Pitfalls of Buying Student Housing
Bonita Springs real estate and Estero Real estate has recently become more affordable. If you didn’t know it, there is a college in South Fort Myers FGCU – Florida Gulf Coast University.
A couple of times per year parents of students that are enrolled or future students start looking for real estate to house their student. A few years ago they were looking for rentals. They’re now looking for real estate to buy, again.
There are a few pitfalls that parents who buy student housing for a real estate investment need to be away of two big factors.
First, buying real estate to house your own child and perhaps add a room mate or two has a glitch you’ll need to know about before you purchase. If you purchase a three bedroom Bonita Springs home or condo with the hope of housing your child and two additional room mates, know that a good many deed restricted communities have restrictions that could affect your rental plans.
Some associations have limits to the amount of people that can live in the unit who aren’t related. They’re not so hot on folks running a guest house. Plus, just because there are three bedrooms doesn’t mean there is enough room allotted the unit for three vehicles. Yes, tow trucks get called and there will be a scene when people don’t blend in, park in the street or park in driveways of others.
Second, there are some condominium complexes in both Estero and Bonita Springs that have a great deal of investors as owners. The condominiums were build at about the time that the housing boom ended. Many investors were unable to sell their condos and have discounted them as short sales and there may be foreclosures.
Snapping up a bargain may be difficult if you’ll be getting a mortgage. Some of the condo complexes are over the mortgage underwriting guidelines for owners who are defaulting on their quarterly assessments. Also, due to heavy investor involvement (rental units) and foreclosures the complexes also may have underwriting issues with having less than 65% of full time or second home resident/owners.
There are many opportunities to purchase student housing as a real estate investment near FGCU. The key to purchasing the best real estate investment is to review homeowner association documents thoroughly before purchasing and to make sure you won’t get tripped up in underwriting in an investor heavy condominium complex.