FIRST DEAL - College House Hack

[Kyle Scofield]

Recently secured my first rental property investment by using a lease option strategy to house hack while still a junior in college in South Dakota. I'll be living for free and not have to share in other micellaneous expenses. All the cash I save now is for maintenance, improvements, and just being able to build a nest egg.

And the craziest part... I knew NOTHING about real estate investing. Only started to learn about real estate 8 months ago. I started with the Ultimate Beginner's Guide! Then continued to read every book written by Brandon, listened to all episodes of the podcast, and just dove into this amazing website called BiggerPockets. Thank you so much @Brandon Turner and @Joshua Dorkin ... This site has done wonders for my life. All it takes is a little time and dedication, small efforts day in and day out. 

You don't need a lot of money to get into real estate investing. You just need to be willing to work for it and it took me some time to realize it was possible for me. However, the more I learned the more excited I got. I couldn't wait. At the end of EVERY PODCAST, the question "what stops people from succeeding in real estate" always has the same answer! JUST DO IT. So I just decided to dive into the world of Real Estate Investing. 

Thanks to so many more people besides Brandon and Josh for helping me along the way. I've posted multiple times, read blog posts, as well as direct messaged other members. The site is so helpful. Don't know where I would be today without the site.

Can't wait to see what the future holds, cheers!

I bought with equity in mind. Using the last few months' experience in looking at comps, the property is worth about $65k which gives me a $20k when I can purchase it. 

The numbers for future rental: (using bigger pockets calculator)

Purchase price - $45k

Lease option fee - $3k

Down payment @ 20% w/ closing costs = $11,200

Future rent when graduated = $925

Principle & Insurance = $170

Property taxes per month = $108

Insurance = $85

Flood Insurance = $150

Vacancy @ 3% = $27.75

Repairs @ 15% = $138.75

Cap Ex @ 15% = $138.75

No property management as I plan to unload the property before I scale up. 

Monthly Cash Flow = $106

Cash on Cash ROI = 11.48%

[Brandon Turner]

Dude - awesome! Love to hear this! Starting out with a lease option? Look at you being fancy! :) that's so cool. Definitely let us know how it goes, and when you need help dealing with crappy tenants... we'll be here to help!