Student trying to do Real Estate

11 Replies

Hi i'm currently a student at University, i'm fairly new and i was hoping someone could point me in the right direction. 

I would like to start investing in like a multi-family apartment but is this even possible given my situation as i don't have a "stable source of income/verified employment" i saw things like no doc mortgages, co-signing on a mortage etc. and things like that but is there another way to go around investing given my situation? 

Money isn't a huge issue for me at the moment i have around a 50k bankroll (idk if that is too little to start investing?), most of it is acquired through poker and i do make 5k per month (on avg because you can have like a 10k month but then next month be down like -1k like trading etc.) but it's not considered a real job i have the bank statements to prove to a lender but other then that i'm not sure what direction i should go any advice and posts are appreciated thanks!

$50k is certainly enough to start.

Did you want to life in one of the units? If so, that would be a "house hacking" type of investment. You can search on that for information. If you are claiming your income on your tax returns, that should be enough to document your income.

If you're not going to occupy a unit in the property, I suggest talking to local/community banks. They do lending on investment properties that larger lenders don't do.

I agree with Kevin here. Also, if you plan on living in one of the units you could look into FHA loans to further decrease the down payment you would have to pay.

You can search "house hacking" on this site.  It is a term that is used a lot and mentioned in a lot of the podcasts.  Getting use to house hacking early on before having a family and wanting more "privacy" is a great way to start.

@Evan Tan Congrats on deciding to start investing in RE early in life! As @Kevin Sobilo mentioned, house-hacking is your best bet. You may need to have your parents or other partners to co-sign on the loan. Other than that you should be able to cover the down-payment with your funds. This strategy is often referred on BP as BRRR (buy, renovate, refinance, and repeat). There're also books available on it here on BP under the Edu section. In addition, you can search for BRRR here and will find a ton of materials.

Best of luck in your journey!

@Alina Trigub , actually I believe house hacking is a different from BRRRR.

In house hacking, I believe the idea is to buy a property (single family or up to 4 units) using a conventional fixed rate loan with a low down payment and then to live in it for the required time and move on to buy another property the using the same method. In this way you are able to acquire multiple rental properties at low fixed rates using loans intended for owner occupants.

In BRRRR, you buy a distressed property or at least one that has potential for substantial improvement, rehab it to build equity, rent it for positive cashflow, and then refinance out what you invested or more to have funds to do the next deal.

@Kevin Sobilo You're correct in the fact that BRRR is different from house-hacking. My bet. However, the two strategies can be combined and applied together by buying a distressed property and living in one unit while fixing the rest. And then once you go through the full cycle of renovating, refinancing, you can take the cash out funds and buy the next property with it.

Best!

Originally posted by @Kevin Sobilo :

$50k is certainly enough to start.

Did you want to life in one of the units? If so, that would be a "house hacking" type of investment. You can search on that for information. If you are claiming your income on your tax returns, that should be enough to document your income.

If you're not going to occupy a unit in the property, I suggest talking to local/community banks. They do lending on investment properties that larger lenders don't do.

Yes i wouldn't be opposed to living in a unit, and no i'm not claiming that income on tax returns it's mainly for fun and AFAIK i don't want to and don't need to pay taxes i think

Originally posted by @Alina Trigub :

@Evan Tan Congrats on deciding to start investing in RE early in life! As @Kevin Sobilo mentioned, house-hacking is your best bet. You may need to have your parents or other partners to co-sign on the loan. Other than that you should be able to cover the down-payment with your funds. This strategy is often referred on BP as BRRR (buy, renovate, refinance, and repeat). There're also books available on it here on BP under the Edu section. In addition, you can search for BRRR here and will find a ton of materials.

Best of luck in your journey!

Thank u for the post!, that sounds quite interesting and i will look into BRRR and house hacking.

At the moment i am just concerned with being able to purchase/invest in a property as i don't think i will get full-time job in like 2 years or so (maybe later because i think i may want to take some time off after graduating pursuing other things) and i would like to start doing RE as soon as possible but it seems that there is no other way besides co-signing or doing trying to file income under tax returns as kevin mentioned and hopefully i will get approved by a lender

@Evan Tan RE investing offers tons of different avenues. You can do note investing or wholesaling or or even invest in RE through crowdfunding sites. There's no loan from your end involved in these types of investing. So do your homework upfront as to what you can do now and then take action!