kent State University, you will want to make sure that the academic standards are high and the party reputation is low.
Decide What You Want to do with the Property
The return on your investment is going to completely depend upon what you want to do with the property once you buy it. Are you going to flip it? Are you going to live there? Or are you going to rent the property? If you do decide to rent, you need to decide if it will be a rental property for undergraduate students, graduate students, or college faculty. If you decide to rent to undergraduate students, then you will need to keep a close eye on the property and it isn’t a bad idea to hire a property manager.
Research the Turnover Rate in the Neighborhood
If you plan to flip the property, or even if you decide that you want to rent it out for a while and then sell it, you will want to know how long it will take to sell. A good gauge of that timeline can be determined by looking at other houses that have recently sold on the same street or at least within the same neighborhood. If the turnover rate is rather long, then it’s definitely not a wise investment.
Give the House a Full Inspection
Finally, before you buy any property, you want to make sure that you give the house a very close inspection. Everything from the plumbing, to the electricity, to the foundation should be thoroughly inspected by professionals. It’s also imperative that you have the house inspected for mold and mildew. A lot of college students underestimate the importance of using ventilation fans in the bathroom, and before you know it, the entire house could be rotting from the inside out.