21 Years Old: Looking to rent property to college students

21 Years Old: Looking to rent property to college students

New York, NY · Member since 2016 · 18 posts · 0 votes

Hi all,

I am new to the BiggerPockets forum. First off, I want to thank all of you for providing me with a plethora amount of responses and discussions to read and learn from.

A little about myself, I am 21 years old, MBA Candidate at a NY school. I am very familiar with my schools area and the current off campus housing situation. I am a value investor when it comes to stocks and the same goes for real estate (Although I have not been involved yet). There is a great deal of money to be made renting to college students in my area. I know personally as I have rented with a few roommates. I would assume my landlord brings in around $50,000 a year collecting from us. That's not a bad secondary income.

I am looking to get involved in this business, I do need some guidance as I am young. I have a more economic background and financial service background so I do understand the interest rate climate and mortgage environment in relation to the stock market and global economy. I also enjoy scouting the housing market for value.

One thing I am missing is capital and advice/direction. Interest only mortgages seem to be the easiest way to maximize profits early, ARMs, fixed. I'd appreciate any advice I can get.

Hoping to meet a few potential people who could pay it forward and help me get my life/career started at a young age. I believe renting to college students could be very profitable. Appreciate all the advice I could get. Thanks

Thank you,

Michael

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  • Real Estate Agent · Pittsburgh, PA · Member since 2015 · 1k+ posts · 846 votes
    10y
    Originally posted by @Account Closed:

    Hi all,

    I am new to the BiggerPockets forum. First off, I want to thank all of you for providing me with a plethora amount of responses and discussions to read and learn from.

    A little about myself, I am 21 years old, MBA Candidate at a NY school. I am very familiar with my schools area and the current off campus housing situation. I am a value investor when it comes to stocks and the same goes for real estate (Although I have not been involved yet). There is a great deal of money to be made renting to college students in my area. I know personally as I have rented with a few roommates. I would assume my landlord brings in around $50,000 a year collecting from us. That's not a bad secondary income.

    I am looking to get involved in this business, I do need some guidance as I am young. I have a more economic background and financial service background so I do understand the interest rate climate and mortgage environment in relation to the stock market and global economy. I also enjoy scouting the housing market for value.

    One thing I am missing is capital and advice/direction. Interest only mortgages seem to be the easiest way to maximize profits early, ARMs, fixed. I'd appreciate any advice I can get.

    Hoping to meet a few potential people who could pay it forward and help me get my life/career started at a young age. I believe renting to college students could be very profitable. Appreciate all the advice I could get. Thanks

    Thank you,

    Michael

    Hey Michael,

    it's great to see that you are getting started! First thing though is that your landlord may very well be bringing in $50,000, but his cash flow is likely much less. When you are considering your first property make sure to consider ALL of the expenses. You can utilize the calculators on this site to make sure that you do that.

    As far as mortgages are concerned if you are going to be an owner occupant for at least a year a conventional fixed rate mortgage is an awesome idea in my humble opinion. Interest rates are so low it's practically free money.

    I'll send a colleague request over and if you need anything at all feel free to reach out.

    Tony

  • New York, NY · Member since 2016 · 18 posts · 0 votes
    10y

    Thanks Tony. 

  • New York, NY · Member since 2016 · 18 posts · 0 votes
    10y

    Any experienced people who can offer some guidance?

  • Cameron TopePro Member
    Property Manager · Katy, TX · Member since 2015 · 1k+ posts · 1k+ votes
    10y

    Set your goals first then worry about the semantics. 

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