Thread: College Student interested in Investment Property!!!

Currently I'am a Junior in college and I have a unique situation. When I graduate I will be debt free due to an outside scholarship progam which is paying for me in full to go to school also graduate school. The program will pay for me to get an apartment after graduating from school as well but I was interested in saving some money and purchasing an investment property, something like a multifamily home or duplex and renting it while living in it. What would be the best thing for me to do if I'am interested in flipping houses and renting out investment properties???

First of all I want to apologize that no one has gotten to your question.

Moving on, with today's lending environment you had better have some good cash and credit to move on to investment property. I am not exactly sure if you will be living in the apartment still, but it would be wise to start off with a duplex, live in one side, and then rent the other. That way you have a lot of control over the property. But here is the deal: SCREEN SCREEN SCREEN THE TENANTS. In my time as a property manager I controlled tens of millions of dollars of property here where the average home price is 175k. If you rent to good people then the land lording experience can be a positive one. Otherwise, watch out. You can lose more money rehabbing a place than you can possibly imagine. However there are good tax repercussions with investing in real estate. On that note, I suggest talking to a good tax CPA.

PM me with any questions.

Brad.

Find out what it costs to pick up a 4 plex in the area of the country that provides the best employment options for the industry you are gathering your education in. Once you have this figure it will near 15-20% higher by the time you leave grad school. Make sure that you save up 3.5% of this amount during your education. Go out and do odd jobs during weekends and breaks from school. This should be very possible if you work hard and make frugal choices.

While going through school keep impecable records of your rental payments, utilities, and any other monthly paid expenses. Then when you graduate and obtain your new job you will be ready to get approved for an FHA loan on that four plex.

Congratulations on graduating from school debt-free, that is a great accomplishment. The best piece of advice that I can offer is to focus on your income and savings. Most banks/lenders will want to see that you have a stable source of income and also that you have money for a down payment. The best course of action would be to save as much money you can during your first year out of college and use that money to purchase your investment property.

Originally Posted by dcobb1

Currently I'am a Junior in college and I have a unique situation. When I graduate I will be debt free due to an outside scholarship progam which is paying for me in full to go to school also graduate school. The program will pay for me to get an apartment after graduating from school as well but I was interested in saving some money and purchasing an investment property, something like a multifamily home or duplex and renting it while living in it. What would be the best thing for me to do if I'am interested in flipping houses and renting out investment properties???

Well, at a yet young age, investing on a property is yet too early even when you are debt-free. If I were you, I would focus first on my savings and income as well as having a stable job. Investment on a property would then be next If I think I already had savings and income for myself. But if you insist, maybe taking online training course about real estates and in the investments industry would be better for you to have proper and enough knowledge about the industry and market.