Naval Academy student looking for investing advice

[Kevin Konrad]

Hello BP community! My name is Kevin, I am 23 years old and currently attending the Naval Academy in Annapolis MD. I am new to BP but have recently been trying to absorb as much knowledge as possible from the website/podcasts. I recently inherited 2 townhomes in north Denver that bring in $3000 per month after the normal expenses are paid. I am looking for any guidance on how I can smartly use the equity of those homes that are paid off and purchase a home here in Annapolis or close by. Due to my student status for the next 2 years my actual income from the Navy is very low ($300/month) but with the rentals and my personal savings (~40k) I believe I could start expanding my real estate portfolio. If there is anybody out there willing to give some advice, whether it be “full steam ahead” or “wait until you have a solid income” I would really value the advice!

[Travis Paez]

I’m an investor in Annapolis. I’d be happy to chat about your situation and plans. Please call or email me so we can get some coffee or something.
Looking forward to it.

[Mark K.]

@Kevin Konrad, my oldest son is a LTJG in the USCG and my youngest son is a firstie at the USCGA. Congratulations to you on the Naval Academy. I'm a retired ETC USNR.

As you know, in 2 short years when you become an Ensign, you will be making good money. I know an Ensign in the CG who bought a house in Pensacola, as he's in flight school, and he's making good money using it as an AirBNB. 

Both of my boys invest in stocks. My oldest son is now in Hawaii. When he's back in the continental US, I'm going to help him either house hack or to buy a rental home. 

I'll do the same for my youngest son when he's ready to be a landlord. 

If you were my son, I'd say keep the rentals you have, start a Roth and buy good, quality companies and once you graduate, then look to buy a rental home depending on where you get stationed at. 

Feel free to message me if you want more info. And, I'm not too far away from you if you want to meet up sometime. 

I do now have 5 rental units and I'm buying a 6th, so I can talk with you about stocks and real estate. 

[Adilah Curry]

@Kevin Konrad, congratulations! You seem like your on the right track and have the right thinking! You can still invest as a student, your schooling years can count as time "on the job" or as work experience in some situations if what you're going to school for is in the same field as your employment. 

Additionally, the income from your rentals can be counted as income. You'll need to be sure to shop lenders ( for example if you're doing a 203k or Fannie Mae Homestyle, which are both renovation loans). However, some lenders are going to have strict requirements & guidelines while others can be more forgiving & accommodating .... particularly if you're wanting to buy a fixer upper and use a combination of the pulled equity along with a small renovation  loan. 

This way, you gain the experience of a renovation (which can be light -medium and will all be handled by contractors), you can show payment history and build credit with a smaller loan amount.  You'll have that experience under your belt as an investor, so when looking for future opportunities, you have more leverage. Lenders won't see you as a 23 yr old kid that inherited some property (risk), but rather an experienced & successful investor. You'll actually have some skin the game. Just my 2 cents...you have options though.