College student buying first rental property

[Anthony L.]

Hi,

My partner and I are both in our second year of college. We found a pretty decent starter house that we are very interested in. It is a duplex with nice tenants and a lot of important things replaced within the past few years so it won't be needing a lot of repairs. The owner is offering 12% APR on our financing. I know it's a crazy rate but I do understand that not a lot of people would hand over money to 2 19 year old kids with no credit. We don't really need money in college so we aren't taking any profits in order to pay the mortgage off in 5 years time. I have all the calculations in place to have all the necassary payments such as mortgage, taxes, insurance, management company, and water. We will have a very little left at the end of each month in case of required maintenance or vacancies.

I am looking for any other general advice anyone can give me as to what to look out for because this is very big responsibility and weight being put on my shoulders if I go along with this. We are both basically putting ourselves in huge debt without jobs for the next 3 years. We have ran a business in the past to have a small income but nothing that can really help aid the payments of a house.

Thanks