How to get financing for a property without a steady income?

Question

Hello,

I am a student at The Ohio State University, and my goal is to house hack a property in Columbus, OH in 2024 in order to begin my journey in real estate investing and save money on housing while in college. Can anyone chime in with advice/knowledge on the process of acquiring financing for a property? I will be a student without a full-time job or steady income when I plan to purchase my property. How will this affect my ability to get a loan?

Any information shared would be much appreciated!

Eliott Elias · Answer

Hard money or DSCR financing

Ashley Cross · Answer

Hi Alauren. If you’ve been working for 2 years at the same part time job your monthly income will be whatever you made over the last 2 years divided by 12. Your best bet is to find a family member with good income and credit to become the co-borrower. Depending on if you have a lot of student loans, that may not be feasible. If you’re really serious about real estate look for a mentor. Even if you can’t buy now, at least you’ll have a path to get started sooner than later. Good luck with everything!

Remington Lyman · Answer

You should just start cold calling. Then if you find a deal you can partner with someone that is lendable. I did that when I first got into real estate here in Columbus, Ohio

Chris Seveney · Answer

Why would you want to risk buying a property with no full time job? If you were to default and lose that home it would basically bar you from buying another property for years. There is a reason why they have debt to income ratios etc. Its meant to protect people.

Ryan Deasy · Answer

@Alauren Lane

congrats on looking forward to getting into real estate investing. i wish i started as young as you are. hard money is your best bet if you do not have private lenders. i started with hard money and it was huge for me. really allowed me to scale. happy to share my experiences and contacts if it would help

Nicholas L. · Answer

@Alauren Lane if you're on BP now, you're already ahead of the game! Here are some things to consider:

-When you graduate get a full time W2

-Rent for a short period, reduce your expenses, and build your credit

-Go to REIAs and network

-House hack as soon as you're ready (in other words, adequately capitalized!)

Steven Foster Wilson · Answer

If I were you I would be going to as many networking events and cold calling. Look into doing a hard money loan, if plan on getting a job so you can refinance out of it. Make sure you run your numbers on that as well though. I would look into what the numbers would be with a partnership? Know first what you could offer in the partnership and what you need in a partnership.

Scott E. · Answer

I think Chris is the only person in this thread who actually read the original post.

I echo what he has said. Don't buy a property. You're not ready. Focus on school and learn more about real estate during your down time. Down the road once you have at least some steady stream of income(and savings for down payment/closing costs) then you can start looking at your first house hack.

How to get financing for a property without a steady income?

How to get financing for a property without a steady income?

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