I am an incoming college freshman and I would like to buy my first rental property next summer. However, my largest concern is my lack of personal funds (less than 3k in savings) as a safety net for a necessary expense early on (a broken boiler, leaky washing machine, etc.). Are there any stories or solutions to buying a rental property with very little money in the bank?
You are in a difficult situation. Young with possibly no credit and low available capital. Unless you found a BRRRR deal that works out perfectly assuming you would qualify for conventional take-out financing, you might have to just wait a while.
Hey Francis, unfortunately, all of the "gurus" out there saying you can get into real estate without using your own money are pretty misleading. It takes a good amount of capital to get into any sort of investing and real estate is no different. You have to come up with the capital somehow to get started, even if it's not out of your pocket, and that takes relationships. One of the best ways to get started is to use an FHA loan with low money down and buy a house hack. The good news with being a college student is you should be able to easily rent out your rooms to other students. Just do your best to screen them well and find roommates who will respect your property and not trash it.
Thank you Parker and Curt for the feedback. For now i'll keep learning and networking until I've raised enough capital.
With out any real knowledge of your goals or areas, price points of homes, etc., I would have to agree with some other comments and that you might not have the funds yet. However, this is a great time to learn. I would read as many books as you can on the subject. Read until the major points in the books all kind of sound the same and you can almost guess what the next chapter is about. It will help to be that immersed.
Since you are going to going to college (hopefully on campus), you might be able to get a job at a property management company. That could give you some hands on experience in the rental space, or at least see how to take care of property. This will also give you some income throughout the school year.
Keep saving, keep learning!