My wife and I recently joined LIfestyles Unlimited. Our plan is to get our feet wet as multi-family passive investors. We'd like to connect with any lead or potential lead investors who are Aggies and who might be seeking investors for any projects in College Station. (We have 8-to-5 jobs that make it difficult to attend any of the networking events in Houston.)

Separately, we have had some preliminary discussions with a classmate who's developing a new complex on Harvey Road east of the East Bypass. While new construction isn't part of the LU model, nothing says we can't look outside that model for other investment ideas. But, although the preliminary numbers look good, we have some concerns about how saturated the market is becoming. Does anyone have any thoughts or links they'd care to share regarding the outlook for new apartments in B-CS?

Thanks.

Brand new apartments seem to still do well. They are the new shiny object. With the glut that has developed, anything over a few years old seems to be struggling some. It appears to me, the builder and 1st owners probably do pretty well but I would be hesitant to own anything geared towards students that's not new or almost new. It would probably be worth your time to look at the total number of new beds already planned for fall 17 and 18 compared to the expected increase in enrollment. With the University jumping in on the building craze, I don't think those two numbers are going to jive.

I was thinking of going the duplex route but haven't done research yet. From what you indicate, I may be late to the game due to the amount of building the university is doing near campus?

I think the glut is mostly in the apartment arena for College Station. You can still find a Duplex close to campus that will easily rent. The problem is finding that Duplex for a price that makes your numbers work for you.

thaed137 said:

---

I think the glut is mostly in the apartment arena for College Station. You can still find a Duplex close to campus that will easily rent. The problem is finding that Duplex for a price that makes your numbers work for you.

---

Agree. My 2 bed duplexes are the easiest properties to lease. The demand for a 1 or 2 bed unit that is NOT an apartment is extremely high. Trickle down effect of high land prices and none of these being built.

I don't own any 3 bed duplexes but they seem to struggle a little. Assume its from all the competition with 3 bed houses.

Numbers as a whole have gotten very tight. Paying cash or a 30 year loan is about the only way to make it work. The days of netting a nice profit on a 15 year loan seem to be over.

3 beds struggle because of the rules around # people that can live in a 3 bed unit. Max of 4 people I believe, which makes the 3 bed unit less profitable per room.