College Room & Board Vs. Investment Property?

By avalonrealestate

Have a student who will be attending the University of Central Florida?  Then, no doubt you have been studying the costs of housing and meal plans!  It can be mind blowing.  I took a quick look at the annual housing rates on a 4/2 unit and added the cost of a meal plan (Knight’s Plan) and it looks like many of you will pay $1138.35 per month — amazing!  And that is money that won’t be yielding any return on the investment — unless you hope your kid will support you some day!!

Now, consider this…purchasing a 3/2.5 townhome within 15 minutes commute of UCF in the sought-after Avalon Park area, with 10% down and with the monthly mortgage split 3 ways (your kid and 2 roommates), the monthly P&I could be covered for as little as $500/month per person plus food.  Does your kid eat more than $600/month in food?  If not, this might be a great alternative for you to explore!  Save money, build equity, create a unique environment for your child. Hmmm…

4 Responses to “College Room & Board Vs. Investment Property?”

  1. Erik Hersman Says:

    Debra, I’m glad you decided to do this site. Since I live over in E. Orlando as well, I know you have a ton of things to discuss.

    This whole idea of buying rather than renting for students makes a TON of sense. Good info, keep it up.

  2. avalonrealestate Says:

    Thanks!

    Don’t forget to stop by the “Absolutely Avalon” event on Saturday from 5pm-9pm at the Avalon Town Center! This event always draws a big crowd.

  3. Jerry Vega Says:

    Consider other costs. Taxes, utilities, insurance, homeowner fees, maintenance, upkeep and repairs. Do local ordinance allow for multiple tenants?

  4. avalonrealestate Says:

    Hi Jerry,

    Seems many decisions boil down to a cost versus benefit analysis. For the right situation, it can be a tremendous experience for a young adult. Yes, there are other costs to consider, along with the maturity of the son or daughter involved and the “college experience” the parent is attempting to create. I have a number of very positive stories from people who have taken the plunge and made the investment work well for them and their child, with a nice ROI at the end of the four years.

    Each community/home owners association will have it’s own by-laws as it relates to tenants so it is important to work with someone who understands the area and the various associations in play.

    Thanks for your comment. I welcome further discussions at any time.

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