Buying a rental property and renting it out for making passive income is a relatively stable investment in current real estate. Owning a rental property is advantageous in that the income coming from it shall not be subject to social security taxes. Rewards associated with this kind of investment include a variety of tax deductions, discounts on home repair costs, deductions in mortgage rates, and a lower cost of home insurance.
Top 5 College Towns Revealed In 2022
Looking at academic progress and socio-economic future for students, Austin stands out of 400 towns. The city, one of the most desirable college towns in the country, turned out to be a hot housing market in the last few years.
Austin is a place for international students who wish to pursue higher education. A number of colleges in the city are financially supportive of non-native learners, such as by offering scholarships and financial aid. Near the city, there are public and non-public universities that provide top-quality education to them.
Austin has revealed itself to be a buyer’s market in the upcoming year. Without a doubt, people who are willing to buy rental properties expect to grasp greater bargaining power. They will have more leverage in trade. The number of home listings is much higher in Austin. Since Austin real estate is cooling off, homebuyers will have multiple choices and less dependency on sellers.
In Gainesville, renting a place is more inexpensive than owning one. It draws the attention of real estate buyers who want to secure a continual return from a rental investment. Gainesville is a young college city that has more than one-third of locals enrolled at nearby universities, another core reason why housing requirements stayed on top in 2022.
Potential investors should look into the hot Florida market. Due to no personal income tax, Gainesville and other cities of Florida are great locations for home investment. The city of Gainesville gives the fantastic opportunity to lock in a fixed mortgage rate that usually hovers around 1.99 to 2.99 percent.
The town of Provo is a new locale with a lower crime rate. It is a place for precise education with four large universities that entice outlanders. The city has a lower cost of living than the national average. Private room rentals in Provo are found at the best affordability for students. It is ideal to set off a property rental business in this fast-growing town.
Home prices in Provo have fallen .47% at last. The number of properties sold in late 2022 has decreased miserably. Home sales dropped 28% from the previous year. As a consequence of many overpriced properties, fallen sales, and longer lead time, homebuyers are now ready to negotiate until they set the seal on a fine price.
Fort Worth, Texas
Fort Worth is a town full of university neighborhoods. A list of reputed private universities is located in Fort Worth. Every year, over 250,000 students enroll in higher education in Fort Worth. The majority of them are seeking rental homes near their institutions; UTA Fort Worth, Texas Wesleyan University, Texas Christian University, and Keller Graduate School of Management.
There are always 40+ home listings for sale near Texas Christian University alone. With all property types, there are more than 1,500 available rentals in Fort Worth. It indicates the high requirement for rental homes in this college city. New investors should be happy that Fort Worth has more than 2 thousand agent listings and 3.5 thousand available homes for sale in total that they can use for rental purposes.
Raleigh, North Carolina
Raleigh is one of the largest college towns in the US. Unlike many other cities in North Carolina, Raleigh has turned out to be a thriving metro with high demand for rentals. What does that mean? There will be a large audience for your housing business.
ROI on rentals is profitable in Raleigh. Rental property owners enjoy relatively lower property tax rates. The median rent for starter properties is $1.3K a month. The charge goes up as you make your investment bigger. On the other hand, you are getting homes in North Carolina at an affordable price with better mortgage options.
Investment in college towns’ rental property never goes to waste. Consider a neighborhood that is mostly home to young people, such as University Park or one near North Carolina State University.
Rental Investment In College Towns At A Glance
Doing rental property business in college towns shall not be as profitable as you expect unless you know how to work with difficult households. Buying rental property in a college town means working through high tenant turnover. To end every month with cash inflow, your rental property investment must be smart.