Can't find a rental? Buy one instead.

Good post. My son and his girlfriend are looking for a place to rent while she attends graduate school and I too looked at properties to purchase and rent to them. The upshot is that the cost would be less than rent, but in the end I decided against it. The reason I did (other than not having a lot of disposable income at the moment) is that I don't want to have him end up relying on me, but to remain independent. There is too much temptation to let a payment slide when a parent is involved, and I have witnessed first-hand, parents make a purchase only to have children abuse it, no matter how old.

Peter- that has been my plan all along with my daughter!  I remember when I was in college and some other kids parents did that and my friends lived for free in the end!  You can't beat that!!!

Peter - It's always a good idea to take your own advice!

As the cost of renting increases, a lot of parents and older students are taking a closer look at this option.  It makes a lot of sense and cents.

We did the same thing and 10 years later we still have it and the daughter bought it.  We estimate we saved about $50K in lost rent money and she got a great start.  We are now looking to form a fractional LLC in San Diego and other parts that makes more sense than renting or a timeshare.

I guess that falls under the category of can't see the forest because of the trees?

I understand lots of people do this in college towns.  I think owning a rental in a college town, even if your kids are no longer there, is a good investment.

I bought a house for my daughter several years ago, and have it as a rental now as she graduated to a little nicer place.

Yep, another duh moment which you have corrected! Atlanta is still a great city & I'm sure you'll find something great. Don't forget to look for a good agent to help you on AR!

Ha! Love your story. That's exactly how 3 of my 5 children ended up as homeowners.

I agree.  In many places, including the Fort Hood area, it is still cheaper to buy then to rent.  

Peter, we do need to practice what we preach.  I wish I would have done that when my daughter was in school!

Buy over rent--A+... Enjoyed this post today (wednesday) and look forward to more in the future.  Liz Harris in Chandler, AZ

Good point.  If the market is saturated rents are probably strong.  Why not join the party.

I can relate when my second son went off to college, I should have bought a condo, rented out the beds and after graduation continued to rent to students. Big mistake yet wiser now. Get a 5/1 ARM to start and get as close to school as possible. 

Peter, to take the other side, I as a property manager say she should rent especially since it is only two years and with two roomates she will only pay one-third the rent. If you do buy and put yourself in the landlord position with your daughter's friends being tenant, you are setting yourself up for problems.  College roomate squabbles, parties (yes even your daughter), and more.  Don't do it!

Peter - I did exactly that just a few months ago. My daughter was looking to rent a home, so I went out and bought one for her to rent, along with 2 roommates.

I agree. Have fun finding a property for your daughter!

I have made more money with my rentals than I have made in real estate sales.