🏠 Buying Property for Your College Student: Real Estate Investment or Financial Mistake?📚💸

When your child gets accepted into college, there are a million things to think about—dorm life, tuition, meal plans, and... buying them a house? Believe it or not, more and more families are exploring the idea of purchasing property for their college-aged children to live in during their university years.

As a real estate professional here in Southern California (and a mom myself), I often get asked: “Is buying a home for my college kid a good investment—or is it just an expensive experiment?” The answer? It depends. But with the right approach, it can absolutely be a smart, strategic move. Let’s break it down.

💡 Why Parents Are Doing This

Southern California rental prices can be sky-high, especially in areas near major universities like UC Irvine, Cal State Fullerton, or Chapman. Instead of pouring thousands into rent for four years, some parents are choosing to invest in a condo, townhome, or small single-family home.

This strategy can:

●     Save money over time

●     Build equity

●     Offer more stability and comfort for your child

●     Open up opportunities for rental income (more on that below!)

🏠 What to Look for in a Property

When shopping for a property for your college student, location is key—but it’s more than just being close to campus. You want a home in a safe, walkable neighborhood that holds long-term value. Areas with low crime rates, nearby grocery stores, coffee shops, and public transit will always attract renters, which becomes important once your child graduates.

Other features to consider:

●     Low-maintenance properties (think condos or townhomes)

●     HOAs that allow rentals

●     Two to three bedrooms for roommate potential (hello, rental income!)

●     Proximity to hospitals and major employers (valuable for resale or long-term investment)

📊 Let’s Talk Numbers

If you’re spending $1,500–$2,500/month in rent over four years, that’s roughly $72,000–$120,000 down the drain. Buying a $400,000 property with a 10–20% down payment and manageable mortgage could cost a similar amount—but you’re building equity.

You might even come out ahead if your student shares with a roommate and you collect rent. Some families even continue renting the property after graduation and turn it into a long-term investment.

⚠️ What Could Go Wrong?

Of course, it’s not all upside. Here are some real risks to consider:

●     Market fluctuations (home values aren’t guaranteed to rise)

●     Property management (especially if you live out of town)

●     Maintenance costs and repairs

●     HOA restrictions on rentals

●     The possibility your child might transfer or decide to live elsewhere

Also, if you're considering co-signing a mortgage or buying under your child’s name, talk to a financial advisor first. And be cautious with gifting property—it may have long-term tax implications.

📝 My Take as a Realtor & Probate Specialist

I've helped several families navigate this exact scenario, and the biggest difference between a money pit and a smart move is strategy. The best approach is to treat this like a business decision—don’t just buy with your heart.

If you're considering buying near a college or university, I can help you identify high-growth neighborhoods and avoid properties with hidden red flags. I also offer guidance on long-term planning—especially important if you want the property to stay in your family’s estate.

If the unexpected happens and you end up managing the property later in life or passing it down, understanding probate and estate planning is crucial. (That’s where my experience as a probate specialist comes in!)

🎓 Final Thoughts

Buying a property for your college student can be an incredibly smart move—but only if you do it with eyes wide open. With the right advice and a thoughtful plan, it can set your child up for stability while building generational wealth.

Have questions? Thinking about exploring properties near a SoCal university? I’d love to help you weigh your options and run the numbers.

Let’s turn your child’s college years into an investment opportunity. 📩 Contact me at TessMarquez.com | (626) 712-5156 or call/text anytime!

By Tess Marquez, Realtor & Probate Specialist | TessMarquez.com