<p>My DD is a sophomore and is starting to look at apartments for next year. We are having serious sticker shock. The prices are 700-900/month for her to share an apartment with a friend or 2 or 3. So we started looking at condos for sale. We can buy a 2 bedroom condo, rent the other room to a friend (for probably 500-600) and safe several hundred dollars a month. Has anyone ever done that? We also have a son who is a senior and is thinking about the same school. If we knew he was going to the same school I think this would be a no brainer. We would not make them live together but she could live in it for two years and then he could. Thoughts?</p>
<p>Is it in a place you’d like to live yourselves? A lot of people do that in our college town but it is a place people want to retire/have a second home/etc. What would you do with this place after one or both kids is done living in it?</p>
<p>Renting is throwing money down the drain in some ways but home ownership has its own drawbacks, as I am sure you know.</p>
<p>I briefly looked into this when I saw some of the room and board fees. At some schools it certainly seems the way to go. </p>
<p>Thanks for starting the thread. I’m curious to read the experiences of folks who’ve taken the plunge. </p>
<p>A lot of people do that where I grew up. However they live close enough to check on things and take care of any maintenance issues. I’d think twice if you are far away. </p>
<p>I looked into doing this and decided the headache of being a landlord was not worth the effort. Once a lease is signed, you have some obligation to the tenants for maintenance. So any savings that might be there could be easily offset.</p>
<p>I do know of two brothers that shared a 2BR/2BA unit that their parents bought. In this case there is no lease, and the Dad says things like “oh, the toilet’s broken? Go to the hardware store and get parts.” That’s a setup I could probably handle.</p>
<p>It is not uncommon in my city. The flagship is here so sending multiple kids is pretty typical. It can make sense in some cases. There are a couple of scenarios where I woukd consider it. </p>
<p>You need to do a detailed analysis. Can you tie up your cash (down payment) and use up your borrowing power without feeling the hit in your ability to pay tuition? Do you have the time to manage/fix/monitor a rental property? What happens when everyone graduates if the market is down in that area- do you dump it for less than you paid, keep it and have to grit your teeth dealing with strangers every year?</p>
<p>I know people who have done it and it worked beautifully- nice cash flow to cover the mortgage, a broken toilet or two during the year but nothing major, unit appreciated a bit when they sold it and everyone felt like it was a win/win. I know people who have done it and it has been terrible and financially horrendous. They’ve either sold at a loss which they could ill afford to take pre-retirement, or the ongoing expenses of maintaining a property with a 9 month tenant have been much higher than anticipated. Don’t forget- the unit is likely empty in July and August, so by the time you discover there’s a broken window, you probably also have birds nesting underneath the sink (or worse). Or the tenant who is not your kid has the entire lacrosse team move in for the summer and by the time your kid moves back in September, the unit has been trashed and there are no locks on the front door. Oh- and the $800 security deposit the other kid paid barely covers to repaint the graffiti on the walls, let alone fix the frig, oven, etc.</p>
<p>Not for the faint of heart, and not for someone counting their dollars. But if you can afford the risk of a market downturn when it’s time to sell, and potentially can afford a local management company to keep an eye on the unit so things don’t go to hell over the summer- worth thinking about.</p>
<p>There can be a lot of unexpected upfront costs–that’s what we found when we looked at this.</p>
<p>Thanks for your input. Actually my daughter would probably live in it through the summer also. She knows who she wants to live with and they will both be in a professional program (she was her roommate freshman year). I think they will both have to stay the summers to intern and take classes. The hesitation I have is the maintenance and the condo fees. </p>
<p>I have a friend who did that with her dd. The girl has long since graduated, but they have kept the place rented. The dd was in a sorority, and the condo has been passed down to sisters over the years. </p>
<p>If you don’t live close by I would avoid buying one… Never fun to be a long distance landlord.</p>
<p>My friend did this – a second child is now using the apartment and her third child is applying to the same school as well. It is working out very well for them. The school is about two hours from where we live so they do get to go down periodically to visit and make sure things are in order in the apartment. Be aware that this arrangement does put some responsibility on your child to be sure the friends/roommate(s) pay the rent and take care of the apartment, so talk to your child before you seriously consider this option and be sure he/she would be willing to take this on.</p>
<p>I own two condos in a college town. My kids never lived in either one. Both are Game Day condos. </p>
<p>However, since I know what town the OP is considering, it may not be too risky of an investment. The condo could either become a rental for her two kids (if son goes) and other students, or could later be turned into a Game Day condo. </p>
<p>Frankly, once the kids are out, I would turn it into a GD condo…less risk. Once your kids aren’t present, you lose a family set of eyes watching over the place…and college kids are brutal on rentals. </p>
<p>things to consider…</p>
<p>while the price may be fine, HOA costs can be nasty. I pay nearly $200 a month in HOA costs for each of my condos (sometimes water is included in this cost, sometimes not.). </p>
<p>Electricity can run about $125 a month. </p>
<p>TV and internet can run another $150 a month. </p>
<p>Insurance is another cost, as well as basic maintenance cost. You have to identify a good handyman that can fix things since you won’t be there. </p>
<p>What price range are you considering? </p>
<p>We live in Minnesota and D (junior this year) is going to college in Florida. She loves the college but the party scene wasn’t for her. She brought up the subject of an an apartment off campus to rent but we found a 2BR condo that was very affordable. We made a low, low offer that the seller accepted. The place was in good condition but very dated (popcorn ceilings, shag carpet, harvest gold appliances). The association fee is $300/mo and the utilities are about $100/mo. We charge $500 for the roommate. We’ve had it for about 1-1/2 years. Her peace of mind and better grades away from the party scene have been worth it. In the meantime, I’ve spent several weeks down there working on the place and we plan to either flip it or rent it out when she graduates. It was a good decision for us but YMMV. </p>
<p>BTW…if I were to have a rental with students in it, I wouldn’t have carpet ANYWHERE…except maybe some inexpensive rugs to sit on…that can be thrown out after they’ve made them disgusting. ;)</p>
<p>there are many less-expensive hard flooring choices out there these days. Students will sweep before they’ll vacuum.</p>
<p>And if you’re going to allow pets, then carpet is really a bad idea. And if I had a DD in a condo, she’d have a dog…no question about it. </p>