Buying a house in college

This is the summary ….

1.  Searched Craigslist for home sellers willing to sell their house on a land contract and eventually found one that made financial sense (see below for details on land contracts).

2.  Borrowed $5,000 from my parents and used $10,000 that I had saved up as a down payment.  The sale price was $54,000 so the remaining $39,000 was on the land contract.

3.  Since the interest rate on the land contract was 7%, I paid it off as soon as possible using student loans (see below for issues relating to using student loans as a down payment or for paying off real estate purchases).

4.  Found a renter (also using Craigslist) who rented the house for $950 / month.  The $950 covered the land contract payment, property tax, insurance, and the payments on the loan from my parents.

If you are a college student and interested in purchasing real estate, please check out my full guide to Buying a House as a College Student.

 

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