Updated over 8 years ago on . Most recent reply
Buying a rental property in Collage?
I live close(about 35 minutes) from where I will be going to school here in a couple of months. My mom would like me to stay on campus all of the years I go to college but my dad isn't so big on that. I was thinking after the first year, I would use the money I would spend on staying on campus and use that to buy a rental property? Would you advise someone like me to do that? Would it be smart for someone like me to do that with no real-life experience buying a home? If I do buy the rental, I would stay at home so I could earn the extra income form the rental. Let me know.
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Well it’s not impossible and can be a good thing but you’re gonna have two main “issues”. The first being if you intend on getting a loan, no bank will lend to you since you’re a student unless you also make substantial income.
You can get around this hurdle if someone like your parents co-sign the loan.
I finished school recently and when I lived on campus it was about 5k per academic year, which likely won’t be enough to buy a house.
Finally if you find a way around those main issues, have realistic goals as to what your cash flow looks like. If you have a mortgage you can likely expect 150-300 in cash flow if not, perhaps more like 400-600. Not to mention dealing with tenants and other things will be more headaches to deal with while in school.