A while back I posted a story about the condominium as great investment opportunity alternative for investors who are concern about the fluctuations in the housing market. Some newbies got burned because they're trying to catch up with the trend of flipping properties trying to make big bucks in no time!
Farley didn't know she'd bought into a new baby boomer fad: acquiring property near big college campuses. Some people buy because they'd rather pay a mortgage than pour money into a dorm room for a son or daughter. Others are avid football fans who prefer sleeping and celebrating at their own place after home games.
If we look at the investment opportunities around big campuses like UVA, clearly growing of student population is one of the factors why Eagles Landing would be a great investment, especially for "cautious investors." A college-town condos feeds student housing shortage! We know that student population will keep growing by leaps and bounds. There's no stopping on this trend.
Michael Zaransky, author of "Profit by Investing in Student Housing: Cash in on the Campus Housing Shortage," quoted in his book about "how Virginia is one of the high growth states in student population from 2000-2010. Enrollment is projected to grow at 16% in VA."
Here is a sample investment summary for Eagles Landing. [Copy obtained from the company]
Typical Four Bedrooms, Four Bathroom Furnished Home
Purchase price $259,900
10% Down Payment $25,900
Loan Amount $233,910*
Interest only based on 6.09% 5/6 Libor ARM $1,169.55
Condominium Fee $399
Management Fee $66
Total Monthly Payment $1,794.55
Special Seller Incentives: 5 points toward financing fees (5% of loan amount)
Monthly Investment Summary
Total Monthly Payments $1,794.55
Typical Monthly Lease $1,656
Net Monthly Cash Flow - $138.55
Not bad for a negative cash flow of less than $150 a month. These days it's very challenging to find investment properties that will generate positive cash flow -- because of the high purchase price. Unless you lock-in 20% of your money for DP, it's normal to see this type of cash flow for this area and DC metro. Think of it like investing into a growth/ appreciation mutual fund. And, with real estate investment, you only lock-in a certain percentage of your own money -- the rest of the balance is financed. This is the only investment where you can leverage your funds.
In addition to the 5% credit from seller, you'll get also a "guarantee lease" program for a certain period of time. In short, investing into college town condo like this one, is a short cut to building your real estate investment portfolio without the headache of dealing with tenants.
By the way, Eagles Landing is the only gated community in C'ville. Some of the features include, free shuttle to the Grounds, 24-hr clubhouse, social room with plasma tv, 24-hr computer lab with free paper, color printing, and internet access. All rooms are leased individually.
Only one condo of 3br/3ba still available for under-$200k. Not more than than 30 units of 4br/4ba condos still on the market. They're priced at $259,990.
* Other typical buyer associated closing costs will apply
Disclaimer: The shown rate and point structure is subject to change at any time, upward or downward without notice. Not all applicants will qualify for these terms. Mortgage lending decision are based on credit, assets, employment and borrower profile... yadda yadda yadda...