Investing in a college town and buying during school sessions

[Mason Adelman]

Hello everyone,

I hope you are all doing well. The reason for this post is I plan to invest in a single-family property as a house hack during my sophomore year in college in Indiana for the next upcoming school year. My big concern is that if I do buy the property, say between October - March, what will I do about the vacancies? I do plan on doing minor renovations so that may take only a month or two but other than that, should I rent the space at a cheaper price for short-term rentals? I would have the reserves (hopefully) to accompany a 6-month vacancy until next school year.  All responses would be appreciated!

[James Carlson]

@Mason Adelman

First off, smart idea to buy a home and rent it by the room. House hacking at your age, you'll be ten steps ahead financially by the time you graduate. 

I actually think you might be okay filling your place. We own a 4br/2ba home in Colorado Springs, a mile east of Colorado College, a private liberal arts college. In late summer, we moved out and listed it for rent to traveling nurses/remote workers, etc. But at the same time, Colorado College shut down in-person classes and we had a flood of interest. Sure, lots of students will do classes from back home, but many will want to stay in the city, even if they're not physically attending classes. 

So I'd try to buy in late spring, early summer, do whatever work you need to, furnish it and then list it for rent starting in the fall. I bet you'll be okay. If you're up and running early, then post a room or two on Facebook Marketplace for shorter 1-month, 2-month stays, whatever. There are all sorts of people looking for those medium-term stays. Again, nurses, remote workers, people in transition between housing.

Good luck!