During my son Lance’s first two years at the University of Utah, we spent an average of $1,000 per month on housing and around $5,200 for 9 months of dining. This amounts to about $1,575 per month for housing and dining. And let me tell you, the complaints about the meals were many.
My husband and I figured that we could invest in a single family home and rent rooms to my son’s college roommates for $700 per month per person. It would be win-win. The boys would have a home instead of a small dorm room. They could cook their own food and entertain their friends. They wouldn’t have to move out every summer and back in every fall. We presented the idea to Lance and he was game.
The other reason this idea made perfect sense is that the Salt Lake City real estate market is hot! Median sale price has increased by double digits during the past few years, from $363,000 in 2017 to $445,000 in 2019. Furthermore, Salt Lake City is a technology hub and since my son is getting a degree in Entertainment Arts & Engineering, there is a good possibility he will land a local job.
Last Christmas, Lance and I looked at homes for sale near the University of Utah. We both liked one better than all the others. It is a Victorian, built in 1907. There are 5 bedrooms, 2 bathrooms, a yard with a deck and herb garden, and a 2-car garage. All the bedrooms are above grade. We started negotiations and it turned out the sellers wanted to lease it back for a few months. I love win-win situations.
Lance and one roommate moved into the house last month and the other three will be moving in shortly. They are all so happy to be living in a nice single family home within walking distance to campus. The rent the roommates are paying will cover our mortgage and most expenses.
If my son lands a job outside of Salt Lake City, we can easily rent this home to other students or U of U faculty. Or we can sell it. If my son stays in Salt Lake City, he can have fewer roommates and start paying us rent.
If you have college-aged kids, please get in touch with me. I can help you locally or introduce you to one of my fantastic Sotheby’s International Realty colleagues around the country.