College Rental- Tips and Advise Needed

[Jennifer Matsumoto]

I am looking into purchasing a SFR very close to a University in Orange County. Since the college students value their own bedroom, having a laundry room, and ample parking.. they are willing to pay higher rents than what most of the other SFR in the area would rent for.

I'm looking for tips from other investors that have properties that they rent to College students. (i.e. basic rental terms, requirements on co-signing, any things to look out for, etc). 

Another item I am trying to figure out... This property needs  A LOT of work.  We are trying to figure out if it makes more sense to save some money on the rehab and just do the basics and musts.... (like leveling the floors, patching holes in walls, changing out the broken windows, painting and moderate Kitchen remodel, skip the permits on the remodel etc) .  Or should we fully update (look into getting unpermitted bathroom permitted, taking down walls, adding new floors, fully remodel all bathrooms and kitchen, permitting all remodel areas).  The cost difference seems to be about $40,000 and the rent difference LOOKS like it is $3700 with a basic remodel... to $4200 to a full remodel.  Is it worth it?  Will the college students really care that much with a upgraded home (or are they looking more at the prime location and convenience?) This property is closer in proximity to the school than some of the other nicer properties that the students pay $4200 for.

Any thoughts and tips would be helpful!!

Thanks, 

Jennifer