College Town

Fix-and-Flip In a College Town (and the Top 10 College Areas to Invest In)

With a constant need for housing and often a lack of availability, college towns become ideal for those looking to invest in fix-and-flips and fix-to-rents. With many colleges pausing in-person learning for the past few years due to Covid-19, everything has resumed to normal and college towns are back to being flooded with students, reinvigorating the local economies. Because of the consistency in population and lack of housing near colleges and universities, the market is not as volatile as you would see elsewhere. This stability makes college town real estate investing extremely attractive and quite obvious. But let’s go into depth about investing in a Fix-and-Flip in a college town. 

Advantages and Opportunities

Within college towns, the real estate is isolated from the market as a whole and is dependent on different factors. Three words can describe investing in a college town: Abundant, Consistent, Reliable. Fix-and-Flip in a college town have numerous benefits including:

  • Easy to Sell or Lease – You won’t be the only one who knows that college towns come with great benefits and opportunities. Therefore, there will be many eager to buy a property quickly so they can begin renting it for the coming school year. On the other hand, if planning on completing a fix-to-rent, the abundance of students ensures that your property will not remain vacant for long, if at all. 
  • Schedule of Leasing – Because schools operate on an academic calendar, you will be able to predict if there will be any gaps in leasing and make changes based on such. Most collegiate real estate leases are signed annually, between semesters, with the summer break being the most common for the beginning and end of leases. Many leases include multiple tenants and are signed for multiple years. 
  • Appreciation – One thing that is amplified by the college town market, in comparison to the general market as a whole, is that the appreciation of properties is much more exponential. College towns are continuously developing and renovating, creating a wave effect of appreciating real estate. In addition, the closer you are to campus, the better off you are. Being situated between the campus and college town can be even more beneficial to your property’s appreciation. 

The Disadvantages

Nothing is perfect, including investing in collegiate real estate. Here are some things that stick out as negatives to this process:

  • Damages and Maintenance – College students have a reputation of being more destructive and careless about their living environment, branching from the party-lifestyle accompanied with many colleges and universities. Consequently, there may be more frequent maintenance costs, though it could be due to the high-turnover of tenants instead of the immaturity of the college-aged tenants. 
  • Frequent Turnovers – Students have a tendency to change residences every year. Like stated before, this increased frequency can lead to a reflective increase in the frequency of maintenance costs. As well as this, short leases can possibly lead to vacancies. And although they may not last long, it is still a hiccup in the investing process. 

LenderFi.co can cover up to 90% of the loan-to-cost (LTC) and up to 100% of the repair costs. Click or call today to see if you qualify for financing a Fix-and-Flip in a college town!

Top College Towns to Invest In

When looking into investing in real estate within college areas it is important to take note of the growth of the university/college, local amenities, and appeal for young professionals. Here are the top 10 college areas we believe are the strongest to invest in:

  1. Raleigh, North Carolina – North Carolina State University 
  2. Sioux Falls, South Dakota – University of Sioux Falls, University of South Dakota
  3. Tempe, Arizona – Arizona State University
  4. Gainesville, Florida – University of Florida
  5. Columbus, Ohio – Ohio State University 
  6. Tampa, Florida – University of Tampa, University of South Florida
  7. Mobile, Alabama – University of Mobile, The University of South Alabama, Alabama State University
  8. Fort Wayne, Indiana – Indiana Tech University, Purdue University Fort Wayne Campus, Indiana University Fort Wayne
  9. Knoxville, Tennessee – University of Tennessee, Lincoln Memorial University, 
  10. Virginia Beach, Virginia – Embry-Riddle Aeronautical University, Atlantic University

How do I qualify?

LenderFi.co is your one-stop-shop to help you with  financing!

Click to see if you qualify!

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Ryan Thaler

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We provides superior asset-backed investment solutions for individuals, institutional clients, family trusts and our own syndication/development partners.

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