Looking to purchase home for college student and rent out other rooms

[Amy Schein]

I have a son at AU and wants to move off campus.  We have been thinking of starting to invest in real estate and thought this might be a good opportunity as we have to pay rent anyway for the next 3+ years, as he may want to stay there.  I know the market is difficult right now but is this a worthwhile venture? I was thinking a 3-4 bedroom apartment and rent out the other rooms to other students.  I didn't want the hassle of a house since we don't live that close, but it's not off the table.  Also, if our son lives there can this be considered owner-occupied and would this help with some of the particular challenges of Washington, DC?  Are you allowed to rent a room to 2 people to be roommates if it is large enough?  Do they each get their own lease?  

Thank you in advance for any help and ideas!  Open to other ideas if this is crazy,

Amy

[Jack Seiden]

Quote from @Amy Schein:

I have a son at AU and wants to move off campus.  We have been thinking of starting to invest in real estate and thought this might be a good opportunity as we have to pay rent anyway for the next 3+ years, as he may want to stay there.  I know the market is difficult right now but is this a worthwhile venture? I was thinking a 3-4 bedroom apartment and rent out the other rooms to other students.  I didn't want the hassle of a house since we don't live that close, but it's not off the table.  Also, if our son lives there can this be considered owner-occupied and would this help with some of the particular challenges of Washington, DC?  Are you allowed to rent a room to 2 people to be roommates if it is large enough?  Do they each get their own lease?  

Thank you in advance for any help and ideas!  Open to other ideas if this is crazy,

Amy

 Yes you can definitely rent a condo out to other students, you could definitely co-sign for your son, he would be considered an “owner occupant” for financing purposes which would allow a lower down payment and a slightly better rate. The biggest issue I see is if you are investing for appreciation you’d probably want a single family or rowhome (which are pretty expensive around au) and as @Joaquin Camarasa mentioned I’m not sure with rates plus hoa you’d save money in the short term vs renting, long term that area is a great investment though, especially on the single family/rowhomes.