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Invest a dorm

We Are THE #1 RESOURCE For Your College Town REALTOR Referrals In ALL 50 States

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College…. What an exciting time in the life of a young person and their family. The applications, the acceptance letters, the campus tours, the financial documents, scheduling the classes, buying the books, the hellos, the goodbyes, the meal plans, the search for suitable living arrangements, the lists of “to do’s” are seemingly endless.

Most students (actually, their parents) prefer that their student lives on campus or in the dorms at first, until they are familiar with the campus and the neighborhoods around it. During the first year, research can be done to locate the most desirable area in the desired price point, a favorite complex or neighborhood that is most convenient to campus for the student. It is possible when purchasing a property in a college town to not only defray some of the costs of living on campus in a dormitory, but to potentially help build credit for the student and potentially profit from the tax benefits of an investment property. (You should consult with your Tax Professional about any potential tax benefits.) Another thing to keep in mind is that potentially additional roommates would help pay that mortgage. It was in further exploring this avenue for those of our children and/or college bound students who seek the flexibility of living off campus the concept of InvestADorm (aka: Inve$tADorm) was born.

We are happy to be your resource to recommend licensed, professional Realtors who work in and are familiar with the college town in which you are contemplating this endeavor. You can ask them to go over the benefits and challenges of college town real estate ownership. Some of the discussion points of your conversation may be:
*Rent vs. Buy in College town
*House vs. Condo vs. Townhouse (Homeowner’s Association & Condo Fees)
*Discuss how this situation may assist the student to establish credit by having his/her name on the deed and mortgage (in addition to co-borrowers – if any).
*Have additional roommates pay some of the mortgage with their rent contribution. Oftentimes the roommates’ fair share of the rent will cover most if not all of the monthly mortgage payment. In many cases the owner/student will more than likely benefit from their own reduced monthly payments.
*Who will be responsible for maintenance of the property on a regular basis? Will you require a property manager or is the student able to handle this responsibility?

You will want to seek advice and consider whether you would retain the property as a rental investment property and continue to rent it after “your” student graduates or moves on, or if you will more than likely sell it and satisfy the mortgage. Depending on your ultimate goals, the purchase, mortgage, etc. will be structured specifically. In this light, it’s best to “begin with the end in mind” to achieve the optimal benefits of this endeavor.

Beth Daly

RE/MAX Experience

Direct Cellular Phone 954.663.3180

E Mail: Beth(at)LiveByTheSea(dotted)com

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