Editor’s Note: Some time back, I posted a guest article about becoming a student landlord. I have heard of someone in my school doing it, but it was mainly with seed money from parents. I didn’t really think there existed students who would be responsible enough to raise the funds by themselves, deal with the issues associated with becoming a landlord, and top it off by saving their earnings diligently. Until I read Ginger’s frugal students blog that is! Ginger and her husband (who is also a student) have an incredible story of owning income property with a positive cash flow, bought from their savings, while they are still in school. Ginger was kind enough to share her story here. I hope you feel as inspired as I did to read it! (Note: If you have an inspiring story to share, feel free to contact us, so we can feature you in one of our future stories).
Handing it over to Ginger now…
Buying any residential property can be frustrating and difficult but when you are buying for more than one reason, it can be even more so. My DH and I bought a duplex in December of 2009. We had not planned to buy it so soon, in fact we had debt we wanted to pay off before buying a property but the first home buyers tax credit made us decide to buy.
The Decision to Buy, And Raising the Money
We had just moved from San Jose, California to Buffalo, NY during August of 2009 for my DH to go to graduate school. During my college years I had put money aside in both a Roth IRA and a traditional IRA for my first house. All together I had saved about $7000. During my last year of college I was eligible for subsidized student loans and took out the max amount of $5500 for the year. [Read more…]