Rental Market in Waco, TX

[Michael Simmonds]

Hi all,

My wife and I are considering purchasing a rental property in Waco, TX near Baylor University. As we come closer and closer to a closing date, we are beginning to have some concerns and fears since this is our first real estate investment. We did some research on the vacancy rate in Waco and found that it was relatively high which is worrisome. However, we figure since we are purchasing a duplex near the college, it shouldn't be difficult for the management company to maintain a steady flow of tenants. We would greatly appreciate any insight and feedback from anyone with more experience than us in real estate investing. Many articles that we have come across state that Orlando, FL is the best place to invest today. However, when we do our calculations, the property in Waco seems be more profitable in terms of cash flow. Are we missing something about Orlando? Are there certain areas to look out for that will provide us a higher ROI?

Thank you in advance!

Michael Simmonds

[Rachel Fazio]

I don't personally mind college rentals, just having the parents co-sign goes a long way for preventing damage or at least having it reimbursed later. It may very well be more work for your property manager to handle though. I don't know anything about the market in Waco, but I'm happy to endorse Little Rock as a great place to invest, as one of the other members mentioned.