Can I Start Investing In Real Estate? - Tips for a Newbie

[Anthony Caraballo]

I am a Junior in college and my ultimate goal is to be financially independent. Ideally, I would like to have Rental Property Cash Flow cover my living expenses.

I am 20 years old and a Junior in college, I have read multiple bigger pockets books and watched numerous webinars trying to soak up as much information as I can. I am very attracted to the BRRRR method, I have always had a knack for renovation and have undertaken a few of my own projects, such as a complete remodeling of my bathroom, over the last year. For the most part I understand the BRRRR process and the importance of finding a good deal.

I guess my main question right now is who is going to lend money to a 20 Year Old with $80k in student debt and no steady income?

I am unaware of where I will end up (geographically) once I graduate so I don't want to undertake a property till then. But is that the wrong way to think about this? Should I be looking to invest in Miami while I am here for the next year and a half and get one under my belt before moving? 

I would greatly appreciate any tips on starting out as a young investor. 

[Evan Polaski]

@Anthony Caraballo  You are right in asking: who will lend to someone with no steady income.  But that can change.  Find a job that offers a schedule that works with school and get to work.  Real estate is a hustle at any phase, so might as well start now.  No class on weekends, that means it is time to work.  Classes don't start until noon, well 7-11 is still 4 hours of work. 

I would focus on hourly rate jobs, versus tips, as lenders would rather see consistent income. 

How is your credit score?  Do you have money on credit cards?  I don't think it is impossible to get started soon, but you will have to work for it, literally and figuratively.  Make a dollar anyway you can, and pay off your credit cards, buy some ramen and save the rest. 

With you not planning on being in Miami much longer, I would focus on finding a flip, near school that you can house hack until you graduate and are ready to move and sell. Once you have a down payment saved, can likely get an FHA loan with only 3.5% down, you can find your property and start rehabbing and getting rented. Charge less to your friends, since they have to live through the rehab, and get them to help. Then you have a renovated home, that your friends paid for and you make the profit when you sell and move.