First Rental in Another State

2 Replies

Hey Everyone!!

I am just starting my education in real estate investment and giving myself a year to get my first rental property. My fiancee is currently in his first year of law school in another state and I want to be able to buy a house near the school, where he can be in one unit and rent out the others to his classmates. He would stay rent free and I would have my own house at 27!

Obviously I'm a newbie so I would love to hear everyone's thoughts about this general plan. To anyone that have done this kind of deal, do you have any advice on how to get started? What are the challenges with buying a house out of state? From a tax perspective, would this be considered a personal use property or investment property? Thanks to everyone in advance!

@Marsha F. So you want to buy an investment property out of state and let your fiancé live in it rent free? If you do that, I’d say collect rent from him. Also since you won’t be owner occupying it you’ll need to put 25 percent down. What’s the size of the town? I wouldn’t go buy in a small college town. What law school is it? As far as tax purposes, it’d be a normal rental, everything expense wise for it is deductible