Investing in a college town, yes or no?

[Shelby Willitts]

My daughter is away at college (Oregon) and we are thinking of buying a place for her (and some roommates) to live in after her dorm stay is over. What are the returns like for a rehabbed rental in a college town? If you upgrade flooring and kitchens/baths are you able to get more in rent? Also (aside from college aged partying) what are the rates of damage (should I charge a higher deposit in an area like this?) and non-payment of rent among students vs. a single family? I am just wondering if the numbers make sense on a BRRRR strategy when the area has a consistent clientele like this or if there are more risk factors to account for?

[Jonathan Greene]

College area investments can be very lucrative. When it's not your kid, you get the parents to co-sign the leases. I like to be near schools with graduate programs so you have more options for older kids. I also think most college town investors forget that you can rent single-family homes all day to adjunct faculty each year who come with their family. They are the best college renters by far IMO.