Real Estate Broker · NYC Metro Area · Member since 2015 · 58 posts · 28 votes
I'm looking at several properties in Poughkeepsie NY to purchase and use as student rentals. I've been analyzing the town for a while and would be interested in hearing from other investors in the area who are renting to students.
The numbers look very promising; low mortgage, high rents (especially when renting to 5 or 6 individuals)- even factoring in all the additional headaches of dealing with students, it still looks very promising!
I came across an article outlining how MArist College is planning on expanding there on-campus housing in 2017 with a huge investment. This stopped me in my tracks as it estimates an approx 40% reduction in the undergraduates seeking off campus accommodation. But there are several other colleges in the area which I could potentially target with the same properties
Anyway, would be interested in hearing people thoughts (good, bad or indifferent) on the area and strategy!
Brian,
I am doing the same. I am originally from LaGrangeville, right outside P-town. I have some good contacts in the area and been making plans to buy, fix and rent.
Would love to connect if you are interested.
Like your thinking, and I always mention Poughkeepsie as the fictional place in all my real estate hypothetical example (why do people do that?)...
But back to your question... think broadly, too, about university staff, faculty, maintenance workers, IT people, security, nontraditional working students... Many of these may still be there in force and want to live close to work and even stay year round (and less scenes like Animal House or more recent Neighbors)...
So you could even target people who work at the colleges (even grad students, if any) more than say traditional student populations where there may be less demand for off campus housing (but think of the types that still want off campus housing)... and you did well to look at a larger economic trends and events (very much in the Dr. Schumacher buy and Hold vein, a classic of landlord literature, I noted in a blog post by the same name recently).. Best of luck in the real (not hypothetical) Poughkeepsie, Brian!
I was up there at the beginning of the month to check out colleges with my high school student and the Marist college housing addition definitely made me pause about buying a student rental - but there are definitely opportunities! My daughter decided against going to Marist, but if she went there we would definitely consider buying a place.
I'm curious what rents look like to the non-student population - exit strategies and long term outlook in mind. As well as the financial health of the rest of the city in looking at long term equity. Student housing near our local college are quite inflated because the college students tend to pay more, but as on campus housing is added - it seems like colleges are able to hold onto upper classman longer as the sheer convenience of being on campus plus the new added amenities make it really attractive for students not to look at off campus housing as much as they used to. (Plus I think kids these days are just too spoiled to make the effort to move off campus!)
Great points @Michael Boyer and thanks for your feedback! Funny you bring up thinking outside the box because today I read that the same college will be expanding there graduate programs and so the increase in grad students will most likely off-set the reduction in the undergrad population..
@Ceril S.I'm not too familiar with the rent demand outside of the student population, I would imagine it's not as attractive but it's definitely something I will be considering.. What's your local college?
Not the same as it used to be. The City strictly enforces the 3 students per house occupancy limit. There is another phase of dorms going up at Marist. Also, Fox Run is a killer.
I went to SUNY New Paltz and lived there during my shcool years. I remember paying a lot for what I had. In Binghamton, as well as Cortland, both have a big college population and both had big companies move in to develop student housing. I can speak for Binghamton and had people tell me the same thing about Cortland, the big complexes cost too much for many of the students and the impact on the local rental market was minimal at best.
Brian,
I am doing the same. I am originally from LaGrangeville, right outside P-town. I have some good contacts in the area and been making plans to buy, fix and rent.
Would love to connect if you are interested.
Hi Brian, I invest and have lived in the Poughkeepsie area, The City of Pok is strict on their student rental rules. I have a realtor friend that works with an investor that cuts up houses and rents rooms to Marist students, he looks in the Town Of Pok area.
I live in the immediate area and have talked to a few long time investors with student rentals. They both had empty houses before the semester started and been finding it more difficult than ever, and this is before the new Fox Run complex and dorms are completed.
I went to SUNY New Paltz and lived there during my shcool years. I remember paying a lot for what I had. In Binghamton, as well as Cortland, both have a big college population and both had big companies move in to develop student housing. I can speak for Binghamton and had people tell me the same thing about Cortland, the big complexes cost too much for many of the students and the impact on the local rental market was minimal at best.
Good to know. Thank you, Brian, for providing the information. Because I was just thinking about doing student rental in Binghamton and is very reserved due to these big development complex. But now I feel more optimistic!
Students still want to live off campus regardless of the new Marist building. I know this may sound cliche but .. location, location, location. Don't get me wrong, there are other factors that come into play when you purchase a home for student occupancy, but the location is key. There is still a demand for student housing in Poughkeepsie.
I was at a party and spoke to the graduate admission officer Marist and she said she can't keep up with housing demand. They filled a whole hotel on rt 9.
Hi... I know zero about NY student rentals, but I know a bit or two about student rentals (24 years worth). In my opinion, you can compete with new dorms and apt complexes, but you need to really understand the market and the student's needs. If your property is a lot closer to campus vs the new building... and the rent is a lot cheaper and it also has some feature/upgrade/etc that the new building doesn't have, then you should be able to rent your property to decent quality student renters. But if you have none of these advantages, I wouldn't invest, because you won't be able to compete, since everyone loves new.....Just my 2 cents....
I have spent a lot of time looking at student housing near Marist/DCC/CIA/Vassar, and while going to college I spent a lot of time in the dorms east of Rt 9. Its going to be very hard for investors to compete and provide the atmosphere that is currently being built on the Marist grounds. The housing areas are top notch and at this point nearly large enough to be a small community. If you're going to do a student rental there just make sure you know what you're getting into.
If its within few mins walking distance from campus and all inclusive then answer is yes; depending on finishes too. Now students have other options these days; they do get picky.
Reviving this thread. Anyone have student rentals close to Vassar? How are they doing?
Also, for student rentals, is it better to do all inclusive (heat, hw, electric, wi-fi) and charge a higher price or do the students/parents take care of the utilities?
Frank I do no utilities included. Others do. I think its,about the property and total appeal and price point. Off campus we charge more than a normal rental, but it's still cheaper than on campus. Especially year round.