Just a indecisive college student itching to buy some property

Just a indecisive college student itching to buy some property

Member since 2018 · 2 posts · 0 votes

 I am currently going to Georgia State University in Atlanta, Ga. Right now my dad is paying $850 a month for me to live in a private room inside of a 4 bed/4 bath downtown condo and my lease is up in 2 weeks. It has fascinated me that these people were getting $3600 for each one of these units and it's been driving me to want to do the same. My lease is almost up and I am interested in purchasing a home around the city for 100,000 or less and renting out each room on Air-Bnb. I have around $5000 saved in the bank and $30,000 between 4 credit cards. I planned on using around 30% of my overall credit to put a down payment on a home (I read is about 6% on average) and pay for all the other fees,including closing on the property. Then the rest of the  When my lease is up I can either renew it and get stuck in another lease OR I can move to my moms house (20 minutes away from school) and hope I can close on a house and start my real estate journey early. But if it works, then the mortgage will likely be paid for by my dad. I will building equity and I will be collecting all the revenue at the same time. I'm willing to invest all the money I have saved because if it backfires then I can just learn from my mistakes, commute from my mom's house and build even more capital to do it again. I am really eager to get out there and start making moves. If you were in my position what would you do? 

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Rental Property Investor · North Fork, NY · Member since 2016 · 1k+ posts · 631 votes
8y

@Andrew Cecce

Wow. First, congratulations on thinking about investing at this age. You see your dad is spending a good amount of money just to pay for your rent and think it looks easy. It's simple but not always as easy as it looks.

Buying a house with credit and $5000 sounds reasonable enough but without a job how will you get a mortgage, or is that where Dad comes in again?

Why don't you ask Dad what he thinks of your plans. How about asking him to partner with you? His credit and your skills at learning how to be an airbnb host?

Why don't you move in with Mom anyway and save your dad $850/mo? Maybe then he'll be able to partner with you, after tuition is paid for and stuff like that.

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  • Rental Property Investor · North Fork, NY · Member since 2016 · 1k+ posts · 631 votes
    8y

    @Andrew Cecce

    Wow. First, congratulations on thinking about investing at this age. You see your dad is spending a good amount of money just to pay for your rent and think it looks easy. It's simple but not always as easy as it looks.

    Buying a house with credit and $5000 sounds reasonable enough but without a job how will you get a mortgage, or is that where Dad comes in again?

    Why don't you ask Dad what he thinks of your plans. How about asking him to partner with you? His credit and your skills at learning how to be an airbnb host?

    Why don't you move in with Mom anyway and save your dad $850/mo? Maybe then he'll be able to partner with you, after tuition is paid for and stuff like that.

  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    You’ll need an on going income or have your parents co-sign the loan. Can’t use the credit card money for the downpayment. Finish school. REI will be here when you’re done
  • Atlanta, GA · Member since 2017 · 54 posts · 8 votes
    8y

    Mr. Andrew, I'm in the same boat as you are as a recent grad, and have been doing some research and networking for the last 6-8 months here in Georgia by going to the BiggerPockets meetings here in the City. Best advice that I've learned so far is identify your market, the type of property you'd like, figure out how much you could dish out per month to pay for a mortgage (safely), get involved with an agent and lender, and start your journey. By doing this you know what you want, you know what you can afford because the lender can lay that out for you, and the agent can help you find it.

    Don't get too caught up in analysis paralysis, which means you'll read tons of information on here and in other places that will tell you 1000 ways to do this. Pick what works for you and stick with it! Come to the BP meetings here as well, a bunch of great people and connections.

    A good idea, one I wish I would've followed now after I recently purchased my first home, is to find a (2-4) unit property, stay in one unit and rent out the others. There are some areas in Atlanta that you can find cheap properties, but they will need some rehab and they will be in some rough parts of town. Vine City, Oakland City, and Washington Park are some areas. East Point is a good area as well, just try and stay close to Downtown East Point.

    Vine City, as long as stay close to the AUC, is always a good bet. Those are getting gobbled up. Get with a lender, let them know you're looking for multifamily properties in Atlanta under $100k, get with a lender who will give you a loan for a (2-4) unit, and roll from there!

    Good luck my friend. I'm right there with you. If I find something myself, I'll let you know.

    I would advise you NOT TO USE YOUR CREDIT LINE for your downpayment. That gets risky. First time home buyers can put down as little as 3% on a house for a downpayment so use your first time homebuyer status to your advantage.

  • Member since 2018 · 2 posts · 0 votes
    8y

    Hey Nancy, 

    Thank you! I always hear people talk about how they wish they started earlier and I like to learn from people's mistakes. But I was thinking the same thing regarding partnering.  I'm really just staying here on campus for the convenience (I have a car but it's near it's end) and to network. $850 really is a lot and I'm really going to consider moving back with my mom any way because he will probably make me pay him back when I graduate anyway. He lives in Florida so it might be hard for him to come by and micromanage (he's kind of a control freak). I will definitely talk to him about it though.

    Andrew Cecce

  • RE Investor · Newnan, GA · Member since 2015 · 309 posts · 132 votes
    8y
    Andrew Cecce great first step! A couple of smart decisions at this point in life will be very beneficial. I would look for a 2-4 unit property and rent out the other units, you could also rent out the extra bedroom in your unit for additional income. Talk to a lender and your parents about what you can afford, then find an agent to send you properties that meet your criteria. Your Dad will save $850 a month at the very least. Feel free to reach out if you need any help or advice. Good luck!!
  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    8y
    Why AirBnB? I’d suggest to forget all about that idea and post this same question in more of a general forum. You’re thinking correctly as the person who owns the building you’re living in is likely a very happy person. I’d suggest reading 3-4 books and then come back to the forums with more questions. Rich Dad No and Low Money Down Sell or Be Sold E Myth Cash Flow Quadrant
  • Real Estate Broker · Temecula, CA · Member since 2014 · 994 posts · 783 votes
    8y

    Check the city to make sure air bnb ;s are allowed in that area. too.

    Great job thinking about ways to make money and invest!

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