There’s a term affectionately used by real estate agents that you may, or may not, be familiar with: “Kiddie Condo”
A “kiddie condo” is an investment property parents buy for their children while they’re attending college. Many parents will invest in a condo in Boston as an alternative to paying the ever-rising costs of college room and board or short term rental prices. Colleges and Universities in Boston have limited capacity to house students in dorms which means the cost of nearby rentals has a tendency to skyrocket. Boston was recently reported as the 3rd most expensive city for renters in the country, so buying a condo instead of renting an apartment can make a lot of financial (short-run and long term) sense for parents.
Traditionally, these investment condos are sold once the student graduates but they can also be an incredible opportunity for future income potential. Especially with the right property manager, these units can be turn-key and cash flowing for years to come. Exploring the option of investing in a kiddie condo is a great way to kickstart your real estate portfolio.
Typically, most kiddie condos are purchased in an area that has a dense student population; think Fenway, Kenmore Square, Brighton, and Mission Hill. However, there’s also a trend towards higher-end Boston neighborhoods including Back Bay, the South End, and Beacon Hill. The bonus of buying in this area is that the rental potential for after graduation is higher, plus it offers a central location for easy access to major employers and colleges/universities in the city.
Interested in learning more about kiddie condos? Contact me for more details or take a look at some of the investment properties available in key kiddie condo neighborhoods in Boston.