This beautiful remodeled two bedroom one bathroom home listed for just $22,000 is in a quiet senior park near Fairhaven and Bellingham, Washington in South End Mobile Estates. This neighborhood has an age restriction of 55 years and older making this a great retirement home. It has a  new roof and has been recently repainted. Inside are European Wide plank laminate floors, Mohawk premium carpet and ideal storage space, but also included is a 10 x 12 shed which provides extra storage space. The appliances are newer and all are included in the sale of this home. South End Mobile Estates also has a home owners clubhouse with TV’s, a pool table, and an exercise room.

This home is in a very convenient location close to walking trails, shopping areas, Lake Padden, Fairhaven and Bellingham, Washington.

If you would like to know more about this conveniently located retirement property go to: http://bit.ly/a50wav

I went to Western Washington University, here in Bellingham, so I will use it as an example, though the numbers would likely look quite similar in just about any college town. Rates per person at Western’s dorms run roughly $500 (3 kids in a room) to $800+ (single occupancy) per month, NOT including food expenses.  Rental rates anywhere near campus run about $400-600 a month per room, depending on the number of rooms.  Studios and 1-bedrooms are commonly $700-900/month, whereas you might find a decent  3-bedroom for $1400.   Let’s be conservative and say it’s about $600/month on average, per room. Over 4 years (48 months) that’s almost $30,000(!) that you will NEVER get back.  As Everett Dirksen famously said,“ A billion here, a billion there…pretty soon you’re talking about real money!”

Consider this:  Right now, you can buy a 1-bedroom, 600 square foot condo, built in 2006, less than a half-mile from Western Washington University, for $140k.  With 20% down at 6% interest, the monthly payment, which includes taxes, insurance, and HOA dues (W/S/G) comes to about $925, leaving only electricity and cable for expenses.  Sounds like kind of a lot, doesn’t it? Let’s take a closer look.

• Similar units in this building are currently renting for between $725 and $800.

• You can write off some (maybe  all) of your interest payments , giving you roughly 25% back at tax time, depending on your bracket, making the effective monthly expense closer to $700. Make sure to talk to your accountant about this and other creative write-offs you might find…

• As an owner, your monthly expenses remain fixed over time.  According to Cory Walken, a colleague who studies rent growth in the area, rents near Western have increased at an average of about 6% per year, over the past 5 years.  Assuming that trend were to continue, the monthly rent on that same unit would go up  to almost $900-$1000 by the 4th year of your student’s education. Over 4 years, that would cost you between $38000-$42000 in rent! Gone, flushed….never to be seen again…

• Don’t forget about appreciation! Even in these tough times, most analysts are expecting the market to have corrected itself in the next couple of years, meaning there is a good chance the value of your investment will begin to increase during the 4-5 years that your student will live there.  That’s right, you might even MAKE money on this thing! Worst case, you can always hang onto it to make sure the kid doesn’t try to move back in with you after college…

This is just one example, of course.  There  are several other condo opportunities I can point you toward.  There are also houses and duplexes, etc… The numbers can look even better if you buy something with more rooms. Then, you can collect $500-$700/month of OTHER PEOPLE’S money! That ‘s the best kind of money, after all…

If you’d like to look more seriously at this type of investment, keep in mind that there are all kinds of different programs available, requiring anywhere from 3.5% to 20% down.  You can buy as an investment property, as a second home for yourself, or possibly as a first-home for the kid, which means eligibility for the $8000 first-time buyer tax credit. Each of these options has it’s own credit and income requirements, as well as unique tax implications.  Again, I would suggest consulting your accountant, as well as a mortgage professional, to make sure you understand clearly these particular details. You can talk to me if you want to know where to find these properties.

I can be reached on my cell at 206.883.6668, or by email at rob.leroy@exprealty.com

This post simultaneously published by Rob LeRoy at theRealEstateNovelist.com

Rob LeRoy is a Seattle real estate agent and social media marketing coach with eXp Realty.

The Happy Valley Neighborhood is located at the foot of Sehome, Samish and South Hills. Historically, this area served as a residential neighborhood with many of the early residents working in the Fairhaven Cedar Mill and Salmon Cannery. A street car along Harris Avenue connected Happy Valley to the Historic Fairhaven waterfront. Many early residents of Happy Valley had single family homes on smaller lots near the Fairhaven area and larger “garden tracts” in the rest of the valley.

Since the 1960′s, a large number of apartments have been constructed in the northern section of Happy Valley. The majority of apartments are located close to the WWU campus and directed towards WWU student housing. WWU reported 13,076 full- and part-time students in the fall of 2005. To accommodate the growing WWU student and community population, construction of new apartments continues today. The majority of apartments are clustered around 32nd Street, 21st Street and Bill McDonald Parkway.