On the surface, student apartments might seem good for cashflow, but it generally doesn’t work out well.

Tenants won’t stay in the property for as long as other residential, so you are more likely to have regular periods of vacancy and have to go through the process of finding new tenants.

Demand for student apartments is cyclical, so it can be difficult to find tenants for the summer months.

Holding costs will take most of your income and the costs (interest rates, council rates, strata fees, management costs, etc) can easily increase faster than the rent increases.

Banks are typically reluctant to lend against student apartments and when they do, the LVR is lower than for other properties (or you need to use another property as security).