Hey, Thanks for reading my thread, sorry if I sound ignorant. First of all, my name is Chris and I am a freshman in college. Ive been the property managers for my father's rental property for the past 3 years. I am wondering how I can buy a house myself and rent it out.
My father and I really had no clue what we were doing when he bought a house close to the local university. He bought the house for $106k, $40K less then it was worth from a relative and so far has put $25k into it. It now has an income of $1800 for 6 bedrooms and is worth a lot more. A lot of my work was dealing with tenants, doing minor repairs and other maintenance on it. I think having the experience from this is a huge advantage at my age. Being only 18yrs old, my father is always telling me its never to early to get started investing and making money. I have absolutely no credit, no debt and only $4200~ in the bank.
I found a potential house priced around 130k that I believe can bring $1700 income a month. It has 5 bedrooms, a lot of off street parking, modern kitchen and a large deck - all things college students love. Located next to a campus of over 35,000 I am not worried about finding tenants for it. My fear is if the house would need any repairs the first year.
I am sure that my father would financially back me anyway he could without directly putting his money into it. I don't know if there would be a way for him to co-sign the loan. My biggest problem is I am not really sure if an 18yr old with $4200 in the bank can actually accomplish this. I looked at interest only loans and no money down loans but it seems like those are not for individuals wishing to rent out the house, correct me if I am wrong. Any advice or suggestions on how to get started would be greatly appreciated.
where abouts in the country do you live?
1700 in rents from a property for 130k is pretty solid - over a 1 rent/debt ratio -
can you scrape together any other money - like would your dad loan you some money? what about owner financing?
whatever you do, don't rush into it, i'm just throwing out a few ideas at you.
keep in touch!
IM in a similar position. the best way i would know how to do it is standard mortgage and just have more cash on hand. I figured iw ould like 15-20K cash. But this isnt possible for you, it doesnt sound like at least. Do you have an assests you can sell to increase your cash? Like a nice car or somthing? They interest only loan would be somthing i would do if i was a little more advanced, and possibly looking at a short term hold on a note in the high 6 figures to 7 figures, but thats just me. Good luck, i will definatly let you know if i find any kind of creative financing to help yours and mine situation out. Im 21, so i got a couple years on you. I am a property manager for a couple properties; but mainly i am into land development.