Question
is it possible to buy a (run down) house which i would renovate for either sale or rental as a student?
Thanks for taking the time to answer. I am a 19 year old student (England) who is currently at university studying biomedical science. however i was wondering if it was at all possible to attain my dream of buying a rundown house on the cheap (say at a auction) and fixing it up to a reasonably high standard for either quick turnover or to rent. ultimately i would like to do this as a business. so basically my question is to whether there are any 'buy to rent' mortgages or something that will allow me to do this without immediate capital.
6 months ago - 1 answers
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Well, number one, it is possible to buy a house for cheap and fix it up for profit, even as a student assuming you're finance-able. Right now though it's basically impossible to finance a house without ANY capital. You should expect to have at least 10% down. It's not unheard of in some areas to buy foreclosed houses for 20k that aren't that bad off. That's only 2k down... Maybe you could find an investor. Also, don't forget there's a new tax law that gives you 10% of the purchase price of a house back in your next years income tax return (up to $8500 I think). Without an investor, you would likely need to finance it, which can't be done if you don't have any source of income other than expected rent. Mortgage companies typically don't allow you to use rent as income -- often even in homes that you've owned already with existing tenants. So... your best bet if you don't have a job, is to get an investor or get a job. Oh, and don't buy a house at auction, people usually get emotionally invested and spend to much. Get a realtor who knows what you're looking for (foreclosures) and respects your wishes and budget.
Source(s)
I'm a 24 year old, full time student and closed on my first house in January. (I work full time too though).
6 months ago
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