Investing in College

[Kyle Marsh]

Should I invest in a rental property now, or wait until I graduate college? I am currently a Sophomore and would hope to invest in a rental property at the campus I attend in the Summer before my Junior year. I'd use an FHA loan and live in the property Junior year, then rent it out Senior year and on. I have enough money saved up for a downpayment and I would cosign with my Dad to qualify for the loan.

Here are my concerns:

-I live roughly an hour and 45 minutes from campus. While at school I would be near my property, but during the Summer and some breaks I will be away. 

-Once I graduate, my job could possibly take me far away from my rental property. 

-Will it be difficult managing an investment property for two years while I am still focusing on schoolwork?

I'd love to purchase this property and start building my portfolio early, but at the same time it also seems smart to just wait another 2-3 years when I know where I will be working and start then. I'd hate to wait because I have been learning about investing in rental properties for the past year and have saved up all my money with hopes to purchase one. Let me know what you think, any input is appreciated. Thank you.

[Andy Rousch]

@Kyle Marsh I agree with @Account Closed. Definitely if make the purchase if it makes sense. You will be able to get into a college rental at a low FHA 3.5% down cost. I would also check with property managers but in two years it may be different managers. I have a rental in a college town as well and the following tips have helped me:

Make sure that renters that are living with you (if you are renting by the room, etc) you have the parents sign the lease and run their credit, just like you would if they were the actual tenant event though their kids will be the tenants

Make sure you are ok with a decent amount of damage to the house since college kids (including myself when I was that age) can sometimes have big parties and accidentally make a mess. The upside is you don't need to have a perfectly nice rehabbed property with granite countertops etc. and if it's going to be multiple students in the house you will get a bigger rent amount than if it was just a single-family. 

If you have the opportunity I would go for it, you'll learn a ton while being in school and leave college with equity and an investment under your belt. Worst case scenario you just sell it