University apartment investment

[Michael Hill]

Considering a condo or apartment investment property in the university area of Raleigh, NC. any advice on pros /cons compared to SFH?

[Tiffany Alexy]

@Michael Hill,

Any particular reason you are looking at that specific investment?

Pros: very low vacancy, decent cash flow, low entry price, not responsible for exterior maintenance

Cons: student tenants, lots of turnover, higher HOA fees, not as much appreciation

I own 3 student rentals and manage a few more.  They are great cash flow machines and have experienced appreciation, but I bought the last one in 2015.  Going forward, I am not sure how much appreciation will happen given that right now they are at all time high prices.

Generally I like having mine and have held onto them. They are pretty low maintenance since the HOA maintains the exterior. All I have to worry about are the appliances and the HVAC/hot water heater. They are very easy to rent since the rooms are about $400-$450 each and attract a variety of tenants - mostly students, but I also have tenants who are young professionals, recent grads paying down student loans, etc.

Let me know if you have any specific questions I can answer.