House flippers that are not rehabbing houses for student rentals with fix and flip financing Philadelphia are missing out on a huge opportunity!
Buy-and-hold investors are making a lot of money from student housing in this city. It’s lucrative! Many of these investors are eager to buy more and better student housing.
Three factors suggest it may be well worth your time to check out the student housing rental market in Philadelphia and see if you can find rehabbing opportunities.
Philadelphia is a big college town
More than 120,000 college and university students are enrolled in schools in Philadelphia, making it one of the largest college towns in the United States. That number goes up to nearly 300,000 when you take in the metropolitan area. The University of Pennsylvania alone has over 40,000 students, but then think of all the schools of higher education we have around here. Ranked in popularity after UPenn, we have: Villanova University, Swarthmore College, Haverford College, Temple University, Drexel University, Thomas Jefferson University, and many more!
All those students need to live somewhere. Rent prices tend to be stable in the areas around universities and colleges. Investors don’t have to worry so much about volatility because as long as the schools are doing well, there will be students and renters.
Student housing is a profitable niche of real estate investing
To be clear what we mean by student housing in this article are the houses and apartments near schools that are rented out primarily to students. What I’m about to say may cause you to want to become a buy-and-hold investor. A four-bedroom single family home could be rented out to a family for $1,700 a month, but if it’s near a college and was converted into a six-bedroom student house, it could rent for $695 per bedroom, a total of $4,170 per month. It’s not hard to convert single family homes into student housing, especially with fix and flip financing Philadelphia.
Here’s how to rebab for maximum return on investment
Find the buy-and-hold investors who are renting out homes to students. Check on vacancy rates. Determine where the demand is high for more student housing and then see if you can find distressed houses in those areas that could be rehabbed into student housing with fix and flip financing Philadelphia. Talk to investors that are doing well with their student housing properties and they will tell you what you would need to do to a house for them to buy it. Usually what they want are more bedrooms and durable finishes. Granted you may also need to look into municipal regulations around student housing, but it’s good to know what buy-and-hold investors want.
Student housing rehabbing with fix and flip financing Philadelphia can be highly profitable when it’s done in the right market and in the right way. If you do your homework, you could add a class of rehabbing to your flipping business that will really pay off in the years to come.