Market Crash & Student Rentals?

[Daniel T Stockman]

Hi BP Community!

I'm wondering how a market crash might impact investment properties in a student rental market?  I am unsure a crash is coming but wondered how one might impact a buy and hold strategy focused on student rentals, in a college town.  

We are invested in a very high rental market and have a newer property (4 years old) and looking to purchase a 13-year-old property as well.  Both cashflow, currently, but with a crash how might things change.

Any advice would be greatly appreciated!

Thank you all!

-Daniel

[Dave Poeppelmeier]

If you are in a "College Town" where the town's survival is based on the College/University, you are more exposed to risk associated with a market crash/recession, initially. The initial reaction will be to drop out of school for those who's parents lost jobs, didn't want to be there in the first place, etc, but what we usually see is people go back to school to earn a different/higher degree during recessions instead of trying to get into the work force. If your school is in a large Metro area, you should be fine even if you have to drop your rent a little and rent to normal residents for a time until the initial shock wears off.