No Money Options for College Student

[Noah Ehler]

Howdy, BiggerPockets!

I am currently a 3rd year college student in the Bryan-College Station area looking to start my real estate investing journey. Even though I am a real estate agent, I want to get into the investing game and figured I would ask if anyone has any recommendations on starting out. I have heard a lot about no money down options, but would love to discuss something like this in more detail from someone who has done it before. Any help is appreciated. Thanks!

[Ryan Thomson]

@Noah Ehler first of all Gig em'?! Maybe? 

I wish I was thinking like you in College! Here is an interesting idea. Use your knowledge and drive to convince your parents (or other co-signer) to get a home near your college. Co-sign with them and put some money down with them if you can.

Buy it as YOUR primary residence with your parents as the co-signers. This would allow you and your parents to only have to put 3.5-5% down. Then you rent out the rooms to your college friends. This will probably allow you to live for free and your parents to avoid a dorm or expensive home payment while you are in college. Not to mention you can both cash in on appreciation and loan paydown.

If you really wanted to scale, you could do this each year. Rent out the last house to a new group and move with your friends to the next house. This is a great way to scale and you only have to put 5% down if its your primary residence each time.

You obviously need to convince your parents or (someone who would co-sign and help with the downpayment) about how good of an idea this is. But if they are savvy money people and they trust you (which I bet the do), then this seems very doable. Maybe give them part of the equity or a monthly fee until you refinance and get their co-signing off the loan.