What would you do?...

[David Galvan]

Hello All, I have found a number of homes anywhere from about 1.5 miles to 4 miles away from Baylor University, in Waco. Looking at the schools trends, every freshmen class in the last 3 years has set the record for being the largest freshmen class. After the required first year of living in dorms most students are eager to live off campus. Does anyone know how far students will typically live away from campus? Also, some neighborhoods in Waco go from nice, well maintained areas to rundown looking areas very quickly, how much would this affect the ability to rent the home out if the home itself is kept up and in good shape? I just don't want my first buy and hold property to be a bad decision. Any answers, advice/guidance are appreciated!

[Andrew Syrios]

It all depends on that particular campus. I would look around at various management companies and how far out they advertise student rentals. Go ahead and ask a few managers (and maybe students as well). That should help give you an idea.

[Mark Chieda]

In answer to your questions, it partly depends on the student body in general and on the type of tenants you want.

I don't know Baylor; is it an expensive school? Are the students coming from wealthier families?
If so then they will probably have cars, so the time of commute becomes a convenience. Even 10 miles away is only going to be a short commute.

On the other hand, if students don't tend to have cars, then closer is better; or something on a public transport line.

Regarding neighborhoods - if you are ok renting to men, then a well kept property in a dodgy neighborhood is ok. If you prefer female tenants (I recommend them, they tend to take better care of your property) then you want something in a nice neighborhood - someplace not-scary.

Hope that helps!

[Eugene Kemp]

University towns can be dangerous, but I'd stay within walking/biking distance for best returns and occupancy rates. Just got out of a long term college town nightmare in Auburn, AL. Developers have so overbuilt the rental market and the Parents/kids these days want such lavish accommodations that anything not new and shiny with a gym and a pool won't move as easily! 

[Robert Melcher]

If you do commit, every roommate should be on the lease and every one should have a cosigner. I would also only do a year's lease, perhaps August to August.  If they move in late or leave early, you save on wear and tear and may have more make-ready time.

[Cave Johnson]

You could probably call the housing department at the school and get some information. I would think most students at Baylor have cars and could go further away from campus. But remember, these are college students and they might not want to live in a residential neighborhood full of couples with children playing everywhere and the home owners might not want the college kids in the neighborhood either!

[Kelly N.]

I invest in a town with lots of college students, about 50% of our tenants are students.  All our buildings are within walking distance to the local U, and many students drive to the community college (more of a commuter school) but like the atmosphere close to the bigger campus.  

You'll want to check the local city to know what you are up against- ours has a rule that no more than 3 unrelated adults can live together.  So far it hasn't been an issue for us, and doesn't seem to be very strictly enforced, but in some places it is.

[Jimmie Dickey]

X2 on what Eugene said. The City of Auburn has actually begun a moratorium on any new projects due to the incredibly flooded market. The University itself has really expanded and upgraded on-campus housing in addition to larger developers coming in and building just a ridiculous amount. There is a section a mile or so away from campus that was the best thing going 10 years ago.....now however, it is mostly section 8 housing. 

Not that this will happen everywhere, but definitely a cautionary tale.

[Phillip Y.]

@Jimmie Dickey, which area off campus are you referencing going section 8?

[Dave Meyer]

Since Baylor is a large University, you could try to advertise through some of the graduate programs. Grad students are probably more mature and less likely to through huge parties or do damage to the property. 

[Christian Beyer]

I graduated a few years ago and the key factor to living a few miles off campus is typically public transportation (or school based transportation). Are there buses that travel to these properties or at least nearby?

[Jimmie Dickey]

@Phillip Y. The Harmon duplexes. 

[Phillip Y.]

Originally posted by @Jimmie Dickey:

@Phillip Y. The Harmon duplexes. 

Gotcha, thanks. I knew quite a few folks living there early 2000s