How do YOU Evaluate Student Rentals

[Will Pieper]

Hey All, 

I live in Columbia, MO and have been in long-term rentals for a while but have yet to venture into Student Rentals. I am considering but even as a Realtor and local investor it is hard for me to see the value. The sale prices are usually inflated when compared to a non-student rental and I imagine the units see more wear and tear than other types of real estate. I am interested to know what drives other peoples interest in this property class and what others are seeing as far as return on investment in terms of GRM or Cap Rate in similar areas like other SEC colleges. Also for those of you that buy these properties, do you evaluate these types of properties differently than other property types?

Thanks,

Will