College Student Housing

NOT EVERYTHING AT COLLEGE HAS TO COST YOU MONEY –
INVEST IN STUDENT HOUSING – AND YOU COULD MAKE SOME!

Instead of throwing money away on a dorm room or apartment, why not make an investment? You have to pay for your student to live somewhere.  Sometimes, buying instead of renting is just smart.

For example:

On Tiger Transit – gated community with pool and fitness center on site! 3 bedroom, 2 bath – condo sold for $72,800

Approximate mortgage payment
Property taxes
Insurance
Homeowners Assoc. Fee
Income –charge 2 tenants $335 ea.
$278
$692/yr    $ 57
$700/yr    $ 58
$175
+ $670

Your mortgage is paid, you pocket about $100/mo. and your student lives for free in a roomy place with his/her own washer/dryer and a screened-in porch!

By the time your student graduates you have an asset that may be worth more than you paid for it – especially if you can find a foreclosure like this one, priced under market value.  Sell it at graduation and you could walk away with a tidy profit!

 

On the Tiger Transit route:
This duplex has 3 bedrooms, 2 baths on each side and sold for $130,000:

Approximate mortgage payment
Property taxes
Insurance
Homeowners Assoc. Fee
Income –charge 5 tenants $275 ea.
$497
$1570/yr    $130
$700/yr.    $ 58
$ 50
+$1375

Your mortgage is paid by your tenants and your student lives for free!  You pocket about $640 every month – which you can spend on tuition & textbooks!

No tiny rooms with no storage.  No horrible landlords or dumpy property that isn’t properly maintained for your student!

And these are just a few examples.  We have student houses available in a wide range of prices, some with little or no  home owners fees, and great rental potential.   And with all the great deals on condos in this area right now, we can help you find an awesome deal of your own!

What’s available now?

There is no cost to you to work with a Realtor® – so why would you go it alone?   We know the Auburn student housing market and have great team of local experts (lenders, home inspectors, property managers, etc) who can make it easy for you to own your very own little piece of Auburn.

Here are a few things to keep in mind.  How can we help you?

Financing Issues

Downpayments for student housing options are usually at least 20%, if you already own a home. This will be considered a second home or investment property so most lenders will require this downpayment. The good news is that you probably won’t have to pay for mortgage insurance on this loan!

We can put you in touch with a local lender who will finance any condo – even non-warrantable condos – for only 10% down. Contact Cathy or Jack for details.

Second homes don’t qualify for the Homestead tax exemption. The good news is that the examples above took that in to account and still netted a profit!

Federal Housing Administration (FHA) offers something called a ‘kiddie condo loan’. This loan program is designed to allow both students and non-students to purchase a home with a blood-relative’s good credit standing and cash, according to MSNBC. These homes qualify for all tax advantages of a primary residence and require only 3 percent down. The owner-child can build a positive credit history. The tax benefits, like deducting mortgage interest and real estate taxes on a Federal Income Tax return, can be divided among the owners, according to who pays the expense.  See your own tax advisor for details on tax benefit and talk with a local lender for more details on the ‘kiddie condo loan’.

Tiger Transit

You’ll want to make sure your student housing is on the Auburn University Tiger Transit route. Tiger Transit provides bus service for your student within and near Auburn University. There’s no place to park on campus so everyone uses Tiger Transit. Having a stop close by is a good thing. If you find a great property which isn’t on Tiger Transit, we can help you find out about transit options. You can see the complete route list here http://www.auburn.edu/administration/parking_transit/transit and can even download the official AU mobile web app to track the buses on their routes in real time from the iTunes Store or Android Marketplace. See www.auburn.edu/app for more information.

Property Management

If you don’t want to deal with finding tenants, collecting rent, and dealing with repairs, property management might be a good solution. We can help you find a great property manager so you can be a hassle-free owner.

 


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