Many families have High School Seniors who graduated and are now leaving for their first year to college. To save money on room and board some of the parents decided to buy a second home for their student to live in and later to use as potential rental.

With every investment you need to do your due-diligence prior to considering buying.

When the intention is for your student to move into the house and you have no rental income coming in, can you afford making the additional mortgage, insurance, and utility payments? Your student will still need food, and who is going to be on call when the toilet is plugged up or other repairs need to be made?

Many times some of the schools have the rules that a freshman needs to reside on campus in dorms for their first year and is not allowed to move off campus until their second year of school.

Investing in real estate in a college town was a well-kept secret for many years and in time it became a desired investment in many real estate investors portfolio. The reasons are obvious, the schools are not only providing a steady stream of students who would like to move off campus but the schools have many employees who are on campus for a short time and need a place to live especially if they are not ready to buy.

With every investment you need to do your due diligence. Run the numbers to make sure it does make since to invest in a specific property or area. Just because it looks like a good deal it does not mean it is.

For help with real estate investing in a college town contact the Settles Team.