First Ill give you a short background of my situation. I just graduated summer of 21' with a BS in Finance. I have obtained my first full time job here in Bloomington working at the local IU Credit Union where I'm currently making about 40k a year as a Mortgage Loan Processor. I am also currently half way through my online Masters program where I am expected to graduate at the end of next year. Over the past year, I have been trying to drown myself in as much information surrounding real estate investing as it is something I believe will enable me to become financially free quicker than any other route. I have 2 hurdles that I am trying to figure out how to get over in the process of obtaining my first property. The first unfortunately being my credit score. It is currently pretty low at around 645 (not for any derogatory reason just due to me only having a debit card and 2 bank accounts all the way up until I graduated, so I just haven't built any credit from CC or having any bills in my name throughout college) so the financing I would qualify for would be the highest rate unfortunately. While my credit is low, i have 0 debt other than about 10k in student loans that i wont have to begin paying until after i graduate. The other issue is gathering the DP & closing funds. Fortunately, up until I graduate from my masters program, my parents are covering my rent and then all other expenses are covered by me (utilities, gas, food, my dog, etc.). I am currently saving around 500 - 800 a month to try and save as much as I can as quickly as I can before I have to add all these other expenses to my bills like various insurances and things (I can stay on my parents insurance until 24 or 25 I believe). I would really like to be able to try and acquire my first property here in the next 12 - 18 months if at all possible and get out of renting ASAP. I am open to all different forms of real estate investing whether it be multi family, single family, or even just getting a place to flip to work on over the next year or 2 while me and my girlfriend live in it. Both our parents have remodeled their homes so we would be able to save a lot of money borrowing their tools and experience. Once my girlfriend is done with school here in the next 2 - 3 years we do plan on leaving Indiana for sure but have not decided where yet. Bloomington, IN is around 65% renter occupied so I have no doubt that we would be able to rent out practically any place that we can get our hands on here. It is also a big college town having Indiana University located here. I have even seen people going on reddit talking about how they can barely find anywhere affordable to rent and there are several apartment complexes here that even have a waitlist to move into them. I know this is probably a lot of info to take in, but essentially my question is should I try to look for some kind of other private financing in order to afford a DP & closing costs earlier so i can get started sooner? Should I just wait until I can build my credit a bit more and save enough of my own money for the next year or 2? Should I wait to get out of Indiana altogether and acquire my first property in the area I relocate to where I'll have a much higher paying job from obtaining my masters? Any advise is welcome and i am excited to see what kind of knowledge i can dig up from this forum!!

Indianapolis, Indiana

0 Votes