Should a High School Student Buy an 8-Unit Property? Here's What You Need to Know

[Robert Ellis]

"Ever thought about diving into real estate investing while still in high school? A viewer asked about buying an 8-unit property in Memphis, Tennessee, priced at $560,000, with rents estimated at $6,400 a month. It sounds like a solid deal, but there’s much more to consider before taking on significant debt.

Here’s my advice for anyone new to real estate investing, especially young investors:

1. Properly Vet the Deal: Ensure the numbers are accurate. Verify the purchase price, potential rental income, and operating costs to determine whether it’s truly profitable.
2. Understand Debt: Taking on $500,000+ in debt is a serious commitment. Make sure you’re clear on how financing works and what your monthly payments will look like.
3. Property Condition: Assess the age of the property, maintenance history, and any potential repairs or upgrades that might be needed.
4. Due Diligence: Work with professionals, like a home inspector and a trusted real estate agent, to ensure the property is sound and fits your investment goals.
5. Analyze the Neighborhood: The location can make or break your investment. Look into property values, vacancy rates, and the overall rental market in the area.

Real estate can be a powerful way to build wealth, but it’s essential to start with the right tools and knowledge. Whether you’re a high school student or a seasoned investor, understanding the fundamentals is key.

Contact Information:
Rob Ellis
Pink Development and Construction, LLC
City of Columbus General Contractor: #G09302

614-400-8762

[email protected]

PO Box 12128, Miami, FL 33101