College student planning to invest in real estate

2 Replies

I’ve been looking into investing in rental properties recently and was wondering how i should go about this as a fresh college graduate. My plan at the moment is to save 20% of my monthly after tax income while building up my credit score. At first I was thinking about investing in townhomes, but I was wondering if I should buy something cheaper to start out? I'd be willing to even buy out of state and hire a property manager seeing as I don't have a lot of experience doing maintenance. Any advice on the best way to start out would be appreciated. Also, i'd like some guidance on what I should be researching because there is a lot of information out there. My goal is to have 2 rental properties by the time i'm 30.

Hi, I think you shouldn't be quick to get into real estate. I think it's great for you to start building your credit and saving your money which you are planning to do and also start scouting for undervalued properties. I'm also getting started and in my opinion, I think duplex is the best place to start.

Start wholesaling first. You can do it with no money. Better if you have a few hundred or so to start but it can be done with no money if need be. Make $10K+ per deal, takes you 3-4 hours. Then, once you've knocked out some wholesale deals you can get into rentals. 

Alternatively, start rehabbing immediately using OPM(other people's money). There are a TON of people and lenders out there and don't care about how much money you have or what your credit score is. It's all based on the deal. Bang out a couple rehabs, make $50k-$100K+ each, and you're on your way.

If you're interested in wholesaling, check out my very detailed post here:

https://www.biggerpockets.com/forums/12/topics/862964-wholesaling-101-how-to-wholesale-for-beginners

Promotion
Jamestown Invest
Build a well-balanced portfolio with CRE
Considering CRE Investing?
Download this whitepaper and learn about CRE investing from a manager with a 38 year track record
Learn More