Kiddie condo /College housing

[MrsPete]

Our oldest child is choosing a college now, and my husband is very interested in buying a kiddie condo for her college years -- I am less interested, but I'm investigating and trying to keep an open mind.

Here are the facts as I see them -- I'd appreciate input, especially from people with experience in this field:

A dorm room at the school my daugther's #1 choice school costs $1850-2000/semester. So IF she lived in a dorm for 8 semesters, we'd be looking at $16,000 spent on dorms. We do have a second daughter, so let's go ahead and say that dorms would cost $32,000 over their combined 8 years of college -- and that's if they don't increase in cost.

My husband's thoughts are financially sound: Buy a condo. She lives in it for four years. Even if it doesn't appreciate, even if we sell it for exactly what we paid, she's had housing "for free". In theory this sounds good, but I'm also thinking about furnishings and appliances, paying through the summer months even though school's not in session, taxes, housing association fees, maintenance, and repairs.

Also, in his thoughts: We'd get a 2-3 bedroom condo, and the 1-2 roommates would pay rent, whittling our mortgage down painlessly. Of course, I'm concerned that the roommates might move out, leaving us without expected payments.

In his fantasy perfect-world, our younger daughter will choose to attend the same college, and she'll move right into the same condo (our two girls'd overlap one year -- that is, one year we'll have a freshman and a senior, so that year we might not have a roommate helping with the mortgage). I don't want my younest to feel that she's going to be "forced into" choosing the same college her sister chooses, but I don't think we could carry two kiddie condos at different schools -- especially if the first one turned out to be difficult to sell, a scenerio which doesn't sound likely . . . but who knows?

Our oldest is very likely to get some scholarship money -- I'm hoping she's going to get substantially more than just tuition money. Is it okay for her to pay rent to us using scholarship money? I mean, she could use it to pay someone else, of course, but is it any type of conflict of interests if she's paying her parents?

I'm not considering food in this equation. I've looked at the cost of meal plans, and the low-end food plans (required in the dorms) are $70/week. Our oldest IS NOT a cook, so if she's cooking in her own place, it'll be convenience foods. She'd probably spend about the same amount either on groceries or on a meal plan. Our youngest is more of a cook, so IF she ended up living in the same place, she'd probably do a little better with food costs, but I don't think that's something we can include in our considerations.

Problems I foresee: I think it's unlikely, but IF our daughter wanted to switch schools, owning a house would be a hold-back. She doesn't really have "fix-it skills", and that's not really something I care to push upon her during college years.

And then, there's our time/effort -- he's thinking this kiddie condo project would mean a couple weekends driving up to the college area to pick a condo, then selling it after our daughters both graduate. I foresee repairs, screening roommates for financial credibility -- things that may eat up more of our time than we care to spend.

No-problem items: Our own house is mortgage-free and we can put together a downpayment, but this would mean taking out a loan -- something I'd planned never to do again for the rest of my life, and something that I don't really want to do.

One last fact: Our daughter is a high school JUNIOR, so time is not an important factor right this minute. We're working on making up our minds about what we want to do, she's in the process of making a final decision on what school she'll decide upon. IF we ended up going the kiddie condo route, we have plenty of time to search and put in an offer.

Okay, this is REALLY the last fact: The school she loves is in a resort town, so condos are likely to be high-priced. In theory, this shouldn't matter because it would be a relatively short-term investment.


Those are the facts as I see them, all laid out boldly. I'd appreciate thoughts and stories from those who'd done this (or considered it and turned away).

Thanks!

 

[drcmk]

Our oldest child is choosing a college now, and my husband is very interested in buying a kiddie condo for her college years -- I am less interested, but I'm investigating and trying to keep an open mind.

I don't know anyone who has done this, but it is an intriguing idea. It's really only a deal *if* your child goes to the same school and lives in the condo for the whole four years. So if she drops out of school, takes some time off or transfers, you are stuck. Also, how will you deal with the situation if your second child doesn't go to the same school? Will you buy another condo for her. Some schools don't allow freshman to live off-campus unless they live with their families, so look into that.

 

[tar heel]

Will the college let freshmen live off campus? If she goes into a condo as a freshman, it's likely that she's going to feel a bit like a transfer b/c the vast majority of freshmen are going to be on campus. I personally think it's better for freshmen to live on-campus the first year because there's bonding, some support, and less to deal with (repairs, transportation, etc.).

