Reply #4: I don't know of anyone who has bought a house and rented to [View All]

[Democrat 4 Ever]

students. A friend bought a house in the town where she had two kids attending college. Nothing fancy, structurally sound, etc. Her daughter and her friend used the two bedrooms upstairs, her son and a friend "dormed" in the basement. They had laundry room, quiet study areas, and short commute to campus (used public transportation).

Of course, the kids were pretty responsible, didn't wreck the place, had a nice quiet place to live and study close to campus and when they both graduated they sold the house for a nice profit to another family who was interested in avoiding dorm fees. They actually MADE money for the six years they owned the house. It didn't, of course, pay for the full college expenses for the two but it did pay many of them and both kids graduated without drowning in debt from student loans. This family is a "middle class" and couldn't pay for college outright. Both of these kids worked jobs, studied hard and it paid off. The rent paid by the other kids made the mortgage payment, taxes and insurance. Win-win for everyone.

Of course, this was back in the 90s when the adults were in charge of the economy, tuition was more affordable, grants and loans were available without breaking the bank. Not sure I would trust today's real estate market. I also think the success of this venture depended up the owners kids living in the house. They knew their parents would kill them if they trashed the place too bad.

Just remember you will be responsible for all upkeep, taxes, insurance, etc. And there is always the chance you will get a renter who won't pay on time - or not pay at all. Make sure you allow for all contingencies. You will also have to carry a significant insurance policy to cover your renters and their visitors. And make sure you meet all zoning regs and get certificates of occupancy as a rental unit that are required in your local. Just some things to consider.