Opt for public over private universities.

Private universities tend to apply restrictive requirements on housing and sometimes even require students to live in dorms for their entire schooling. Zaransky also says enrollment at private facilities is typically capped or severely limited.

Don't be afraid of the Animal House scene.

A concern that quickly comes to mind whenever you think about renting to students is what condition the property will be in after they move out. It's a valid concern, especially if you watched the movie Animal House. However, Zaransky says a lot has changed over the years.

"Today's student housing is a product that has modern amenities, it's very well kept and if professionally managed correctly and monitored correctly a student-housing investment can stay in good condition, can be rented to responsible student occupants, and continue to give a good return to investors," says Zaransky.

He writes in his book that you do have to have a stomach for things that you might not see when you go view traditional investment properties. Zaransky says keep in mind these are college kids so you're likely to see beer cans, empty pizza cartons and laundry strewn about. But that doesn't mean your place will be torn apart if you rent to college kids. Zaransky claims kids these days will likely keep up the place a little better. "That's the norm today not the old beat-up party house."

As with any investment, be sure to do your research and take your time to determine if the property will serve your needs and ultimately provide you with a profit.