Rental properties in college towns (Clemson, SC)

[Adrian Love]

Looking to buy a 4/2 condo in Clemson, SC near campus. Has current tenants through August 2019, with solid cash flow and 10% cash on cash return. This would be my first investment property, what are some things to be aware of with renting in college towns and to students? Are college towns better protected against market downturns as the economy is correlated closely to the school?

[Carson Wilcox]

Price is usually better protected because of demand....

 BUT... Turnover, turnover, turnover.  guaranteed, every 12 months.  

If you have a PM with a leasing fee.. boom.  $ gone every year.  guaranteed. 

Repair calls up the A for stupid stuff because they are kids and kids in this generation are useless.

Add on to that, repairs at turnover for dumb stuff... leaky toilet, they dont call anyone...  They throw a towel on it and leave it for 5 months, rot your whole sub floor... AC is howling... its not hot...oh well, just let it run..  explodes because a fan was stuck...

You almost want to do your repairs and capex $ like its a D property with a section 8 tenant.

If it were me... I target single family homes in college towns in areas where students DONT live.  You get the upward price pressure, which is nice... but not the issues.