I'm not sure your dorm figures are particularly valid b/c unless she's going somewhere like Davidson where everyone stays on campus four years, she'll probably want to move off campus any way.

If you can afford it, there's a lot of merit in doing this, but I say wait until sophomore year.

I ended up as the "old lady" unintentionally in a kiddie condo when I was 24. I was working in Chapel Hill and rented an apartment in a huge house near the botanical garden. The house was for sale. A student's dad bought it and eight varsity athletes moved in. Didn't work out so well for me -- they were up all night and repeatedly were parked behind me in the morning.

 

[MrsPete]

I don't know anyone who has done this, but it is an intriguing idea. It's really only a deal *if* your child goes to the same school and lives in the condo for the whole four years. So if she drops out of school, takes some time off or transfers, you are stuck. Also, how will you deal with the situation if your second child doesn't go to the same school? Will you buy another condo for her. Some schools don't allow freshman to live off-campus unless they live with their families, so look into that.

You're thinking along my lines! He's just thinking $32,000 reimbursed to us after graduation.

Our oldest is very, very academic, and I don't imagine her taking any time off. Our youngest . . . maybe. But you're right: I will only pay housing for a kid who's in college!

I'm completely uncertain about the second child thing. She's quite a fan of her big sister, and she loves the area of the state where her sister's #1 college choice is located -- I wouldn't be surprised to see her make the same choice, BUT I'm less certain about what the youngest will study, so that same school might not even be an option for her. (I'm not CERTAIN about where the oldest will go -- but this choice'll exist at any other school she may choose.)

My husband's cousin did this for her two daughters (ironically, at the same school!), though their youngest is still in college, so they have not yet reaped the benefits of selling their kiddie condo. The cousin tells us that although freshmen are expected to live on campus, they can be excused from that requirement if the family owns a residence in the area. Since her girls did it personally, I have no qualms about his plan from that particular standpoint. She says it's just a matter of writing a letter.

 

[patsal]

Wow $2000 for a semester that is so inexpensive compared to my DS who is paying $4500 per semester and $1900 for food per semester. He is at a public NYS college!

FWIW I would personally not let a freshman live off campus, way too much integral socialization going on on campus.

 

[MrsPete]

Will the college let freshmen live off campus? If she goes into a condo as a freshman, it's likely that she's going to feel a bit like a transfer b/c the vast majority of freshmen are going to be on campus. I personally think it's better for freshmen to live on-campus the first year because there's bonding, some support, and less to deal with (repairs, transportation, etc.).

I'm not sure your dorm figures are particularly valid b/c unless she's going somewhere like Davidson where everyone stays on campus four years, she'll probably want to move off campus any way.

If you can afford it, there's a lot of merit in doing this, but I say wait until sophomore year.

I ended up as the "old lady" unintentionally in a kiddie condo when I was 24. I was working in Chapel Hill and rented an apartment in a huge house near the botanical garden. The house was for sale. A student's dad bought it and eight varsity athletes moved in. Didn't work out so well for me -- they were up all night and repeatedly were parked behind me in the morning.

I know what you're saying: I lived in a dorm for three years, and I loved it. My husband never did. Because he visited friends in dorms on weekends, he THINKS they're non-stop parties all week long. He doesn't grasp that my dorm was a quiet, serious place Sunday night - Friday afternoon, and it turned into a party every weekend.

Anyway, he has the idea that a condo is quieter, more condusive to studying. I'm with you: It's also a great way to meet people, to immerse yourself in the school, and to really start your college experience whole-heartedly.

Waiting 'til sophomore year doesn't sound like a bad plan, though his theory is that if we're doing it to save money, we should do it sooner rather than later. He's thinking that paying the $4000 for a dorm freshman year would be $4000 thrown away unnecessarily.

You're also right that it isn't a question of 4 years in a dorm vs. 4 years in an apartment -- if she starts in the dorms, she is only locked in for a semester. At the end of that semester, her contract's up and she's free to look into other arrangements. But IF we buy a condo, she's locked in 'til graduation.

 

[MrsPete]

Wow $2000 for a semester that is so inexpensive compared to my DS who is paying $4500 per semester and $1900 for food per semester. He is at a public NYS college!

That's why y'all's students come down here to the South by the truckload!

Seriously, the price isn't too bad when you look at it compared to other areas of the country. His argument is that it could be ZERO (after the condo is sold and the money is recouped).

