Newbie looking for Binghamton, NY advice for college rentals.

[Michael Bocian]

Would love to discuss the market in Binghamton. My daughter is a freshman and I want to see if it makes sense to purchase a multi-family unit close to the school for her and pick up some rental money as well. 

[Stephanie Jacobson]

@Ronald Starusnak thats good feedback, thank you.

There wasn't really a question asked, just implying that he's looking for student housing in the area. I can assume some questions and give more info.

@Michael Bocian I completely disagree with Ronald on this one. Buying a rental property for your daughter to live in during school is a brilliant idea and more parents should do it. This is a very wise way to invest. As I'm sure you've figured out, living on campus at a SUNY school costs upwards of $1,000/month, and that's with your daughter sharing a dorm room, bathrooms, co-ed housing, etc. Purchasing an investment property for her makes much better financial sense for a number of reasons (see below), and has the added benefit of giving her some control and autonomy in her living situation.

@Gary Kline is absolutely right when he says student housing varies greatly depending on the area. The best options are always on the bus lines. There's a wide range of property types- single families with a normal amount of bedrooms (2-4), single families with more bedrooms, or multi-families. The property's condition, setup and location will largely dictate the kind of tenants you'll attract, but for the next three years it will probably be your daughter who's determining the tenants. If you trust her, then you can (mostly) rest easy until her graduation.

There are ways to deal with liability. Get good insurance that will cover the property both as a rental and a business. Gary or your lender could probably tell you more about that. I always advise my investors to use leases that protect them: having parents co-sign is a big one. Making sure each student is listed on the lease is another. Yes, as a whole, students cause more damage and typically turn over every year. But unlike market rentals, you have the added safety of their parents to back you up. Don't shy away from the student market because of these issues, unless your goal is to never deal with tenants ever. If that's the case, maybe don't invest in real estate, haha! But it doesn't seem like that's what you're thinking.

As per our DM conversation, I'll get you set up for a search in the Binghamton MLS. We'll chat more there.

tl;dr: buying a property for your daughter at BU is a great idea.