Kiddie condo /College housing

[IndianaPrincess]

She may want to join a sorority and live in the sorority house. Those were good times (no parties in the house!) It's impossible to predict what direction she will pick now - I'd wait until she's finishing up her freshman year!

 

[Katy Belle]

We had considered doing this, as we have 3 boys that will overlap a bit in college years. We were talking to some friends who had done this, and don't recommend it. Their child had roommates, and thus, became the landlord. It didn't work out very well. They child had to be the one to kick people out, collect late rent, etc. They didn't end up with very responsible roommates and they sort of regretted the whole thing.

For me, I guess the biggest reason I wouldn't do it, is that I don't want me 3 boys to feel obligated to all go to the school the oldest one chooses.

Good luck!

 

[crisi]

BTW, don't forget the TVM (interest rate) calculations. Either you are going to have that money out of your investments and into real estate (where gains are expected to be flat for several years) or you'll have a mortgage. That's what's really killing us on the idea that we will "break even" - the interest charges. Real Estate has been volitile lately. You could do well. You could not do so well.

 

[momxx5]

Around here most colleges require freshman to live on campus for the 1st year.

Then a lot of kids end up in frat houses/soritity houses for a least their sophmore year.

Then usually to an appartment...whether it be college owned or private.

All that said I would look into all areas before deciding to purchase. Is the neighborhood considered college area?

 

[EdiePA]

I live in a townhouse near a couple of colleges. You might want to do your research because our townhouses require that each home be OWNER OCCUPIED. We do have some grad students who own here, but not your typical undergrads.

 

[Mic]

We have friends that purchased a house near UNC-Chapel Hill 10 years ago for their daughter to live in while going to school. She had a few roommates, and the parents were close enough(1.5 hours away) to take care of any maintenance issues. It did not hurt that their daughter was very mature, either. They were able to sell it for a nice profit when their daughter graduated...but that was before the market bottomed out. They will probably not do the same thing when their youngest goes to school in a few years.
My husband and I have just started considering purchasing a house or condo for our children near the campus where two of them go to school. Our oldest is only 45 minutes away, so she commuted the first year, lived in a sorority dorm her sophomore and junior year, then moved off-campus her senior year. Her apartment was 3 blocks from the school, so she walked to campus most days. There was a bus system, but she was afraid to use it. Cost-wise, the apartment was about the same as living on-campus if you factor in the meal plan that she rarely used. She was the first of our 4 to go to college, so she did not receive much financial aid. The second daughter is a junior at a campus about 2 hours away, and lives in a sorority house. She has satisfied her requirement of living at the house, unless she is elected to an executive position for her senior year, then she will stay for a third year. Our son is a freshman at the same campus living in a private-run dorm on campus. He is not as social as his sisters(probably because he is a year younger than most of his peers), and has not really enjoyed any of the on-campus activities. He is finding it too loud to study in the dorm, and thinks the internet speed is too slow to tolerate. Living off-campus might actually be better for him. Our youngest daughter is a junior in high school, and is "talking" of going to the same school as her middle sister and brother. If that happens, then I will have 2 kids at this same campus for at least the next 3 years. Middle daughter wants to do an internship that will require an extra semester, and my son can not wait to do an internship in his field(engineering), so he will definitely be there for 4+ years. It is possible I will have 3 kids there at once. I would still want the youngest daughter to spend a year on campus, and I am not sure I would want to risk being dependent on roommates to pay the rent/mortgage. We could possibly save money with just our kids in the condo, but I would need to research how owning another "home" would affect our taxes and federal financial aid. In my oldest daughter's case, there were "shady" areas near campus that she learned to avoid, so we did not even look for apartments in that area. Someone who had not spent a year on campus would probably not know that. Also, a year on campus gives the OP's daughter a year to make friends, get used to a college class schedule, and likely be safer. The spring of her freshman year would be a good time to start looking at properties if you decide that would be the way to go.

 

[mistysue]

No matter how responsible or stable a person your DD is, nobody really knows if she is going to hate the school and want to transfer. It happens a lot, especially at smaller schools. In fact, most of the graduates of my high school who went to colleges transferred by the time they graduated.

I knew a family who did this, and both kids did graduate from the same school but the second child was forced to go to the choice of the first one. The school didn't fit her at all. It could end up being completely unfair to the second child. It also (like PP's have said) really limits a new students ability to socialize and situate within a new environment. What if either of your DD's join a sorority and want to live in the house? Nope, they have to live in that place dad picked. Then your DD's also have to be their friends' landlord- which can be a disaster waiting to happen and put them in a horrible position. If they move to a new town how are they supposed to find roommates right off the bat? Do you want them just finding random people in want ads?