Like I said, I'm trying to keep an open mind and investigate the possibilities, but y'all have really reinforced all the things I was already thinking.

 

[ajh88]

I had a friend in college who's parents did this and I thought it was a *fantastic* idea! The only difference is that they bought a huge house and there ended up being like 6 guys living there - 2 of them were the sons of the owners. I had always said I thought it would be a great idea, simply because rental properties in college towns always seem to sell. I've said that if my DD ends up at a college where she doesn't want to live at home, that I will do the same thing.

If push came to shove at the end of the time, you could always continue to be landlords to college students until the condo sells (assuming you can't sell it immediately). You *may* have roommate issues, but that could happen whether she is living in the dorms, in a condo owned by you, or in a different rental place. You could always let the students pay you once a semester (when they get their financial aid), so you don't worry about not getting rent towards the end (when $$ might be running short). As for summers, if it is a resort town, you could do vacation rentals or target short term rentals for students in summer school to offset some expenses. That also assumes your daughter comes home for the entire summer and doesn't decide to stay there (for whatever reason).

Finally, what does your DD think? Is she up for being the landlord de facto for roommates? What is her preference for dorms vs. condo?

FWIW, I never lived in a dorm and I certainly don't feel like I missed out on anything - of course, I only have one perspective. My university required students to either live at home or in the dorms their freshman year - I lived at home.

 

[daydream32]

Not sure how common this is, but I actually got a scholarship from my university that required me to live on campus.

 

[MrsPete]

I had a friend in college who's parents did this and I thought it was a *fantastic* idea! The only difference is that they bought a huge house and there ended up being like 6 guys living there - 2 of them were the sons of the owners. I had always said I thought it would be a great idea, simply because rental properties in college towns always seem to sell. I've said that if my DD ends up at a college where she doesn't want to live at home, that I will do the same thing.

If push came to shove at the end of the time, you could always continue to be landlords to college students until the condo sells (assuming you can't sell it immediately). You *may* have roommate issues, but that could happen whether she is living in the dorms, in a condo owned by you, or in a different rental place. You could always let the students pay you once a semester (when they get their financial aid), so you don't worry about not getting rent towards the end (when $$ might be running short). As for summers, if it is a resort town, you could do vacation rentals or target short term rentals for students in summer school to offset some expenses. That also assumes your daughter comes home for the entire summer and doesn't decide to stay there (for whatever reason).

Finally, what does your DD think? Is she up for being the landlord de facto for roommates? What is her preference for dorms vs. condo?

FWIW, I never lived in a dorm and I certainly don't feel like I missed out on anything - of course, I only have one perspective. My university required students to either live at home or in the dorms their freshman year - I lived at home.

I don't think I'd want to go with a whole house -- that'd include yard work, which would be more than I'd want her to have to learn to deal with during college.

She waivers in her opinion. She's attending Open Houses, trying to picture herself in this or that college -- she doesn't know what she wants. She's a super-social creature, and I think she'd LOVE the dorms.

 

[MrsPete]

Not sure how common this is, but I actually got a scholarship from my university that required me to live on campus.

I think it's pretty rare.

Though, come to think of it, I had a job that required me to live on campus: I was an RA. I didn't get paid money, but I got a private room for free and 1/2 my tuition paid. Since it wasn't money, I wasn't taxed on it.

It was really a great thing for me at that point in my life!

 

[labdogs42]

If you have the $$, I say, why not? It could be a great investment. I'm sure there are real estate agencies in the area that specialize in this kind of thing. They probably also have services to deal with rentals, roommates, etc.

 

[Katie's Butterflies]

I've never personally heard of anyone doing this, but it sounds interesting. The only worry I would have is,

what happens if you can't sell the property or sell it at the same price you purchased it for. In your post, you sound like the plan depends on you selling it back for the same price. Real estate isn't always that predictable or safe. Just something to think about.

Our oldest is very likely to get some scholarship money -- I'm hoping she's going to get substantially more than just tuition money. Is it okay for her to pay rent to us using scholarship money? I mean, she could use it to pay someone else, of course, but is it any type of conflict of interests if she's paying her parents?

I just want to point out that often with scholarships, the student cannot receive more than his or her tuition/fees. So, if her school tuition and fees are 5,000/semester, she can only get 10,000 per year. Someone mentioned running into this problem recently on the community board.

