Things to set up now for future investing.

[Alex Griffith]

Alright, so I won't be investing for another three years.

I'm a freshman at a military college, home now because of the coronavirus. I want to invest in the Fayetteville area, because I grew up here for the majority of my life and it is a great market.

I won't invest until after college because

1. I don't have an income

2. I won't have the time to check up on the property being stuck in the prison where I take college classes.

So what should I do now to prepare for my first investment? I would love to graduate, hopefully get stationed at Ft. Bragg, and rent a place until I find a deal I like. 

I would most likely look for a triplex or quadplex and do the househacking strategy, and then scale up into commercial real estate from there. I've been doing a lot of research, and will continue to do so.

1. Credit score. What credit score should I try to achieve for good financing on a quadplex at 21-22 years old? What is the best way to improve my credit score as a college student?

2. Evaluations. How do I tell if a property is good or not? Experience? The primary point here is knowing what is wrong with the house and what needs to be improved. HGTV scared me a little with all the extra problems and going over budget.

3. What else?

[Caleb Brown]

1) Credit score 700's would be awesome for lending, 3 years is plenty of time to achieve that. Open up a normal credit card, have a limit of $300-$500. Use it a few times a month and PAY IT OFF! Open up a gas credit card and Southwest airlines credit. Any credit card you open don't overuse it and overspend. Be accurate and on time on all your payments, if you miss a payment no matter the amount it'll effect you. 

2) When you evaluate a property many factors play into it. Are you looking for only cash flow? Only appreciation? Have enough reserves for 12+ months if rents are not paid. If you house hack the goal is to live for free or close to it, then move out. When you move out of the property it should cash flow. I'd listen to podcast and read books to soak up information. HGTV I think is made up half the time so don't trust what the TV says.