International student trying to house hack in Hyde Park (!)

[Chaplin Huang]

Hello BP community,

I am an up-coming junior in University of Chicago and am looking to purchase my first rental property through house hacking in order to get in with a low down payment (also just to save money on renting for the next two years). I have been fascinated by this whole idea and really want to jump in (ofc! I will take my time and make a good decision). However, I do have a couple of questions, and any input form the community would be so so appreciated!

1. Seasonality of tenant’s demand outlook?

UChicago is mainly setting housing by year, so I am worried that if I purchase a place in between April and July it would be hard for me to find enough tenants (since students usually get their lease by May by my very limited experience). Does anyone have insight on that on what the demand will be starting summer?

2. International student (!) and loans

Yes, so I am an international student. I got so excited when I see the details of FHA loan, but the hype disappears when I realize that it's for U.S. citizens only. However, I am trying to look for other friendly loans. I was wondering if people have any recommendations for international student? Or even should I just find an American friend an co-sign?

3. Recommended Agent?

Last but not least, any recommended agents in hyde park?

P.S. I am currently preparing for required documents to see how much I can borrow based on my current amount of deposit.

Thanks!

[Ryan Thomson]

@Chaplin Huang I wish I was thinking like you in College! Here is an interesting idea. Use your knowledge and drive to convince your parents (or other co-signer) to get a home near your college. Co-sign with them and put some money down with them if you can.

Buy it as YOUR primary residence with your parents as the co-signers. This would allow you and your parents to only have to put 3.5-5% down. Then you rent out the rooms to your college friends. This will probably allow you to live for free and your parents to avoid a dorm or expensive home payment while you are in college. Not to mention you can both cash in on appreciation and loan paydown.

If you really wanted to scale, you could do this each year. Rent out the last house to a new group and move with your friends to the next house. This is a great way to scale and you only have to put 5% down if its your primary residence each time.

You obviously need to convince your parents or (someone who would co-sign and help with the downpayment) about how good of an idea this is. But if they are savvy money people and they trust you (which I bet the do), then this seems very doable. Maybe give them part of the equity or a monthly fee until you refinance and get their co-signing off the loan.