 

[Fyrefly]

I think a lot of what has been said has already been touched on, but I really don't think the condo is a good idea, at least for freshmen year.

The freshmen dorm experience is critical. Even if your older daughter is outgoing, living off campus, she won't see the flyers for the free movies hanging on the board, she won't get the spontaneous trips for ice cream from the dining hall organized by that one kid knocking on everyone's door, the late-night jam session with that guitar-playing kid in the lounge. These are the best moments. More academically, if there is a study group at 11pm, will she be able to get back to her condo safely at 2 am? Don't knock that idea, college kids are nocturnal. I'm still nocturnal and I'm supposed to be a responsible grad student now.

Yeah, dorms really suck and they can be loud, but it's where the school becomes YOUR school, where you meet YOUR friends. There are crazy statistics about how much more often off-campus freshmen drop out, and a lot of it has to do with not getting that social network established.

Let her have a dorm for at least a year. If there is a way her and two of her new friends can go into the condo and save money (and the mortgage for you), then go for it.

Frankly I think the experience of being college students is more important than coming up with the absolute perfect financial situation. What works out money-wise ends up making HER lose out on the on-campus conveniences and events, making friends, the opportunity to move in with people she likes, and all the issues of living with noisy people, dealing with weird landlords upon moving out on her own, exploding toilets... things that are part of life that she needs to learn to deal with.

The last thing I'll address is I'm pretty sure she can't pay any potential scholarship money to you as rent. Unless you set up yourself as an actual landlord with a company to which she can physically pay rent I'm assuming, otherwise it will basically be you pocketing money that should be used towards university expenses.

 

[malibuconlee]

You keep mentioning that the costs will be ZERO (once sold, provided it sells for at least what you paid for it). But won't there be electricity costs? Gas? Phone? (maybe?) TV? Costs like that??

Maggie

I was thinking and started to post the same thing earlier today.

Realtor fees for selling it, closing costs when you buy and sell, if it's a condo the monthly fees that may be charged by the association, maintenance, everything that goes with owning a home.

I did know one guy at Iowa State who bought a trailer in the trailer park because it was relatively cheap and very close to the vet school he was attending. Usually lived alone, but did have a friend move in one semester. Actually now that I think about it I did know a family that did that at A&M. Bought a trailer, their son lived in it, DIL moved in after they got married when they were 20, and a couple of years later a younger son moved in.

Not exactly a big investment, but lot rent was much cheaper than rent somewhere else and no one I knew lived in a "nice" place anyway.

 

[fletchers5]

I didn't read through all the responses..so sorry if this is a repeat..


One thing that I see as a PLUS is the fact that you can right this off on your taxes as a rental. If you are having your daughter or anyone else that would be living there paying rent..then it would be considered a rental and that is a great deduction on your taxes.

 

[delmar411]

My parents did this. My sister is living in a condo in Richmond that they bought for her to live in. Housing was only guaranteed for freshman and she didn't win the lottery for a room after the first year so they had to do something. It was/is pretty pricey though since it had to be on the bus line and close enough to school for my sister to bike (she doesn't drive) and close to places to get some groceries.

Hers is just a 1bedroom though so no roommates and they bought it brand new so no maintenance issues either. My parents are no sure they are going to be able to recoup their costs though since the market has bottomed out, sales aren't going that great and there are still empty brand new units in her building.

That's just something to keep in mind, if you can't sell it at the end of school, can you really afford to keep paying for it?

 

[MrsPete]

Is your husband being overly optimistic about the financial reality of the condo? Is it really SURE to appreciate in value, or stay even? Have you looked at real estate trends in the area?

Of course nothing's sure these days, but we haven't been hit as hard as other areas of the country. His argument is that if it AT LEAST holds it's value it's a good deal, and I really do think we wouldn't lose money on the deal. I'm just not sure it'd be worth the effort it'd take, nor am I sure that it's the best choice for her.

From a parent's perspective one of the great things about the dorm: maintenance department.

Yeah, that's one of my concerns . . . one of his gloss-overs.

If they were so cheap wouldn't people just hoping to make money and rent to students and tourists have already scooped up the good ones . . . What about transportation?

People DO buy these just as investments, not because they need to house their kids.

