Planning for a Multifamily Investment Property As A First Home

[Halle Hughes]

My name is Halle Hughes and I am a college student in Minnesota majoring in Real Estate. I have just completed my third year and will graduate next May. I currently have an internship position with a real estate development company with offices in the Twin Cities area as well Denver; I am open to relocate to either area. Post graduation I hope to remain with this company and purchase and reside in a multifamily unit to begin my investment portfolio. 

How large of a property is realistic to aim for as a recent college grad without much capital or credit history? Should I start with a duplex or could I jump into a small apartment building right away? I will not have any student loans and hope to have saved around $6000 cash by the time I graduate. What are some financing options that I could look into? I’m open to any and all recommendations as I begin my investment journey. Thanks!

[Wayne Loux]

My senior year a good friend of mine and I purchased a two family that we wanted to move into post college. We fixed up one unit and rented out both while still at Rutgers. We graduated and decided to keep the small cash flow and move in with family to save for another home. 10 months later we bought another. I think there is no harm in starting small with a 2 or 3 unit and see how you like being a landlord/manager. I would highly recommend renting out rooms to your friends if you are living in one unit that has multiple bedrooms. If you have 2 years work experience or your degree is in the field you plan to pursue you should be able to get a loan easy. FHA or conventional is fine, if the place needs work I like FHA 203K loans. Hope this helps