Real estate investing while in grad school
Hi! I'm James. This is my first post on BP!! I'm in grad school In Seattle and working full time to pay my way through.
I'm brand new to real estate investing. Just finished Rich Dad Poor Dad and totally changed my thinking. Since then I've been contemplating investing in single family 3bd 2bth for a rental where I have family in Bemidji, MN since it's so expensive to get started here in Seattle. Biggest obstacle is finding the capital since my budget is fairly tight being in school.
Also, Been thinking about taking out a school loan and investing my money in a higher return investment. School loan would be 6%. Just wanted to introduce myself and get some thoughts on these two things. Excited to be a part of this community! Thanks so much! Blessings
Most Popular Reply
James,
Welcome to the community. going from 0 to 1 is always the hardest step in an investor's path. As far as Bemidji is concerned, are you looking there only because you have family there or does it also offer good returns?
Whenever I speak with someone new, I always tell them to get plugged in to their local REIA, even if they are not going to invest locally. You are bound to find someone that has had a similar path to you and someone you can emulate.
I would advise against a school loan for financing these types of purchases. If for some terrible reason, your deal goes bad, and the worst-case scenarios start happening, there is no relief from student loan debt.
My personal coarse of action would be to do one or both of the following:
1. Find someone in the Seattle area that can afford to purchase in the area and bring him deals in return for a share of the equity.
2. Find a market you can afford now, and start from there..
BTW, is house hacking a realistic option for you?