DSCR Loan on first time investment - Interested in renting to students

[Keenan M.]

Hey all! 

My name is Keenan, I am a college student new to the REI space looking to venture into my first investment property (duplex or SFH) in the next year. I have no pay stubs/proof of income but I do have a very good credit score and 50-75k for a down payment. After some research, I'm thinking a DSCR loan is the best option for me.

As for the area(s) I am interested in: I am not entirely sure. I do not live in the continental U.S, so any investment would be OOS for me. As a current college student, I am very interested in the market(s) near big universities in smaller college towns. A few that have caught my eye are: Lubbock, TX (Texas Tech) // Lexington, KY (UofKentucky) // Athens, GA (UGA). I am not entirely committed to this demographic, however it is the most interesting to me. 

Any advice or guidance is greatly appreciated as I begin learning more about the great opportunities that lie in the REI space!!

[Tanner Lewis]

Some DSCR lenders will lend to first-time homebuyers, but many require that you own your primary residence. I suggest looking on BiggerPockets' "Find a Lender" tool to find DSCR lenders that are able to lend to first time home buyers.

If you are looking at college rentals, I suggest not renting-by-the-room. This strategy looks very lucrative on paper, but it is incredibly difficult to finance since it makes the property functionally obsolete. I suggest looking at small multifamily (2-4 units) and renting out with one lease per unit.