Buying a duplex for college rental.

[Jarrod Deshields]

I've many older forum posts about college rentals but I wanted to reintroduce the topic for a more fresh perspective.

I'm getting myself in position to purchase a 3bed 1bath duplex locally. This will be my first property. The asking is $70k with very light rehab already done. The rehab will run about$65k. ARV about $180-195k My optimal strategy would be to rent it out to students $400 a room. I have other plans but "Plan A" brings me rightly $1k in cash flow. I plan on using the Fannie Mae homestyle renovation loan for the deal.

So a few questions:

1. Do I (or does anyone suggest) get any special insurance?

2. Do I need to register my housing with the university?

3. How do you suggest I vet my tenants who may have little or no credit?

*More questions to possibly follow

Thanks for any and all input.

[Sam Shueh]

Seeking insurance could be problematic. Most big name decline renting to students.

You need to have parents co-sign.  You need to assume summer vacancy with no income.

You need to have latest fire protection system and carry ample liability insurance. 

I doubt school wants to have anything to do with housing. Hang a sign outside. Craigslist.

If you are close to campus you can rent out parking spaces. If it is more than a few blocks away students will unlikely to be interested (<0.5 mile).