Buying a rental property in Collage?

9 Replies

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.

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.

@Caleb Heimsoth For my school it is about 6-7k per semester for food and dorm. I could maybe try seller financing? 

@Mike Bereck that’s another way to go.  It’ll just be harder to find.  Not impossible though 

Got ya. Yeah I mean if I can’t get sell financing then I can save the money and wait but it would be nice to get ahead and have some freedom by not being in the parents house all the time 😬

Why not just live on your own off campus? That would be cheaper.

Yes it would be and I’ve thought about that but I guess I just feel like I’m throwing money as in it’s not being put into equity. Many options.

I'm a landlord and also a tenant.  Renting from someone can also have many advantages and isn't necessarily just throwing money away

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here