Transportation's covered by free student busses that run through the college and around town -- out to restaurants, shops, Walmart, and the grocery store -- but I wouldn't choose a condo that wasn't walking distance to the college.

By the way, IMO "kiddie condo" is really a yucko term. Just say you're thinking of buying a condo for your adult daughter in college to live in...don't make people wonder if you're talking about a play structure for cats...

Kiddie . . . kitty . . . I'm not confused. I didn't coin the phrase. It's been around a while.

Really push that angle with your DH. If DD is in the dorm there will be campus security, lots of other students around and RA's. I got very sick once when I was living in the dorms.

I do think safety is the thing that's going to convince him -- at least for the freshman year.

She may want to join a sorority and live in the sorority house. Those were good times (no parties in the house!) It's impossible to predict what direction she will pick now - I'd wait until she's finishing up her freshman year!

Nah, she's not a sorority type of girl, and I don't see that changing.

We had considered doing this, as we have 3 boys that will overlap a bit in college years. We were talking to some friends who had done this, and don't recommend it. Their child had roommates, and thus, became the landlord. It didn't work out very well. They child had to be the one to kick people out, collect late rent, etc. They didn't end up with very responsible roommates and they sort of regretted the whole thing.

This is a very good point. I know people whom I like very much, but who aren't really financially responsible. I wouldn't really want to tangle my living expenses up with theirs.

BTW, don't forget the TVM (interest rate) calculations. Either you are going to have that money out of your investments and into real estate (where gains are expected to be flat for several years) or you'll have a mortgage. That's what's really killing us on the idea that we will "break even" - the interest charges. Real Estate has been volitile lately. You could do well. You could not do so well.

Yeah, I'm not at all interested in doing this to "break even" -- I don't think he would be either. IF I could know that he's right -- that the second child would pick this college, and that we could actually recoup the cost of two college students' housing x 4 years -- I'd be tempted. But that's assuming that EVERYTHING went our way: the second child chooses the same school, the furnace never breaks, etc., etc., etc. I don't want to go to the trouble to choose a condo, maintain a condo, sell a condo . . . just to break even. No thanks.

In fact, most of the graduates of my high school who went to colleges transferred by the time they graduated.

Really? I knew very few people who transferred schools.

My parents did this. My sister is living in a condo in Richmond that they bought for her to live in. Housing was only guaranteed for freshman and she didn't win the lottery for a room after the first year so they had to do something.

My daughter could end up in this situation. The school guarantees freshman housing, but they don't guarantee upper-classmen housing. However, I understand that this isn't usually a problem, and that students who file paperwork on time for the next year don't usually have a problem getting sophomore-junior-senior housing on campus. Anyway, I can't make a decision about what might happen with a lottery that might happen after her first year!



Well, after reading quite a few responses, I am inclined to stick with my original opinion: The savings aren't likely to be worth the effort /loss of opportunity on campus. My husband, being more optimistic than I am on the subject, will respond to the details about extra costs (which would whittle away at his perceived savings) and safety. Safety being the trump card.

Having started in community college and having only visited dorms on the weekend, he gives NO credence to the social aspect of living in a dorm, as I said earlier, being completely convinced that they are only one small step up from Hell.

I think if he pushes it, I'll schedule a weekend to go up and look at places . . . and then after we look, I'll insist that we go at midnight to walk from the library or the Student Union to the condos we've looked at. With any luck, it'll be cold, rainy, and -- most of all -- empty. He's a good daddy (if a cheapskate), and he will respond to that.

 

[Fyrefly]

Good luck!

Push a 2 AM walk. More realistic for exam time, and way creepier.

 

[Longsx3]

We have actually talked about this over the yr and DD is only a HS freshman. The plan has always been we would not do it until DD was at least a Sophomore, maybe even a JR.. We want her to learn the ropes on campus first. We never thought we would make money off living in a condo it was more about living some place safe and of our (DH, DD, and I's ) choosing. Most likely would be a gift to DD upon graduation. Plus we would have some place to stay when we visit.

If your main reason for doing so are financial, I would not do it. Condos can be hard to sell first and for most. Plus to make money or break even you are assuming the market will make some gains, because out side of the mortgage you will have closing costs...possibly both at purchase and sale plus Realtor fees on the sale. Then there is Insurance, any repairs from roommates, etc.

I guess I would ask myself, what would we do if DD wanted to switch schools once we commit to a condo? What if DD(2) decides on a different school, or doesn't get into the same school? Finally are we will taking to take a loss if the market does not rebound or if anything else comes in to play?