Should I wait to purchase first Investment property?
Your question is great but more information is needed?
1st) are you currently renting- if you are renting then you could buy a house and house hack or duplex, living in one side while tenants pay for the building in the other, or a triplex or 4-plex. The key is do you have skin to put in the game, otherwise it will be tougher to find a deal to get into.
2nd) do you have car payments that is eating up your income? Many college students have more car than they can afford
3rd) do you have good credit, bad credit or no credit" Do you have someone willing to co-sign for you or JV with you?
4th) how much time are you going to remain in the area you are in?
I think almost everyone here will say "do it now" but its really a personal decision. If you invest in a property before you buy your primary residence, you may wish you waited since your first loan is sometimes a lower down payment percentage. For example my first home was 5% down and if you use that on an investment property you might be delayed purchasing your own home.
I would say you really need to know your market before investing, I personally researched for about a year before buying my first investment property.
Nathan Lilly , you are doing great and can afford to wait a minute. Assuming you are going to graduate in the next year, wait to purchase to make sure the job opportunity that presents itself will not be soured by having to leave a rushed property purchase or worse, prevent you from leaving the area.
After you get your post graduation dream job, which may take longer than expected, enter into a short term lease and take that time to learn the market you will be staying in (assuming you will stay there) and wait for that deal that fits your investment criteria, your numbers, and your future plans!
Just my 0.02$ but I think your future would be better served saving money and growing your RE investor knowledge here on BP and elsewhere in order to prepare for your big move forward in the future. Good luck and you are well ahead of all your fellow students by already thinking about the future and other forms of income.
Keric
Originally posted by @Nathan Lilly:
Hello, I am 20 years old in college and wanting to relocate after graduation. my question is should I purchase my first property in this coming year or wait until I relocate and start a career until I transition into real estate investing fully?
Depends. What are your goals?
Taking Action is the most important part of investing.
You are thinking in the right direction that making a decision on the timing of your investment and the market you invest in is your first action.
My first property was a house hack - I bought a three bedroom house, lived in the master bedroom, and rented out two rooms for $600/month all bills paid. The rents went directly to a bank account I set up for that property and was more than my mortgage. I also contributed $600 per month (essentially "my rent") to that operating account. Using this method I was able to build an operating fund for that property, to cover expenses, repairs, maintenance, etc.
I highly recommend house hacking as your first investment.
Originally posted by @Jay Helms:
Originally posted by @Nathan Lilly:
Hello, I am 20 years old in college and wanting to relocate after graduation. my question is should I purchase my first property in this coming year or wait until I relocate and start a career until I transition into real estate investing fully?Depends. What are your goals?
My goals are to have enough passive income to retire when I'm 40.
Btw how is the rental market in Florida?
I think the key phrase in your post that you will be relocating after graduation gives me all the information I'd need to answer the question. Wait. Wait the year before investing so that you can invest where you're going to be living. Having your properties nearby will allow you to self manage them and thats a key savings that you'll want to have in the early going.
I would not want to have had my first investment property been one where I needed to hire and manage a PM.
Originally posted by @Mike H.:
I think the key phrase in your post that you will be relocating after graduation gives me all the information I'd need to answer the question. Wait. Wait the year before investing so that you can invest where you're going to be living. Having your properties nearby will allow you to self manage them and thats a key savings that you'll want to have in the early going.
I would not want to have had my first investment property been one where I needed to hire and manage a PM.
That's what I was thinking, but I wanted multiple perspectives to reassure.
Thank you
@Nathan Lilly do you want to wait an additional year to become financially free?
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Developer
- IKEPTIT Real Estate LLC
Originally posted by @Nathan Lilly:
Originally posted by @Jay Helms:Originally posted by @Nathan Lilly:
Hello, I am 20 years old in college and wanting to relocate after graduation. my question is should I purchase my first property in this coming year or wait until I relocate and start a career until I transition into real estate investing fully?Depends. What are your goals?
My goals are to have enough passive income to retire when I'm 40.
Btw how is the rental market in Florida?
There are pockets but for the most part, great!!!
Hi @Nathan Lilly ,
Memphis is arguably one of the best REI markets in the United States. The Rehab margins fantastic, the ROI for Buy and Hold are in the Top 5 nationwide, and Memphis is a large city with a large population tons of RE inventory.
My personal recommendation is you do REI part-time while still in college and then full time for 6 months after graduation. Go all out. You'll make way more money than your fellow graduates and will build a nice amount of cash before moving away from the goldmine that you're currently in.
Excited to hear what you do next!
I don’t know too many college students who have the ability to buy a rental property so congrats on that alone. You want to make sure you have plenty of reserves set aside. Our market is one of the best. Tough choice so good luck on whatever you decide.
