House Hacking w/ Medical School?

Question

Hi all! I am new to real estate investing and have listened to about 24 episodes of the Bigger Pockets Podcast now. I recently graduated from college with a biochemistry degree and am working as an EMT in North Atlanta with the hope of getting into medical school.

I believe my first investment will be a duplex or a triplex. This will be in whichever city I get into medical school next August 2021. I currently have a steady source of income from working multiple jobs and am living at home to continue saving money. Josh and Brandon have talked about it being much easier to get a loan while I have an income. I have two questions: 1) Based on limited time availability, is this type of house hacking a good first investment? 2) If so, would it be advantageous to seek out a possible FHA and 203k loan before I stop working (to enter school)? I would also have to take out a loan for schooling and some living expenses. Thanks!

Best, Brennan

Account Closed · Answer

I think this is the perfect time for you to ask yourself what you are trying to get out of your life/career? If you are after financial freedom and freedom of time, is spending hundreds of thousands of dollars and years of your prime time going to medical school really going to give you that?? I think if you are truly interested in real estate and investing then it will be much better for you in the long run to spend that time and money on real estate right now rather than med school. You will be able to propel your life forward rather than drown yourself in debt and even after becoming a successful medial professional, I doubt you will have the type of freedom of time that you can achieve with real estate.

Francis Sirch · Answer

Brennan,

I carried out your exact plan. I am currently a 4th-year medical student. I had worked in medical device sales prior to my acceptance to medical school and purchased the property 6 months prior to my entry into school. I did a 203K loan with 75K purchase price and 100K repairs for a total loan of ~180K. I would say it is a good investment if the numbers work. Unless your family is super well off you will have to take out loans for medical school. My plan is while I have been in school the property will appreciate and I get about 1k cash per month ( I have deferred Capex because everything is new). I initially lived in the property for the first 6 months then moved, and use the cash to offset rent expense/living costs. It is likely you will be unable to find a property in the optimal location, I would not hesitate to consider investing in a property in close proximity but not directly near the medical school so you can get a property before you no longer have verified income for a traditional loan.

Short answer: Go for it while you have the income to get the loan as long as the numbers work, however, don't buy something that is not profitable just to buy something.

Jonny H. · Answer

Just wandered across this thread! Brandon, how did this work out for you? I'm thinking of doing the same thing, but I have a few other hurdles: I'm already in med school (2nd year), so no income. Also, I have a family, so I'll need a bigger place, preferably a 4-plex. Anyway, curious as to how this worked out for you and if you'd recommend it.

Brennan Bogdanovich · Answer

Hi Mehul!

I appreciate the big picture advice! The medical school loans are definitely not ideal and being able to invest and appreciate wealth versus acquiring hefty amounts of debt is a seemingly easy choice. Yet, I do have a deep appreciation for science and serving others.I will keep this advice handy, and regardless, real estate is something I would like to continue to pursue and help maybe offset some of the debt.

Best,

Brennan

Brennan Bogdanovich · Answer

Hi Francis,

This is great advice! I appreciate the help. I will definitely make sure if accepted to a school, that I purchase the property while I still have income. Did you look into an FHA loan? Or was the property too far away from school to where you didn't want that to be your primary residence?

Lastly, any first-hand experience advice you might have on the 203K loan? I still definitely need to do more research there.

Thanks!Brennan

House Hacking w/ Medical School?

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