Should you Invest in College Towns? Real Estate Investing for Beginners

Check out mashvisor.com get a 7-day free trial by using this link: https://bit.ly/3LZy37i This video is the ultimate guide for real estate investors- Should you invest in a college town?. Follow each step of this step-by-step tutorial, here in the description. Enjoy! Make sure to like, comment, and subscribe (here). https://bit.ly/3s0WlpT Chapters: 00:00 Intro 00:35 How do investors define a college town? 00:49 Reasons to Invest in a college town 02:50 Reasons not to invest in a college town 03:50 Type of properties that make great student housing investments. 04:56 Three things you should consider before investing in this way 06:08 Some tips for managing a rental property in a college town? 07:15 How to find real estate to purchase 10:15 5 Top Locations That Are Ideal for Student Housing ► College Town: What is it? College towns are towns or communities that are purely dominated by their university student population. ► Reasons to Invest in a college town? Continuous Demand for Housing Reliable Economies Flexibility in Rates ► What kind of properties make the best investments for renting to college students? The type of property that can be a good investment for renting to college students is a house or building that can be divided into multiple apartments. This means multifamilies, such as duplexes, triplexes, and fourplexes, can be good investments for college towns. Also, traditional apartment buildings can be a good investment, and even mixed use, can work for this purpose. ► Three things you should consider before investing in this way. Safety It is important to consider the safety of the neighborhood when investing in a property for renting to college students. This is because students are often targets for crime, as they are perceived to have money and valuable belongings believe it or not. Noise Another consideration is noise. College students are often up late studying or partying, and this can be disruptive for neighbors. Therefore, it is important to invest in a property that is in a neighborhood where noise will not be an issue. Zoning Third, you want to make sure the property is properly zoned for rental purposes. In some college towns, there are restrictions on how many people can live in a single-family home. ► What are some of the best tips for managing a rental property in a college town? 1) Have a good screening process for tenants. 2) Have a strict late payment policy. 3) Be flexible with lease terms. 4) Be understanding of noise complaints. 5) Have a good relationship with the local police department. ► Important Metrics Used to Find Properties -Median Property Price: This indicates the average fair market value for a single property in an area. -Average Price per Square Foot: This shows how much a property is worth in square footage in a given location. -Days on Market: This metric shows how long (or short) a property stays on the multiple listing services. Investors sometimes refer to this to determine if a location is a seller’s or a buyer’s market. -Monthly Traditional Rental Income: This number indicates the average monthly rental income traditional rental properties make. -Traditional Cash on Cash Return: This metric shows a property’s potential profitability. -Traditional Cap Rate: Divides the NOI by the property’s actual cost or market value. It assumes that the property is (or will be) purchased with all cash. -Price to Rent Ratio: This number shows whether or not it’s better to buy a house or just rent one. -Walk Score: The walk score just shows how walkable an area is. ► Top 5 locations for investing in student accommodation 1. Pittsburgh, PA 2. Ithaca, NY 3. Gainesville, FL 4. Iowa City, IA 5. Aims, Iowa I hope you enjoyed this ultimate guide. Check out mashvisor.com and get a 7-day free trial by using this link: https://bit.ly/3s0WlpT 👉 Follow us on social media: LinkedIn https://bit.ly/3gceI4x Facebook https://bit.ly/34knlav Twitter https://bit.ly/3rdSt4n Instagram https://bit.ly/3ANJIkT TikTok https://bit.ly/3se2aPw 🎬 Suggested Videos: What does a real estate agent do for investors? ► https://bit.ly/3c2yyRr Starting An Airbnb Business ► https://bit.ly/3onhRm3 How to Find, Analyze, and Buy Properties ► https://bit.ly/3vaxgtJ 📚 Suggested Reading: 10 best college towns to invest in student housing in 2022 ► https://bit.ly/3K54cKu A guide to investing in college town rentals? ► https://bit.ly/3dHM25B 8 Reasons to invest in college town properties ► https://bit.ly/3Ci9kZO Disclaimer: None of the contents of this channel "Mashvisor" are meant as direct advice. The purpose of this channel is to inform and educate. It is the viewer's responsibility to decide if the education is something they will put into action. Michael Jones and the Mashvisor Youtube Channel do not take responsibility for the results experienced by the listener/viewer.