Is there a such thing as too soon?

Question

Hello all,

While working at UPS' part time graveyard shift to pay for school I religiously listen to self-development and real-estate audio books. My favorite so far is Set For Life by Scott Trench! With this being said, I just have one question for you knowledgeable folks out there.

Following Scott Trench's game-plan for early financial freedom:

1. Living frugally

2. Building a financial runway of half the U.S' average yearly salary

3. Scaleable Career* (still working on)

4. Real Estate Investing*

Is it possible/wise to purchase a cash flowing multi-family house hack, while still in college?

If not what should be my plan moving forward to close on a multi-family property within the next 1-2 years?

Trevor Davis · Answer

I agree with what Scott says. I think the next step would be contacting a lender to find out what you do qualify for (if anything).  Then you can ask what they want to see from you to get qualified.

When you do eventually get qualified, find out how much you are qualified for if buying a duplex, triplex, or a quad.  These amounts can vary.  I missed out on a great triplex because I didn't know my borrowing limit was higher for a triplex than a single family home.

Scott Trench · Answer

Welcome, Aaron! So glad that you joined BP and liked Set for Life. I'm a big fan of that book as well :).

I think it is very possible to purchase a house-hack while in college, but you will most likely need help from Mom and Dad to qualify for the mortgage and co-sign, unless you have a long history of making income or some unusual circumstances!

Aaron Ward · Answer

Much love Susan, thank you also for actionable steps I can take next, and also the encouragement to keep moving forward. In all honesty, it gets discouraging not having peers to form dialogue with and discuss a future of financial independence.

I'm honored to have access to this platform to interact with likeminded folks like yourself! Everyone please stay encouraged!

Susan Dobbs · Answer

First of all, welcome to the community!

Second, well done on investing into your own future and educating yourself about real estate while your cohorts are out partying!

I would most definitely speak directly to a bank or mortgage broker to find out what you're able to do as a first time home buyer. Every circumstance is unique and you would be a first-time home buyer which banks have all sorts of programs for.

If you have income and a down payment, another option would be to find a property that the seller would be willing to finance for you (the seller would have to own the property out right). Then, pay the mortgage and rent out the other units or rooms and watch the cash flow roll in. Be sure to also set aside part of your cash flow for unforeseen expenses (vacancy, damage, repairs, etc.). The step of "house hacking" will be an amazing investment that will be a great stepping-stone into the future. Be careful in all of your dealings and be sure to pop back on here if something seems amiss.

Keep reading!! Listen to all of the BiggerPockets Real Estate pod casts and read all of the books that you can! Best of luck!!! You can do it! Where there is a will, there is a way!! Go make it happen! :)

Dmitriy Fomichenko · Answer

@Aaron Ward welcome to BP. House hacking is a great way to get started while young, congrats!

Aaron Ward · Answer

Thank you Trevor for providing an actionable next step for me to take next!

Aaron Ward · Answer

Thanks Julio for the welcome, glad to have found BiggerPockets! I can tell this is a community that cares.

As a college student instead of saving thousands of dollars to place in the hands of "gurus," I found out through the BP podcast I can invest in books instead, while also reading and communicating intelligently on the BP forums; inching towards the goal of purchasing of my first multi-family house-hack.

1 Cor 13:4, "Love is patient, love is kind. It does not envy, it does not boast, it is not proud. It is not rude, it is not self-seeking, it is not easily angered, it keeps no record of wrongs. Love does not delight in evil but rejoices with the truth."

Aaron Ward · Answer

Thanks Scott for your response, you're my guy!

Since my parents are against co-signing, I assume I'll have to either find someone else willing to co-sign, be patient until I can produce enough consistent income or come up with another strategy/plan of attack as I continue to gain knowledge from BiggerPockets.

Proverbs 16:9. “A man's heart plans his way: but the LORD directs his steps."

Julio Gonzalez · Answer

Welcome to BiggerPockets, Aaron! You found the right place for information.

Is there a such thing as too soon?

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