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Updated almost 4 years ago, 02/19/2021
Tailoring my Portfolio Towards the College Student Demographic
Hello BP community!
As a newbie investor who is currently in the educational phase and has zero deals under his belt, I am exploring the many directions I can take in real estate towards achieving my goal of becoming financially independent before the age of 45 (I am 30 years-old now). I currently have a full-time W-2 and would like to build my portfolio so that it provides a reliable source of passive income. One of the variables, I have noticed, that likely has a large impact on the reliability of income from rentals is the specific demographic(s) that the properties in one's portfolio is/are tailored to. From what I have gathered, it seems as though each demographic is affected to differing levels by variances in the local, state, national, and world economy.
The local markets in my town are comprised of a number of different demographics which include but are not limited to: government employees and contractors that work for the D.O.D. and NASA, military members, blue-collar workers, and college students. Lately I have been contemplating on the feasibility of using the local college students as one of my targeted demographics. And in doing so, I have discovered a few things that I think should be considered, but I am not too sure on how to go about approaching them. They are as follows:
1. Number of Enrolled Students
The number of students that are enrolled in the college/university could directly affect one's ability to successfully target college student tenants.
2. Fraction of Students Renting
From the total amount of students enrolled, a certain portion of them will be living on campus or in student housing, commuting from parents' home, doing online classes from outside of the area, and renting near campus. Is this data typically available? If so, where can it found?
3. Property-To-Campus Proximity
How close is the property to the campus? Is there a typical radius from campus that an investor should stay within if the intended demographic is college students?
4. Time of Purchase
After purchasing a property, one may need time for renovations and advertising, among other things. Additionally, I would imagine that one should time the purchase of the property such that expenses associated with the initial holding/vacancy after purchase and prior to the start of the next semester are minimized. What do those time windows typically look like and how do I account for that holding time?
These are just some of the factors that I have thought may play a role in successfully targeting college students as potential future tenants. I am sure I am leaving a lot out, so if any other BP members have any thoughts or suggestions on what I have presented or on any other factors that I am leaving out, please feel free to chime in!
Thanks in advance!
- Shawn
As a newbie investor who is currently in the educational phase and has zero deals under his belt, I am exploring the many directions I can take in real estate towards achieving my goal of becoming financially independent before the age of 45 (I am 30 years-old now). I currently have a full-time W-2 and would like to build my portfolio so that it provides a reliable source of passive income. One of the variables, I have noticed, that likely has a large impact on the reliability of income from rentals is the specific demographic(s) that the properties in one's portfolio is/are tailored to. From what I have gathered, it seems as though each demographic is affected to differing levels by variances in the local, state, national, and world economy.
The local markets in my town are comprised of a number of different demographics which include but are not limited to: government employees and contractors that work for the D.O.D. and NASA, military members, blue-collar workers, and college students. Lately I have been contemplating on the feasibility of using the local college students as one of my targeted demographics. And in doing so, I have discovered a few things that I think should be considered, but I am not too sure on how to go about approaching them. They are as follows:
1. Number of Enrolled Students
The number of students that are enrolled in the college/university could directly affect one's ability to successfully target college student tenants.
2. Fraction of Students Renting
From the total amount of students enrolled, a certain portion of them will be living on campus or in student housing, commuting from parents' home, doing online classes from outside of the area, and renting near campus. Is this data typically available? If so, where can it found?
3. Property-To-Campus Proximity
How close is the property to the campus? Is there a typical radius from campus that an investor should stay within if the intended demographic is college students?
4. Time of Purchase
After purchasing a property, one may need time for renovations and advertising, among other things. Additionally, I would imagine that one should time the purchase of the property such that expenses associated with the initial holding/vacancy after purchase and prior to the start of the next semester are minimized. What do those time windows typically look like and how do I account for that holding time?
These are just some of the factors that I have thought may play a role in successfully targeting college students as potential future tenants. I am sure I am leaving a lot out, so if any other BP members have any thoughts or suggestions on what I have presented or on any other factors that I am leaving out, please feel free to chime in!
Thanks in advance!
- Shawn