Out-of-state parents ask us this constantly. Here is the honest rent-vs-buy math for West Lafayette, including the costs most people forget.
Sometimes it pencils, sometimes it does not. Buying near campus tends to win when your student will be there four-plus years, you can rent spare bedrooms to roommates, and you buy in a walkable location that will resell easily. It tends to lose when you are there under two years, you buy something hard to rent, or you forget the carrying costs. HOA, property tax at the non-homestead rate, maintenance, and vacancy over the summer.
Let's use a realistic West Lafayette scenario. Numbers vary by property and rates change, so treat this as a framework, we will run your exact deal with you.
| Line item | Estimate |
|---|---|
| Purchase price | $250,000 |
| Down payment (20% on a second home / investment) | $50,000 |
| Loan amount | $200,000 |
| Estimated principal & interest | ≈ $1,265/mo |
| Property tax (non-homestead, taxed higher than a primary residence) | ≈ $400/mo |
| HOA / condo fees | ≈ $250/mo |
| Insurance | ≈ $80/mo |
| Maintenance reserve | ≈ $150/mo |
| Total carrying cost | ≈ $2,145/mo |
Figures are general guidance and updated regularly, ask us for today's numbers in your target area.
This is where the back-of-napkin version falls apart. Every one of these is real money:
This is what usually decides it. If your student lives in one bedroom and you rent the others, the property can carry most of itself.
| Scenario | Rent per room | Monthly rent collected | Your net out-of-pocket |
|---|---|---|---|
| 3-bedroom condo, 2 rooms rented | $700/room | $1,400/mo | ≈ $745/mo |
| 4-bedroom home, 3 rooms rented | $650/room | $1,950/mo | ≈ $195/mo |
| No roommates (student alone) | – | $0 | ≈ $2,145/mo |
Figures are general guidance and updated regularly, ask us for today's numbers in your target area.
Compare that net number to what you would have paid for dorm or off-campus housing anyway. In the 3- and 4-bedroom cases, you are often at or below what you would have spent, while building equity.
Your return depends heavily on the exit, and four years is a short hold. Two things drive it: whether the property appreciated, and what it costs you to sell.
| Item | Estimate |
|---|---|
| Purchase price | $250,000 |
| Modest appreciation over 4 years (≈3%/yr) | ≈ $281,000 |
| Principal paid down over 4 years | ≈ $17,000 |
| Cost to sell (commission + closing) | ≈ $17,000–$20,000 |
| Rough equity position at sale | ≈ $78,000–$81,000 on $50,000 invested |
Figures are general guidance and updated regularly, ask us for today's numbers in your target area.
That looks great, but it depends entirely on appreciation holding up. If values are flat, selling costs can eat most of your gain. That is the honest risk, and it is why the hold period matters so much.
Buying, selling, investing, or just curious what your home's worth, reach out and one of us, a real person, texts or calls you right back.