<p>I mean to live in while away at college? If so, in what city and did you lose money, break even or make money?<br>
We’re thinking about it. Any advice?</p>
<p>My friend bought a house for his son who is in a trade school. Not good! Roommates weren’t reliable, and often my friend had to chip in a lot each month to pay the mortgage. (The original agreement was that the son would pay the mortgage from his job and have roommates to help cover expenses.) Son eventually got fed up and wanted to move to an apartment. After about 3 years, they are selling the house at a big loss, and are busting their booties over there all the time painting and fixing it up so it will sell.</p>
<p>Friends bought a condo and S had as roommates kids the friends knew the parents and could get the rent from them. They are doing Ok on it. The place is a mess, though. </p>
<p>My uncle bought a place for his a long time ago. Made the kid a deal for any appreciation. Inspired the kid to take care of it and manage it. They negotiated some kind of split when they sold it and it made a down payment on a business for the kid. That worked out.</p>
<p>I know of 3 who have done it with mixed results. One in Davis, Ca. they did hire a management company and it worked out well. They kept it after the child graduated and still own it and make money. Prices at the time in Davis were quite reasonable. They could sell today and make a nice profit.
Another bought in a town that is split 50/50 of college age and retired people. Real estate prices were fairly high. Child had roommates but unfortunately the school was not a fit for the child and he ended up leaving the school and returning home. He could have rented cheaper. The property probably appreciated but I doubt it was worth the hassle.
I also know several people who already owned investment property where their kids go to school. These were all professionals in the field so they knew what they were doing.
My spouse might consider it depending upon the cost and location. He is in the property management field so he would know going in what to expect. Being a property manager or owner is not fun. It is hard work and not for everyone. I would hesitate to put the child in charge of the house and the roommates and rent. College students are extremely hard on property expect to spend money each time the tenants turnover.</p>
<p>I know a family who bought a condo in Chapel Hill for their D. She has one roommate. It seems to be working out so far. This D has one more year of school. Their younger D is a rising h.s. senior and may end up at UNC-CH too. So she can use the condo too.</p>
<p>Girls are much easier on places than boys.</p>
<p>My S1 has been in apt. with 3 other boys for almost a year. H was there Sunday. Said it was pretty much a wreck. I’m sure the boys will be paying for some damages when they move out. I would be leery of buying a place for a guy.</p>
<p>I have a friend who did it–it was aggravating to deal with sloppy boys but she made $50K when she sold it.</p>
<p>I don’t know anyone personally who has done this, but the papers here have been full of discussions of it, and I know from clients that it is a big factor in development and condo sales in the area around Penn. Given the run-up in prices 2002-2005, it would have been almoist impossible not to make money on this net in that area for any kids who graduated in the past three years – boys or no boys, hassle or no hassle. That doesn’t mean that it’s a good idea, though. It’s a great idea if the market goes your way, and a terrible idea if it doesn’t and you have bad roommate / bad maintenance / bad fit / bad luck hassles.</p>
<p>Many were doing it in California, especially near UCs, before the market here slowed. Until about 2 years ago it seemed impossible not to make 10%/yr plus anywhere in CA. Several of our friends invested in Merced while they were building the new UC there. Would not do it today unless the college is in an unusual market that is stable real estate-wise now and the kid was very responsible.</p>