Lender or Creative Financing Recommendations for House Hacking as a College Student

[Payson Kelley]

Hey BP community!

I’m a full-time college student actively preparing for my first real estate purchase and looking for lenders or creative financing options from those who’ve worked with similar situations.

I’ve saved over $60K through self-employment and on-campus work, and I have an additional $20K in reserves. I also have student loan debt, but I’ve already set aside the funds to pay it off after graduation — so that’s not part of my down payment or reserves.

I’m planning to buy an off-market multifamily, live in one unit, fix it up, and rent out the others. I’m also open to a single-family off-market property, living in it for a year, rehabbing it, and then selling.

My credit score is 750, I have no consumer debt, and my fiancé will also be on the loan. She has stable W-2 income and two years of employment history.

Looking for advice on lenders that are investor- and student-friendly, or any other creative financing routes I should explore.

Appreciate the help!
— Payson

[Garrick Allen]

It depends.

I think the BRRRR method should always be a consideration if you are ok with the rehab portion of the process. This process starts with a rehab loan (10-15% down at closing). When done well, you can utilize cash-out refinances to acquire ore properties.

Taking the turn-key (move in ready) approach is an option, but you need to have cash on hand at all times as you will need a minimum of 20% down for most DSCR purchases. This approach can also prolong the time it takes you to acquire new properties because you will most likely be depending on cash-flow to fuel future purchases.

Lastly - 1-4 unit properties will, more often than not, come with less headaches than 5+ unit properties. With 5+ you may see higher interest rates, lower LTV limits, and longer appraisal periods.