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User Stats

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Student Housing in Waco TX

Posted

Hello everyone, I am new to Real estate investing and I am particularly interested in student housing in Waco TX-due to the affordability (for me) of the prices of the properties in Waco. I have read about "Baylor Bubble." and am wondering what is the particular area it covers? Also, I will need some direction to this local market. Anyone with directions will be highly appreciated.

I am thinking of buying a 4-bedroom property that has some potential for student amenities. What should be concerned about?
What are some strategies I should consider?
Thanks in advance.

User Stats

59
Posts
31
Votes
Patrick Pendley
  • Investor
  • Waco, TX
31
Votes |
59
Posts
Patrick Pendley
  • Investor
  • Waco, TX
Replied

I would say the Baylor bubble is going to be the downtown area ish that is on the east side of I-35 between the interstate and Valley Mills and from the river on the north down to say 17th street. The bubble extends down university parks really all the way to loop 340. There is also a section on the other side of LaSalle from the university. In general the area is over built and has a lot of "mice after the same cheese" one of the difficulties is Baylor requiring freshman to live on campus and them expanding their living learning centers. Basically think, Baylor wants everyone to live in their housing. There is still a lot of opportunity. There are several things you need to keep in mind. The first is that Baylor is primarily female in terms of the student body. It's also an expensive private school. That translates into The primary concern about picking housing is safety and amenities. In that order. So properties with good lighting not near junkie looking properties and ones that are fenced bring higher rents and are more desirable. The second consideration is that students or rather their parents are willing to pay for the newer nicer properties with more amenities. So there's some of the keeping up with the Joneses. Every property has a place in there you just have to make sure you mark it correctly in our price right. Feel free to reach out if you have any more specific questions or if you feel like I can help at all.

User Stats

59
Posts
31
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Patrick Pendley
  • Investor
  • Waco, TX
31
Votes |
59
Posts
Patrick Pendley
  • Investor
  • Waco, TX
Replied

Also I think it's worse stating that the smaller units the more desirable. As an example a one bedroom or studio apartment is going to rent faster than a 3 or 4 bedroom apartment. Also having a private bathroom for each bedroom is a huge plus.

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User Stats

59
Posts
31
Votes
Patrick Pendley
  • Investor
  • Waco, TX
31
Votes |
59
Posts
Patrick Pendley
  • Investor
  • Waco, TX
Replied

Also I believe it is worth stating that smaller units are more desirable. Meaning a one-bedroom or a studio rents very easily and has sought-after, a four bedroom is not as desirable. But if you do have four bedrooms it's best to have private bathrooms for each bedroom.

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1,639
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920
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Lucia Rushton
  • Realtor
  • Dallas - Fort Worth Metroplex, Tx
920
Votes |
1,639
Posts
Lucia Rushton
  • Realtor
  • Dallas - Fort Worth Metroplex, Tx
Replied
Quote from @Patrick Pendley:

I would say the Baylor bubble is going to be the downtown area ish that is on the east side of I-35 between the interstate and Valley Mills and from the river on the north down to say 17th street. The bubble extends down university parks really all the way to loop 340. There is also a section on the other side of LaSalle from the university. In general the area is over built and has a lot of "mice after the same cheese" one of the difficulties is Baylor requiring freshman to live on campus and them expanding their living learning centers. Basically think, Baylor wants everyone to live in their housing. There is still a lot of opportunity. There are several things you need to keep in mind. The first is that Baylor is primarily female in terms of the student body. It's also an expensive private school. That translates into The primary concern about picking housing is safety and amenities. In that order. So properties with good lighting not near junkie looking properties and ones that are fenced bring higher rents and are more desirable. The second consideration is that students or rather their parents are willing to pay for the newer nicer properties with more amenities. So there's some of the keeping up with the Joneses. Every property has a place in there you just have to make sure you mark it correctly in our price right. Feel free to reach out if you have any more specific questions or if you feel like I can help at all.


 Agree on all said the Mum of a Baylor student :)

User Stats

69
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28
Votes
Jaime Duron
  • Realtor
  • Austin, TX
28
Votes |
69
Posts
Jaime Duron
  • Realtor
  • Austin, TX
Replied

Hi @Olusegun Samuel Oyebode! All great points from above and honestly the best why to get into investing is to do a House Hack/Co-Living. Essentially, you could potentially be living for free if not have a little passive income coming in. Live in the smaller room, rent out the others. Great way to get started as you learn more about being a Landlord and what it entails. If you have any questions, please feel free to contact me as I've be happy to chat with you. 

User Stats

48
Posts
46
Votes
Trevor Caswell
  • Real Estate Agent
  • Waco, TX
46
Votes |
48
Posts
Trevor Caswell
  • Real Estate Agent
  • Waco, TX
Replied

Baylor Bubble has a lot of competitive buyers that generally pay cash. You can figure around $650-800 a door depending on your finish-outs. I'd avoid trying to buy anything listed on the MLS due to the inflated prices that will kill your cash-flow. You may want to start looking for something off-market that is a value-add opportunity.

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4
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1
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Replied

Thanks a lot. I will be reaching out to some of you directly

User Stats

4
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1
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Replied

I currently live in Fort Worth, TX which is about 1 hour and 30 minutes to Waco TX. So house hacking will not be possible for me due to my workplace and my family of five also lives in Fort Worth. What I am looking for is finding a good deal of a house that I can possibly repair, and also learn as I go through this initial work. So am putting together a great and trusted team to help me at Waco. Thanks

User Stats

59
Posts
31
Votes
Patrick Pendley
  • Investor
  • Waco, TX
31
Votes |
59
Posts
Patrick Pendley
  • Investor
  • Waco, TX
Replied
Quote from @Olusegun Samuel Oyebode:

I currently live in Fort Worth, TX which is about 1 hour and 30 minutes to Waco TX. So house hacking will not be possible for me due to my workplace and my family of five also lives in Fort Worth. What I am looking for is finding a good deal of a house that I can possibly repair, and also learn as I go through this initial work. So am putting together a great and trusted team to help me at Waco. Thanks


 We have the team for you feel free to reach out if we can help it all. 

User Stats

133
Posts
26
Votes
Charles Holder
Pro Member
  • Lender
  • San Antonio, TX
26
Votes |
133
Posts
Charles Holder
Pro Member
  • Lender
  • San Antonio, TX
Replied

Alot of good feedback on here. Whenever you get ready for financing give me a call i'm a veteran and mortgage broker i'd love to asssist you.

  • Charles Holder
  • 5123006036