I Need Housing, But I Want Income Too

[Kenya Glenn]

Aloha,

I'm a new upcoming graduate student who is attending the University of Michigan this fall. I am currently looking for housing, but see that renting out in the midwest is on the high-end of things. I have enough money to put a down payment on a house about 15/20 minutes of the campus, and feel I am more than capable to find renters quick. 

Truly I just need advice on where to start, what to look for, what should I say?

I've looked at a few places in Michigan and talked to a few leasing agents but nothing sounds like what I want of what I'm looking for and I'm kind of on a time crunch. I've looked at plenty options but maybe I'm looking at things wrong? Maybe my vision is unrealistic?

Any advice helps. 

Mahalo. 

[Jason Wray]

Kenya,

Best advice for you would be to look for a Multifamily 2-4 unit which you can use FHA or Fannie Mae fro example to buy and rent out the other units. FHA only requires 3.5% down and Fannie Mae requires 5% both up to 4 units. Fannie Mae will have the lower of the rates if you credit score is above 720 but FHA allows for a higher DTI (Debt to income) if income is tight.

Good news is both FHA and Fannie Mae will use 75% of the other units monthly rents as added income to qaulify. This goes out the window if you cannot show a rental agreement or verification of rent for current or prior rental history. This also makes for a good early investment considering you coudl move out as early as 6 months if needed and rent out all of the units.

There are some areas that would need to be discussed so that you fall into a positive explanation but its possible under a change of life circumstance reason.  I had an investor who helped their son buy a 4 unit and the son rented out the other 3 units which paid for his entire mortgage plus he had a positive cash flow remainder of $750 dollars a month.  That went a long way in helping him with food, books, and other costs. 

If you have any questions feel free to send me a message or email and check out my profile as well.