Investing in Colorado Springs

[Cameron Zobrist]

Hello,

I am an 18 year old and attend high school in WV. But, I will be attending the United States Air Force Academy in June of this year. Currently, I have about 4k in my bank account to use in investments. My current knowledge of real estate investment consists of several books I've read and a few discussions I've had with a real estate investor. 

With this information in mind, what would you suggest I do to continue? I would like to start investing now, but I also see the hazards that come with investing at such a young age while at USAFA. I am open to any opinion or suggestion. Thank you for helping a novice, want-to-be investor!

[Phillip Bicker]

@Cameron Zobrist Congratulations on getting into the AFA! 

I agree that it will be very hard to invest $4,000. However, I just confirmed this with my lender - being an AFA student, you are considered active military and would be qualified for a VA loan that can get you into a single family home with 0% down or even a multi-unit property. There are a few things I should mention: In order to qualify, you would need to have income enough to qualify and good credit. If you do not have enough income to qualify (which I would guess is the case with you being a student), you can use a co-signer IF they are also VA eligible.

Please remember that there are also closing costs and you should have a reserve saved if there are any necessary repairs down the road. Sometimes you can re-negotiate price to have the seller cover the closing costs, but this can be discussed further if you like. 

So the very best scenario would be to buy a multi-unit (duplex, triplex, 4plex) in the Springs with your VA benefits (likely with a VA co-signer), and you would essentially live for free or at least very cheaply by renting out the other units, while building equity in the property and gaining some great landlord experience.

My lender also has a 0 down program for an owner-occupied single family home (not mult-unit) if you have a co-signer but they are not VA eligible. This way, you would be spending about the same every month for housing, but would be spending this money on building your equity as compared to paying a landlord (and while realizing any additional appreciation on the property).

Of course all of this assumes that you would be living off-campus and at the property you are buying. It would be extremely difficult to come by any non owner-occupied loans where you would put down less than 20 or even 25% of the purchase price as downpayment. 

Hope this helps - let me know if you have any questions.