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!!

[Erik Estrada]

Happy to connect!

[Robin Simon]

Quote from @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!!

This sounds like a good plan - sticking to the duplex or SFH for students is good too since most DSCR Lenders generally stay away from "student housing" but if you are looking to purchase a rental property that can easily be utilized to rent to any tenant (adult, family etc) including students, you should be OK

[Travis Turner]

Hey there! Happy to help in the Lubbock market. I am an agent here, however i also invest in property myself, and run a property management company. So we pretty much can do everything from start to finish. Feel free to give me a message, we can connect! 

[James Wilcox]

Quote from @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!!

Choose the location where you can assemble the best team. College towns naturally attract students who may become applicants for your rentals anyway. While true student rentals typically operate on a per-bedroom basis, your lender might not favor this approach. Alternatively, consider furnished rentals, particularly for students in medical programs or those undergoing residencies. Although IDK how DSCR lenders would perceive this strategy, but it does align more closely with long-term rentals and several still do STR properties. If you require assistance in Lexington, that's my expertise, and furnished rentals are consistently sought after here.

[Samuel Diouf]

Columbus, OH, is a great university city as well. There are plenty of multifamily properties close to campus and the city overall is growing at a rapid pace. Multiple billion dollar companies are pumping money into the market and it's bringing a ton of attraction and growth to the city.

[Keenan M.]

Quote from @Robin Simon:

Quote from @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!!

This sounds like a good plan - sticking to the duplex or SFH for students is good too since most DSCR Lenders generally stay away from "student housing" but if you are looking to purchase a rental property that can easily be utilized to rent to any tenant (adult, family etc) including students, you should be OK

Thanks for the response, Robin! I did not know that most DSCR lenders don't prefer a business model aimed towards student renters. I'll definitely keep that in mind as I go about my research.

[Keenan M.]

Quote from @Erik Estrada:

Happy to connect!

 Thanks Erik, I have sent you a PM. Looking forward to talking!

[Keenan M.]

Quote from @James Wilcox:

Quote from @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!!

Choose the location where you can assemble the best team. College towns naturally attract students who may become applicants for your rentals anyway. While true student rentals typically operate on a per-bedroom basis, your lender might not favor this approach. Alternatively, consider furnished rentals, particularly for students in medical programs or those undergoing residencies. Although IDK how DSCR lenders would perceive this strategy, but it does align more closely with long-term rentals and several still do STR properties. If you require assistance in Lexington, that's my expertise, and furnished rentals are consistently sought after here.

 Thanks, James - I would love to connect! Your knowledge of the Lexington area would be a great help. 

[Keenan M.]

Quote from @Travis Turner:

Hey there! Happy to help in the Lubbock market. I am an agent here, however i also invest in property myself, and run a property management company. So we pretty much can do everything from start to finish. Feel free to give me a message, we can connect! 

 Thanks Travis! Hope to connect, very interested in the Lubbock area!

[James Wilcox]

Quote from @Keenan M.:

Quote from @James Wilcox:

Quote from @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!!

Choose the location where you can assemble the best team. College towns naturally attract students who may become applicants for your rentals anyway. While true student rentals typically operate on a per-bedroom basis, your lender might not favor this approach. Alternatively, consider furnished rentals, particularly for students in medical programs or those undergoing residencies. Although IDK how DSCR lenders would perceive this strategy, but it does align more closely with long-term rentals and several still do STR properties. If you require assistance in Lexington, that's my expertise, and furnished rentals are consistently sought after here.

 Thanks, James - I would love to connect! Your knowledge of the Lexington area would be a great help. 

Just shoot me a DM and we can go from there.

[Will Gaston]

@Keenan M. re: which college to choose, I'd thoughtfully consider

- enrollment numbers

- applications

- acceptance rate

You want to see a trajectory that shows the college is growing, not shrinking.

This thread on student rentals may also be helpful:

Nearing 1,000 College Students: Here's What I've Learned

[Brandon Croucier]

Would love to assist you!

[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.