Possibility of house hacking while in college? Advice?

Question

Next school year, I’ll be attending Virginia Wesleyan University in Virginia Beach, VA. Curious if there's any advice as to how to go about the process of finding a property and whether it’d be possible to make it work or if it would be better to just live on campus. Not sure yet if I’m going to do it right away or wait for my sophomore year so that I’m able to build up more capital.

Aaron Howell · Answer

@Ethan Schultz you are onto something.  If you're paying rent for the next 3 years at least pay yourself and have your roommates help.  After 3 years, you'll have the equity on the plus side that you'd have thrown toward rent on the negative side.  Find a family member to partner with and hook up with an agent locally.  @Christopher Jason Lloyd may be still be local to you and can help.

Conner Olsen · Answer

See if your parents or a close family/friend is interested in getting a rental property. If they can qualify and afford it you can live in it, manage the property, and get a cut of rents to subsidize your payments. Cosign on an FHA loan and watch the equity grow!

Andrew Postell · Answer

@Ethan Schultz whenever you apply for a loan they analyze 3 things - income, credit, and assets.  Even if your credit is good, and you have assets...you'll still need income.  Ok, there are these "different" types of loan out there that don't need income - but your rate will be significantly higher and so will your downpayment requirement.  So, if you want a "traditional" mortgage (with the lowest downpayment and interest rate) you'll need those 3 things.  I purchased my first home, which I house hacked, while in college.  It is possible.  If you think you have those 3 things covered then go speak with a loan officer and see what they can qualify you for.  It should be free to do.

Christopher Jason Lloyd · Answer

Hey there!

I actually did a househack deal with a client that was a student at Virginia Wesleyan last year, haha!  She cosigned with her brother to aquire this.  There are a couple options and let me know if you would like me to get you in touch with a rockstar local lender.  He will be able to help out and look at all options at your disposal.

Jake Andronico · Answer

@Ethan Schultz

Smart thinking. I did this right after graduation and it completely changed my life.

I was fortunate enough to have some money saved from working in college but my parents co-signed which was instrumental.

There could be a potential arbitrage opportunity with renting by the room but in a college town a lot of landlords have likely already explored that option.

I'm on the West Coast in Reno, NV but happy to help and provide advice from my experience (I've house hacked twice).

Best of luck to you!!

Sean Hudgins · Answer

There are a lot of people that run student rental businesses in most college towns. You could try and find some that are in that business and see if you can be a live in manager for one of their properties for a discounted rental rate. This will allow you to learn the rental management business which will be a huge tool in the tool belt down the road.

Then when you have the 3 lending areas covered that Andrew mentioned, you could look to acquire a property on your own or if you have built a great rapport with the student rental landlord you could see if they would be open to partnering. I'm in the VB area if you want to connect, I don't own student rentals myself but I know a couple of people who do own some in Norfolk/VB.

Ryan Thomson · Answer

Good thinking!!

House Hacking is amazing. Here are some resources I found really helpful on my journey:

1. For podcasts I really like the House Hacking episodes on Bigger Pockets Podcast and other channels. Here is a playlist with the best House Hacking Podcasts I’ve found: https://open.spotify.com/playlist/4A6uLsPfdWEMmJhG4TSjyb?si=743bb403548f47fb

2. Great beginners guide: https://www.biggerpockets.com/blog/wp-content/uploads/2022/08/Ultimate_Beginners_Guide_BiggerPockets.pdf

3. The Book on House Hacking Strategies by Bigger Pockets is also a fantastic book

4. Happy to talk if you want more advice

5. Connect with a realtor who understands house hacking and has invested themselves

6. Connect with a lender to see what you qualify for and how you can improve that situation

7. Go to local Real Estate meetups and learn from people there

Benjamin Sulka · Answer

What Andrew said.

It would be hard to get a traditional loan without W2 income history. They typically ask for two years of documents.

Keep saving up your money! If you're going to save, consider putting it in a high yield savings account with solid terms. Check out Wealthfront.

All the best!

Possibility of house hacking while in college? Advice?

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