March 28th, 2007 10:26 PM by Lisa Carey
An abundance of student housing exists in Tallahassee with close proximity to Florida State University, Tallahassee Community College, and FAMU. Possibilities include condos, townhomes, and detached single family homes, all within walking distance, a short drive, or a quick bus ride to your higher education destination.
Many parents prefer to purchase a property for their college-bound children in lieu of dorms and rentals. It can be an especially wise decision if a family has several student children attending school in the same town. Benefits are many, especially if financed to the buyer's advantage. The obvious are the tax write offs, the opportunity for a college-aged child to earn an "income" as the property manager, the possibility of a lucrative return when the property is sold, and quite often a positive cash flow from roommates, or at least the opportunity for roommate rental to reduce or cover the mortgage.
Financing a "kiddie condo" or student housing can work to both the parent's and student's advantage. In my opinion, using an FHA loan is by far your best choise. FHA loans aren't what they used to be - they're better than ever! Best of all, a parent and child can be on the loan together and reap the benefits of homestead in this manner. In Tallahassee, that equates to a $25,000 reduction in assessed taxable value! Even a child with no credit (so long as there isn't bad credit), can be on the loan and thus establish the best type of credit for future reference.
Often a property can be purchased with only a small deposit. 100% financing may is available. And, sellers can contribute up to 6% in closing cost concessions and no longer are there excessive FHA seller costs. In fact, I often see FHA seller costs of less than $100 now, making sellers much more accepting of this financing method. The once dreaded FHA inspection is also no more - a conventional inspection will suffice with only the roof as a major concern. Relaxed WDO (wood rot & termite) requirements also take the pressure off.
If you are interested in finding a safe and convenient student housing property for yourself or your student child in Tallahassee, please give me a call at (850) 212-3083 or e-mail me at Lisa@CareyCottage.com. I would be pleased to help you with your search for just the right property and connect you with local lenders who can help you finance the "kiddie condo" to your advantage!