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Investing In Midtown Direct College Town Real Estate Can Pay Off Big

by: Sue Adler
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Making the decision to invest in real estate property within a college town can turn out to be a profitable endeavor if done properly. College towns are flooded with students in need of residence creating an ideal situation for an investor. The majority of college students are not looking to own the dwelling they live in throughout college placing your property in high demand for thousands of students. You have the opportunity to produce large amounts of residual income from college town properties with very little marketing efforts. Typically, properties in these college areas are highly sought after which will make the task of finding tenants and replacing non-paying tenants an easy one. It may even be possible to make more than you expected by pricing your units higher based on their great demand.

Right here in our Midtown Direct communities, we have several college and university towns offering these very kinds of investment opportunities.  Starting in South Orange with Seton Hall University home to eight schools with over 10,000 students, there is ample need for student housing in this quaint town filled with historic and period housing.

Heading west is the town of Madison with two very prestigious schools including Drew University and Fairleigh Dickinson University.  Madison is a lovely community with many good areas for investment in college town real estate.  Here supply and demand is definitely in the landlord’s favor and can offer a steady stream of income.

Then there’s Montclair, NJ – not directly on NJ Transit’s Midtown Direct Line, but close enough.  Montclair State University and nearby Bloomfield College and Caldwell College present reasons to research good college real estate in this beautiful community.

Invest in student areas within small cities or large towns 

Investing in large cities is not recommended due to the high rental costs there. To help ensure a steady flow of income from student rentals, look for smaller, less populated areas like those referred to above where you can afford to offer reasonable rates. Many student rentals in major cities have too much competition from surrounding rental properties and don’t really fit into the budgeted lifestyle of college students. Small cities and towns with universities in the area like South Orange, Madison and even Montclair have fewer commuters than major cities which typically mean more renters.

Invest in areas that have the potential to expand

Deciding to invest in real estate near a college town that is growing or has room to expand may increase your chances of purchasing a newer property that will require less maintenance. The average student is more likely to search in smaller cities or towns where new rental properties are much more affordable than in many of the major cities.

When searching for properties in a college rental area, also look for real estate that will accommodate multiple tenants.  Multi-unit dwellings can be much more profitable as the more tenants you can accommodate, the more rent you will be able to collect each month.

 Invest in college real estate in close proximity to the actual campus

If you are fortunate enough to locate rental property within walking distance to the university, that is an ideal situation and you should consider it for obvious reasons. One of your selling points to possible tenants would be the benefit of saving on commuting expenses to campus.  Seek college rental properties close to campus because of their high demand and constant flow of prospects.

Follow these tips and hopefully you can reap the benefits of investing in college town real estate properties. Choose a location that meets these guidelines and you may find a prime property that will prove to be a great investment.


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