If any of you parents have ever said, “Sure, I’d love to buy a property in Starkville sometime.” Well, now might be the perfect time.
When sending your student(s) off to Mississippi State, rent can be burdensome over the course of 4+ years. And if a sibling is along the way, you'll have to double that! But have you ever stopped to consider the financial benefits of buying over renting? The truth is, you can actually pay for your college student's “rent” AND get some help paying for in investment property by renting out other bedrooms. $500+ per bedroom per month is the average rental rate in Starkville. Therefore, if your child takes up one room and you rent the other rooms to their roommates, you’ve made your money back and then some. In addition, you can take into consideration the inflation and price per square foot over the course of said 4 years.
For example, look at one of Starkville's new properties with Starkville Properties: at Sundance Subdivision is a 3-bedroom, priced at $293,000 (they also boast 2 bedroom units as well.) Let’s say you get it for $290,000. A 30-year mortgage with 10% down at a rate of 3.9% will cost you about $1,600 per month in mortgage.
So, you charge $550 to each of the other two renters, and now you’ve paid with your mortgage, etc. by two-thirds! Then, you can turn around and sell it in 4 years, for a profit! Or better yet, hold onto the property and continue to rent it out. Boom - cash cow!
So now that I’ve sold you on buying versus renting, because after all, it's a no brainer...consider the competition of your “rental.” Students nowadays are accustomed to good locations and great amenities. It's definitely something to consider when looking for a property to purchase. The older small houses around downtown Starkville and the Cotton District while hot, may not offer amenities like bigger rental properties. There is the chance to get a good deal on these older homes and update a property like that - OR, purchase a move-in ready house or condo in another part of Starkville. Let's be honest - there are no bad areas here!
When a great investment property pops up, it's time to jump on it! The truth is, your student has 2 or 3 friends wanting an “in” on a place to live - so why not take advantage of that and make a little profit, as well. Happy house hunting! Hail State!