 

[ardig123]

My college also required anybody who received scholarship money to live on campus or in college owned apartments...for all four years. The only way you could live off campus and have a scholarship was if you lived with your parents. Although if you owned the property I wonder if that would count for living with your parents?

 

[Traveliz]

I have a friend that did it/actually is doing it now. Her son is graduating this year so it will be the sell year. The younger son is at a different school.

It has worked out for them. There have been the occasional inconveniences as in waiting for all the ducks to get in a row for who is moving in and out each semester but overall I think they have been happy with the plan.

They are not in a resort town but the condo is near the college so hopefully it will sell ok for them next summer.

Liz

 

[kdfogliano]

I agree with the PP about living off campus and missing things.
Freshman year is when everyone starts out together and not living in a dorm can make you miss out on the fun. Granted dorms are not very nice! but that is where you meet friends in the beginning.

 

[monarchsfan16]

I'll echo the fact that dorm life is critical for socialization as freshmen. To be honest, my best friends throughout college were the ones that lived in my dorm freshmen year.

One thing that hasn't been mentioned is to look into the town ordinances in the town the college is in. The town my school is in actually has ordinances stating the amount of unrelated people in one house or condo. This is specifically to prevent the kiddie condo/house thing. THat being said, I know people whose parents bought a house in town, and filled it. The family I knew had 3 kids, all of whom overlapped, and have had the house filled nonstop since about 2003. They charge the roommates rent that's typical for that area, and the rent ends up basically paying the mortgage, allowing free housing for the kids.

 

[MSSANDRA]

We are making the "big choice" with DS right now and a few thought other than money: We are finding a lot of scholoships do require at least unmarried freshman to live in dorms. A few schools required all freshmen not living in the house with their parents to live on campus.

Dorm life is geared to 18 year olds. More security and support than living in a condo. Medical care, security guards on campus. I think it would take a really mature 18 year old to be in charge of her own condo.

 

[twinsgg]

I agree with others who mentioned the importance of making friends during their freshman year. A lot of friendships are made right in the dorms.

Has your daughter ever been away from home before and lived on her own? It's a big step. Are you sure she's ready? Even with roommates, (who might be older) it could be lonely.

How far would the condo be from campus? Would she be walking home from campus functions, library, gym, etc. alone at night? I remember leaving campus parties and always finding a friend from the same dorm to walk back with but off campus, not sure about that. Also, is she responsible enough that her condo wouldn't become the freshman underage drinking spot?

I think the idea is great but I'd be concerned about your daughter's safety.

Good luck!

 

[allison443]

I have one dd that already graduated college and another one in sophomore year. I wouldn't have wanted either one to live off campus in freshman year. Like others have said, there is a lot to be said to being on campus, meeting other freshmen in the dorms, impromptu get togethers and study sessions, etc.

My other concern would be safety. You mentioned it's a resort area. Would the condo be in a building populated by year-round residents or are many of the units vacant in the off season? Are a lot of the units rented out to transient vacationers?

If your dd takes a roommate, what if they don't get along? She is stuck in the condo with that roommate for the year. Even if you interview/screen a person, the person could turn out to be one of those kids that "goes wild" freshman year. In a dorm there's a possibility of switching rooms, finding other friends, etc.

On campus there is a support system of RAs, other students, etc. Off campus she wouldn't necessarily have that. A freshman who is living at home would have that, but not one living in a condo.

Plus how far is the condo to campus? Would she be walking back and forth? Would that impact her ability to stay on campus at night, for activities, or studying late in the library?

Her on campus housing would be $4000 a year. Surely there is a monthly maintenance fee, taxes, etc. for the condo. (you said the food costs would be about the same, so not counting that.)

How is the real estate market in that resort area? I'm not familiar with the resorts in your state, but in a few in other states I am familiar with, the market is not a sure thing these days. I wouldn't want to bet that in four short years I could sell a condo for the same or more. Are you willing to hang onto the condo beyond the four years, even if your younger dd doesn't go to that school? Of course, if you own the condo, she might feel pressure to go there even if she doesn't want to.

Finally, I am going to give another opinion and please don't take this the wrong way. If your dd earns such a great scholarship that it covers her tuition, and your costs for her college would be only $4000 a year (plus meal costs which you'd have either way), I don't think you should make her live in the condo just because it's cheaper. JMO but the cheapest option isn't always the best option.