All Forum Posts by: Anthony L.

Okay, I will continue to look for another property with a lower interest rate. My real purpose of the thread was to see if I am on the right track though and advice on things I should be looking out for to tell if the investment is good or not. Also does concept of building wealth rather than looking for immediate profit sound realistic or am I overlooking something. 

1. It will not require any more work than I am comfortable handling. I do not have a job now but I would like to get a small part time job regardless.

2. It is basically exactly what you said which is why I am not terribly worried. It's 30 years but we want to pay it off in 5. That was our goal and I do have 5 summer, and half school year internships that pay about 12k each one so I can pay bulk if needed. 

3. It's owner financed. If it comes down to my parents. Yes they could give me a loan to pay for the whole house but I am not even telling them I am doing this. It is solely on me.

4. I don't have any student loans. My parents pay for my college in full and all living expenses until I graduate. This is why I want to take advantage of the opportunity while I have it.

5. This area has small extremely cheap houses. That's why I am trying to buy some as starters. It will cost $50k. 2 units combined bring in $1295 a month, tenants pay utilities. Taxes are about $2200 a year, and you have general other expenses like insurance, water, and management.

The point of doing this is to build wealth. I'm in college so I don't need money for the next few years. Even if I break even every month, I am putting almost nothing down on the house so by the time I graduate I will have that income plus the asset if I want to sell. I plan on finding a lot of these with putting very little down and just breaking even or making even a little just to build up the wealth since I don't need even a pen of profit while I'm here in college.

Hi,

My partner and I are both in our second year of college. We found a pretty decent starter house that we are very interested in. It is a duplex with nice tenants and a lot of important things replaced within the past few years so it won't be needing a lot of repairs. The owner is offering 12% APR on our financing. I know it's a crazy rate but I do understand that not a lot of people would hand over money to 2 19 year old kids with no credit. We don't really need money in college so we aren't taking any profits in order to pay the mortgage off in 5 years time. I have all the calculations in place to have all the necassary payments such as mortgage, taxes, insurance, management company, and water. We will have a very little left at the end of each month in case of required maintenance or vacancies.

I am looking for any other general advice anyone can give me as to what to look out for because this is very big responsibility and weight being put on my shoulders if I go along with this. We are both basically putting ourselves in huge debt without jobs for the next 3 years. We have ran a business in the past to have a small income but nothing that can really help aid the payments of a house.

Thanks

@Christopher Schmidt

Hi, my name is A.J. I am from NYC but will be residing in Rochester, NY for the next few years. I am a freshman in college majoring in engineering. I have been running a few small businesses I founded in high school and do pretty well. From the business I own I have a lot of money to put down on investment properties. I would like to go into this with a partner that has been working with me for years. He is a business major also a freshman in college. He is in Miami so I view the scenario as an opportunity to expand the asset locations. My parents own multiple investment properties in NYC and being their oldest son I have always helped them manage them so I have some experience being a landlord. What I would like to do is more of a property owning business and hire a management company right off the bat. This is just my quick intro. I have many questions before diving into this stuff so hopefully you guys can help me along the way.