IRVINE,
CA -- RealtyTrac has ranked the top 10 college towns for buying rental
properties, and the top 10 college towns for flipping in 2014.
For these rankings, RealtyTrac looked at
public four-year universities with a total 2012 enrollment of 20,000 or more
based on data from the National Center for Education Statistics and located in
counties with an unemployment rate below the national average of 6.2 percent in
June 2014.
Top
10 for buying rentals
The
top 10 college towns for buying rental properties were ranked based on annual
gross rental yield, which is the annualized rental income — using average fair
market rents for the town from the U.S. Department of Housing and Urban
Development —divided by the average of the median sales prices in the city
during the first eight months of 2014.
With
an average rental yield of nearly 14 percent, the city of Akron Ohio, home of
the University of Akron, tops the list of top college towns for buying rental
properties. Following closely is Trenton, N.J., home of Thomas Edison State
College, with an average gross rental yield of 13.20 percent, Gainesville,
Fla., home to the University of Florida, with an average gross rental yield of
11.34 percent.
Top
10 for flipping
The
top 10 college towns for flipping were ranked based on the average gross return
on investment (ROI) percentage for single family homes flipped in the town
during the first eight months of 2014. Not all college towns had sufficient
sales, rental or flipping data to rank.
Topping
the list of the best college towns for flipping is Minneapolis, Minn., home of
the University of Minnesota, with an ROI for flipping of 65.59 percent. Close
behind is Seattle, Wash., home of the University of Washington, with an ROI on
flipping of 61.88 percent and Lincoln, Neb., home of the University of
Nebraska, with an ROI on flipping of 55.01 percent.
 |
| Greg Smith |
"Boulder
shows strong rental rates with rents of $800 to $1,000 per bedroom close to
campus and a vacancy rate of 1 percent," said Greg Smith, broker/owner of
RE/MAX Alliance in Boulder, Colo. "Boulder investment properties are
selling at an all-time high with many properties selling for cap rates of less
than five percent."
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