I'm looking into buying my first bit of real estate to diversify (current NW is about $100k, 15% cash since I'm moving back to the US soon, 55% VTSAX in taxable and Roth IRA, rest in a couple individual stocks--I know, I know).
My hometown is Raleigh, NC, and I've done a bunch of apartment hunting there and know the neighborhoods and rents fairly well. NC State University is there and expanding, and it's also close to Research Triangle Park with lots of tech companies. In the downtown area, near the university, there has been more apartment construction lately but it's been high-end yuppie apartments out of most students' ranges. Raleigh is somewhat of a hipster capitol.
There are a few 4BR apartments for sale in a student complex near a whole bunch of other student apartment complexes. The apartments are listed at about $108k and say they're renting for $1500 (1.4% rule, don't know how to calculate cap rate without knowing HOA fees and expenses for student apartments). I'm not even in the country, so I'm obviously not going to buy now, but would it make sense to keep an eye out for this kind of property in a few months, when I'm in the area? I could self-manage it, and renting by the bedroom to students seems to mean rent can be higher than other 2 or 3BR properties that would go to couples or families. I would put down 20% and pay off the mortgage somewhat aggressively, with the goal of having no mortgage in about 10 years, when I plan to FIRE. Aside from the whole renting to college students thing (I would aim for international grad students!), there doesn't seem to be much downside... any thoughts? Thanks!
