Graduate student looking to buy first property, any advice?

Question

Hi, I am a graduate student that will be finishing up school within the next couple of years. I would like to build a consistent flow of supplemental income so that I make the world better through my research and not have to worry about paying for my expenses. I am extremely frugal and have hacked my life to save every dollar that I can. I currently live near the Hartford area and would like to jump into real estate. I am a self-driven person that loves to learn and take advice from those more experienced than myself so I am reaching out to you wonderful people to help me get started! Should I look at property near me for my first purchase or find one in a cheaper market despite it being further away?

Salim Douglas · Answer

Your right "Hartford" properties tend to need more work than properties in the surrounding areas. I would not recommend starting off your landlord business in Hartford. Tenant screening is essential to finding good long-term tenants. The tenant stock is on the low end (you have tons of tenants who have an evicted). If your an experienced landlord, you will be fine. Expect a lot of tenant calls.. mice/roaches/police ex.. I would only buy a north or south end property at "my price" ..I know the deal...The north end has more high maintenance.  That being said I own a property on the north end, and a property on the south end and they've been fully occupied for quite some time. In the end, it's all about how you manage your buz, landlording is  a relationship biz.... now matter where you own properties.

James McGovern · Answer

@Salim Douglas There are lots of properties in Hartford that are available but most are rat holes that need a lot of work especially in the northend.

Tj Hines · Answer

@Gowtham Yenduri that's awesome you were able to discipline yourself at such a young age. You are way ahead of the curve. You should think about acquiring a 5 plex. Live in one unit and rent out the other 4. This will put way ahead of the ball game. It will also give you management experience as well. Having the residents pay down the principle over time building equity to where you can take that equity and deploy it into another cash cow 5 unit or better yet even bigger. Good luck on your journey my friend.

Salim Douglas · Answer

Hartford has a plethora of affordable multi-family homes.. FOR STARTERS ..Purchase one of those homes (preferably a 3 family) with a 3 percent down FHA loan. Rent 2 floors and live on one floor. House hack this property for a couple of years,  learn how to "landlord" and save the 25 percent down for your next deal.  This first property should be relatively turn-key.. You don't want to get boggled down with a re-hab on deal number 1.

Theresa Harris · Answer

If you can get one close to your university, you can probably get roommates easier.  Find something that once you leave, it will still be making money.  You don't want to do a lot of renos (as you don't have a lot of money), so look for homes that require a cosmetic fix (paint).  Do you have the money to buy a single family home?  You will get further ahead as you won't have HOA/condo fees, then again taxes are usually higher.

Graduate student looking to buy first property, any advice?

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