New to investing College town questions.

[Spencer McNeil]

Ok I'm brand new to the scene of real estate and I live in a college town. A lot of the homes close to the university are old and outdated but the area is low crime and very accessible. Does anyone know if it would be a good investment and if so why is no one else jumping at these opportunities? Thank you, Spencer McNeil

[Jeff Semrow]

Check the local laws on renting to college students. The laws for student housing can be very restrictive and you can lose lots of money really fast. Plus student housing is typically for 9 or 10 month leases. Most land lords want 12 month leases.

Wear and tear is also high in student housing. You can plan on making lots of wall repairs if you have student living in your housing.

There may be a cost to upgrade the properties for student housing or the college may have restrictions on students living off campus.

Start with these and see if any of them fit.