Pros and cons of buying a house near UMN-campus for student renting (Minneapolis: rentals)

[sunsoul]

I'm thinking to buy a Single family house near UMN-Minneapolis campus for investment purpose. That means, I would be renting it to students and hope that part of monthly mortgage will be paid through rent. I also hope to sell it later .....like after 10 yrs and hope to make good money on it.

But in the process, I'm making lot of assumptions and I would like to hear from other people what are the factors that might make it a bad investment. I think that in the university area, housing is always in big demand but how good or bad students can be ..I've no idea. Also, if I sell the house after 10 yrs. then who's going to buy a house in university area...bcoz families don't like to live in the area and students can afford to buy a house. Has anybody on this forum had any experience with housing in UMN area. All suggestions are appreciated. Thanks.

[Cruz Azul Guy]

Before you do that you should also consider that there are still families living in those neighborhoods and they have set rules and guidelines to prevent more single family housing to be converted to multi-unit rentals. Any non-rental owners in the neighborhood reading this post right now are probably getting red in the face and shaking their fist at the computer screen.

[sunsoul]

Originally Posted by Slig

Before you do that you should also consider that there are still families living in those neighborhoods and they have set rules and guidelines to prevent more single family housing to be converted to multi-unit rentals.

I did not know anything about this. This is a new info. for me.

Originally Posted by Slig

Any non-rental owners in the neighborhood reading this post right now are probably getting red in the face and shaking their fist at the computer screen.

I didn't mean to hurt anybody but me and my husband have lived in an apt. very close to univ.(in dinkytown) for 4 yrs..until we were student and never saw a family with kids, not working for univ. living in that area. Some student family may choose to live there out of necessity but what I meant was that other people may not like the area to permanently live there. When we were there Friday nights were big parties all around...lots of cops...and staurday morning would be dead as if nobody exists in that area.

Anyway, I'm sorry if my post unintentionally hurt somebody's feelings.

[Cruz Azul Guy]

Please review this article that recently came out in the startrib:

A little pushback in U rental market (http://www.startribune.com/local/37854834.html?elr=KArksUUUU - broken link)

[sunsoul]

Originally Posted by Slig

Please review this article that recently came out in the startrib:

A little pushback in U rental market (http://www.startribune.com/local/37854834.html?elr=KArksUUUU - broken link)

Thank you so much. I'm going to read it...thanks.

[uptown_urbanist]

Check out the renting forum, too. There's several posts about the pros and cons of renting to students. While I think students too often get hit with unfair blanket statements (I always paid the rent on time, took care of my place, and was, I think, a decent tenant) it's probably true that as a group they're far more hands-on.

[Cruz Azul Guy]

It depends on the tenants, there are also tenants that take very good care of their place but then throw a party for 150 people. There is no way you can throw a college party without at least something breaking or getting horribly stained. I don't know what percentage of college students throw parties but it's pretty high. Unless the students you're renting to are in health and wellness chances are they will throw at least one party.