Yes, this can be a viable choice for many parents with students at Texas A&M University. We have a wide variety of properties available (more every day it seems) from condo's and townhouses to single family homes, etc. Although the rental market does fluctuate somewhat depending on demand, time of year, etc., many people find it a wise investment to spend their student housing dollars on a purchase rather than rent.

I don't know if you already have other properties that you own, but it certainly can have an impact on the required amount down when considering a loan. But, you may already be familiar with that?

Brent

Bruce is absolutely correct, however, in our market it is standard that the rental is for 12 months. Most of the parents don't want to deal with hauling all their belongings here in the fall and home for the summer, only to turn around and do it again. If the students want a 9 month lease, such as in their senior year, they will pay more for it.

Absolutely. Places like College Station, Austin, Lubbock, and Denton are excellent choices for this type of investment. If you are thinking about renting to students you should devise a plan though to capture the market for 12months. Most students seem to want 9month rental. Summer is not always an easy time to rent. The other idea is rent to professors or exchange students.

Stephanie,

Good question! Around 1/4 of the homes I sell each year are for parent investors. Our dorm situation isn't erribly pleasant and there are MUCH better options out there. We have older homes that are within miles of campus that sell for the 120-150K range and will offer 3 or 4 bedrooms. We have condos that are within walking distance for 125-160K that are also 3 or 4 bedrooms. Older duplexes can be a great market as well.

If your student will be in the area for at least three years I consider this an excellent investment.
Here is a sample scenario. One of my investors invested cash in two condos. He gained 8 bedrooms out of this. He bought these condos for around 95K each three years ago. The condos are now worth around 110K. In three years he has gained 30K on his investment. Not spectacular, but not bad. He has rented 7 of these bedrooms out at a cost of $350 per month each. His son lives for free and collects the rent of $2450 per month for being the property manager and uses it for expenses and tuition. My investor is able to tax deduct deprectiation and part of his income as wages for his son.

Even if you don't have cash it can be a win win scenario with housing costs covered and appreciation gained with some tax benefits.

I can tailor a plan to your needs. Call me for more information!

Chris Tesch
RE/MAX Bryan-College Station