Home Buying in Fort Collins>Question Details

kowens, Other/Just Looking in Fort Collins, CO

What neighborhoods are best to purchase for student (FRCC & CSU) for investment?

Asked by kowens, Fort Collins, CO Fri Jan 24, 2014

student occupy in 1 room rents others to pay mortgage

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Answers

7
That is a tough question, as there are so many variables to consider.

First, for CSU students, the closer to the campus the better, (obviously), and the lower the rent the more likely you'll get a strong occupancy %, (again - obvious).

Maybe the key question isn't "what neighborhoods are best" but what are your expectations as a investor? There are a lot of questions to answer before getting involved as an owner/landlord. How much involvement do you want? Do you prefer single detached homes or multi-unit investments? What do you expect your ultimate IRR (Rate of Return) to be?

Than, for a quick comparison of properties... Price per Square Foot or Cash-on-cash return...Gross Rent Multiplier or what I think is the most accurate for a fast look..CAP Rate. Finally a solid investment software spread sheet that takes into account Holding Period/Rental Increase/Property Appreciation/Land & Building Value/Net Operating Income/etc.

You'll want a Realtor that is experienced in investment property and I also recommend that you take a Real Estate Investment course so that you can know the right questions to ask. After all, we are ultimately responsible for our decisions, it's best to be as prepared as possible for your success!

Best of Luck,

Andy Burnett
ERA Herman group
303-995-0997 or 970-488-9391
andy@aburnettrealty.com
0 votes Thank Flag Link Wed Jan 29, 2014
I've got a great one that has been totally redone with nice finishes on Horsetooth and Shields. I have sold a couple in this complex as "kiddie condos" and they love them! Easy access to CSU and FRCC

http://www.fullhouserealtygroup.com/search/details/5s/15/

Hope this helps.
Allison Klein
0 votes Thank Flag Link Sat Jan 25, 2014
The great thing about Fort Collins is that just about any neighborhood provides ease of access to the University or Front Range campuses. The key component in your search is finding a property that is priced right not just for the market - but for your investment needs. Depending on how you plan to pay for this property will be a critical factor (getting a loan or paying cash). As Robert mentioned, the Occupancy Limits that the City of Fort Collins implemented reduces the total number of unrelated persons that can reside in any given residential dwelling. Here's a link to the City's resource page: http://www.fcgov.com/neighborhoodservices/occupancy.php. Historically, rentals in Fort Collins fare well because of the demand for student housing, however, given the most recent economic downturn many more non-students are renting because qualifying for a mortgage has become substantially more stringent. My wife and I both sell real estate and have also purchased rental properties for ourselves and clients. As Carrie mentioned, a college rental (aka "Kiddie Condo") can be a great way to offset some of the high costs of a college education. We'd love to help you with this search!
0 votes Thank Flag Link Sat Jan 25, 2014
Investing in a college rental is a great way to off set college expenses and build equity. The most generic way to look for areas that would work for your investing needs would be by zip code including 80521 and 80526. Parts of 80524 and 80525 could also potentially work. I would suggest working with an agent, such as myself, who has extensive experience working with college rental properties. It's important to be thinking resale even if you are planning on holding the property for quite some time. Feel free to contact me directly to discuss more of the specifics of your needs.
Kindly, Carrie Holmes
0 votes Thank Flag Link Fri Jan 24, 2014
North of Harmony. West of Lemay. Consider Ft. Collins Occupancy laws when deciding on the number of beds and baths. to protect your investment. Make sure your Realtor is pulling comps for the neighborhoods. Many rentals are now being fixed up and sold to first time home buyers in multiple offer situations. Look for a certain level of quality, 'a bad roof is a bad roof" and will cost you no matter who lives in it... students or not. robert@nocodreamhome.com
0 votes Thank Flag Link Fri Jan 24, 2014
Hi, good question. There's plenty of options right around 200,000 between CSU and FRCC. Feel free to contact me to discuss specific properties that might interest you!
Web Reference: http://www.970realtor.com
0 votes Thank Flag Link Fri Jan 24, 2014
Typically the highest density "college rental" areas around campus are Zip Codes:

80521:
South of Mountain Ave., North of Prospect, East of Shields, West of 287 (or college)

80524:
South of Mountain Ave., West of Lemay, North of Prospect, East of 287 (or college)

In general areas East of 287 are going to be more expensive as they are nicer homes and more "historic"

best bet is closest to campus and at least 3 bed 2 baths- don't worry about quality as its a college rental and will continue to rent.

Hope that helps!
0 votes Thank Flag Link Fri Jan 24, 2014
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