UT Condo Complexes--> Good investment?

[John Blanton]

Looking to get involved in the Knoxville, rental market. Currently hold three condos in NC and saw Knoxville is a very strong rental market, especially near UT. In researching of course have come across many units for sale in the Woodlands and other surrounding condo communities. The rents seem strong per bedroom and the units themselves look quite nice. Does anyone have insight to the appreciation opportunity and if anyone has had experience with these type of properties?

Thanks,

John

[Abbott Mary]

Hey John, I don't have any experience owning condos near campus, however I have heard bad things about The Woodlands for investment. Rent seems to be around 500/room from what I can tell and sales price seems to be close to 40,000. If that puts you at around a 1.1% return before HOA fees i'm not sure its a good deal. I'd be interested in your numbers though as I'm just giving it a quick glance. Also the 100+ days on market for a lot of these worry me, if they made money they'd have sold in this market IMO. I'd love to see your numbers though as I could be mistaken.