Using tuition for first time rental purchase

[Victor Ruisenuso]

I am a L1 law student in Minneapolis and I took out a bunch of loans this year thinking I would quit my job while I’m in law school (stupid financial decision, I know). After further analysis, I decided to adjust my hours, keep my job and take out minimal loans. However, it’s too late to return the loans that were designated for living expenses. Now I have about $30k in cash and about $1,300 a month to use for rent. I’ve always planned to invest in a rental property and get my real estate portfolio going and the sooner the better right? I called the school and they said that after the money is disbursed nobody audits it so it sounds like it’s much fine to use as I see fit. (Is this true?)

So I’d like to put this down on a rental property as a live in first time home buyer, but I have a ton of questions.

1. This market; is it smart or safe to buy when it’s so hot? Isn’t it better to wait and keep saving until this bubble bursts unless I see a really good deal?

2. Minneapolis; crime is still on the rise here and while I am empathetic to the cause that’s initiated allot of the energy in the city, I also can see clear capital flight from major businesses and there appear to be many homes in uptown and around Minneapolis that are listed but not selling, are investors fleeing and is it wise to invest here still?