First Investment

[Josh Tonnesen]

Hello,

I am currently a Junior in college, who makes roughly 10k a year through part time and summer work.  I have gotten interested in investing my money into real estate, since my student loans are not accruing interest for another 2 years.  My school is pretty cheap, and my expenses are low so I figure that it would make sense to put that into an investment property.  I have done research and have come up with a house that I would appreciate input on.

The house is older, but it has no structural issues (floors and walls are all level).  There is no stove, washer, dryer, refrigerator, and the roof leaks.  I understand that that really lowers my availability for obtaining loans, but I am currently looking through lender options.  I just want to hear some feedback on this.  

I am having a roofer come through next week to give me an estimate on the roof repair/replacement.

The house is listed at 25000

I assume there will be 8-12k in repairs

I estimate the ESP to be 45k

The way that I anticipate to make the money back is through holding the property.  The city that I live in is a low income environment, so the houses are going cheap, but it is a college town so the rent is high.  I have a group that could move in after the repairs are done, which I anticipate would be in August.  

I know I could get 800 a month in rent (1.78% of ESP)

The crime is low in this area, comparing it to the other parts of the city, and it is across the street from an elementary school.

I am curious as to if investors think that this is a good idea, since I am still in school and will have loans after college, but they are not substantial (20k total).  Also, if people would recommend wholesaling for starting investors, or if going into a potential good deal would be a smart move to understand the process.

I would appreciate any feedback, Thanks.