Parents, Students–A New Trend in Real Estate Showing Up in Collegedale, Tn.
There is a new trend in housing that has been showing up in Collegedale, Tennessee for a while and I see it beginning to trend elsewhere. Like the name implies, Collegedale is a college town; home to Southern Adventist University, a large religous university.
University housing is spread out throughout the town of Collegedale including dormitories, graduate student housing and faculty rental units. A lot of real estate is owned by the university. Students are required to live in supervised housing until they reach a certain age, however, most of them flee immediately, upon making the cut off, to independent housing.
Due to the continual influx of students and faculty, Collegedale is a terrific rental market, and many long term residents invest in real estate in the area and use it as rental property. There are a wide variety of housing opportunities. Duplexes are prevalent as well as converted single family homes. Apartment buildings with sixteen to eighteen units are also scattered around town.
What I have seen for a while is a growing trend for parents of college age students coming to the university, to purchase local real estate, a house, a condo or perhaps a duplex, and have their child reside in the property and then rent part of it out to other students.
It makes good sense. Often the mortgage payments are not nearly what the university charges for housing and then the student gains extra income from renting out rooms. This is a win-win for parent and stuudent. After the student graduates the parent will either sell the property or continue to keep it on the rental market as an investment.
I see this happening in downtown Chattanooga now and also in Knoxville, Tennessee, home of the University of Tennessee and the Tennessee Vols. It is good strategy to consider to offset the cost of college housing.
If you are interested in exploring this type of opportunity anywhere in East Tennessee or specifically Collegedale or Ooltewah Tennessee; please call me. I’d love to help!
