Parents of students / Duplex community idea

[Chris Quinn]

I am a realtor in a college town. There are probably 260,000 residents not counting students (and constantly growing). We have a community college with roughly 20,000 students (Blinn College-Bryan campus) and a major university (Texas A&M) with about 55,000+ and growing every year.

I am trying to develop a marketing plan to target parents of college students explaining the benefits of home ownership, equity vs. wasting rent, valuation increases (local association numbers said Oct '16 prices were up 15% from Oct '15) in a growing town. We have many 4 bedrooms, even some 5 & 6, where the student can use one room, the parents rent the rest and more than cover their mortgage. I estimate we have 20,000 new students moving to town every year.

Idea #2: For the investor side of me, as something to create passive income and let me money work for me.

I am currently in the EARLY stages of creating a business proposal to plan out a duplex "subdivision". Multifamily units (mainly duplexes, because of the private backyard. We have A LOT of students who end up getting dogs) are popular around here. However, duplexes are hard to come by as far as owning. Many owners realize their potential and are reluctant to sell. This is why I have begun plans to build and manage my own duplexes. I have looked at everything from 1/2 acre lots (which could hold 1-2 duplexes) all the way up to a 9 acre lot that could hold 18-22 duplexes (when it's all said and done). The 9 acre lot has peaked my interest. I will be developing a business plan and hope to attract some financial backing, as preliminary projections are at about $2.5M (at 18 duplexes) for total build out including the land, road, sewage, and 18 units-3 bed / 2 bath, 1100 sq ft. (on each side). 

I have never done this before and would love some feedback.

[Patrick Liska]

I agree with @Ross Leavitt and is the reason i asked, 4 - 5 miles is quite a distance for students, but you may find some that will rent. you want to make sure on the rents you can receive that far out too. they may be getting $800 close to the school, but you may only be able to get 300-400 where you want to build. check and make sure on your State law on how many non-related people can live together, most States it's 4 but i have come across some discussions on here where Investors have said they are only allowed 3. that will make a big difference in your numbers.