College Student

[Steven Paul]

I am very interested in real estate, it could be buying and selling vacant land, renal properties, anything of that nature and i was wondering as a college student what is the most profitable avenue to go down for investing, my available capital is around $4000

[James Ackerson]

@Steven Paul thats awesome you're already thinking about Real Estate investing! 

In my opinion - I think these are some good options. (some already mentioned already)

1) Use your $4,000 as a down payment with an FHA loan on a small multifamily (2-4 unit) and rent out the other units. Or a single family, and rent out the bedrooms to a couple friends during the school year. When you graduate, you can sell and recapture any equity you've built up, or continue to hold as a rental.

2) Research FHA 203k loans. If you have the time for it this summer, using an FHA 203k loan could help you buy and fix-up an older home. If done right, the home could be worth more than what you've put in, and you'll have some equity when you sell. During the school year, get a couple of roommates to help cover your mortgage expenses.

3) Go intern or work this summer for a property manager, developer, real estate office, apartment complex, etc. Spend some time learning a little about the business, and make a little extra $ to help you start your investing. 

4) Talk with mom/dad about partnering on a rental - and show them how you can save money by paying off a mortgage instead of paying the high cost of student housing. 

- If your having trouble finding a rental around campus, consider expanding your search to other areas around town you'd consider living. Call a couple real estate agents, and see if they can help. If your considering being an owner-occupant, you may have an advantage when buying something like a HUD home, as owner-occupants are often given the first 5-10 days to purchase before investors.

- See who is around you that is willing to help you out and be support. I think investing is great, but can be risky, especially for those just getting started - so make sure your not the only one looking at these deals. 

Best of Luck!