College student looking to invest in rental properties

[Zack Carson]

Hello all, my name is Zack Carson and I am a current chemical engineering student at NC State University.

My parents and I are looking to get into the market on rental properties in the Raleigh/Durham area.

I was hoping to start here to ask for any advice and make new connections as I start my journey!

My goal is to hopefully purchase a property and be renting it by the end of the year.

Thanks!

[Erik W.]

@Zach Carson (site is not tagging you for some reason???)

Hi and Welcome to BP!

It was about my junior year in college when I first got interested in real estate, so great timing!

A few thoughts:

1) Your first and best goal for right now is completing your degree.  Yes, I know there are a few exceptional folks who quit college and made billions, but typically they were not real estate investors (REIs).  More like Bill Gates/software geeks.  People who invented new products.  Real estate is more of a slow wealth building process.  So if you start churning out recipes for new chemicals that will revolutionize the world, then sure, quit and do something else.  Otherwise, be sure that whatever you do (real estate, etc) keep your focus on your degree.

2) Keep in mind that with C-19, demand for on campus, seated classes may be smaller than in year's past which means many people may stay home this semester and/or Zoom classes from Ma and Pa's basement.  Be sure to diligently scout your market and find what vacancy rates are like for the upcoming year.

3) By that same token, now might be a time to get some DEALS! Find the Ma and Pa land lords who don't have a full house of student renters and see if they might lease option (L/O) their property to you. L/O is a great way to gain control of a property for only a little money down (the option fee). Then you can take 1-2 years to see if the demand comes back, and then you've got yourself a house with paying tenants/roommates already. With an L/O, you're not the owner, just a renter, but you find sub-tenants to lease from you and their payments cover your rent and helps you save up money to someday exercise your option and buy the property. Likewise, if you find it's a disaster and you can't rent it out to cover your payment to the Lessor/Seller, then all you lose is your option fee. It's kind of the best of both worlds in an uncertain times.

4) Be sure you know land lord / tenant laws.  A lot of college students and parents aren't familiar with them, but you and your parents will be held accountable if you violate them.  Most states have their LL/T statutes online.  Find and study!

That's enough to think over for now.  Exciting times for sure!  I hope this helps.