House Hacking in College

[Ethan Holder]

I am in college and have been interested in eventually getting into rental properties after college. But after reading some more books on the topic I have been thinking about trying to buy a house and rent to the people I was planning on renting a house with. The problem that I have been running into as I have been looking at properties and running the number is that I won't make much money after I have paid mortgage, insurance, taxes, maintenance, etc. Is this normal while house hacking, or am I not finding good enough deals? Should I count me living there for free as getting "paid"? Should I wait until after college to get into real estate? I wasn't really expecting to make much money while living there, but I am worried about being able to save enough money to be able to pay for CapEx. when things do break. For reference I have enough money saved up to fund it for six months without tenants, and also my school is completely paid for so the majority of the money I make can go into this property.

[Kiera Underwood]

I'd absolutely count the money you save on living expenses as getting paid! If you can lower your costs to live per month by even $200 a month, you're meeting most experienced investors standards. 

Simply get a home warranty to cover cap ex if it goes out. You can ask your seller to cover that in the TRR. If they don't want to you can ask them to raise the price and then cover it. You'll pay a tiny bit more for your loan, but that cash won't come out of pocket. 

As far as finding deals, I'd get really clear on your criteria and when you find something that meets it, move very very quickly. 

What all are you factoring into your numbers?