Buying a house to rent?

Question

I'm 19 and I want to buy a house in state college and rent out the rooms. Any tips or anyone want to help along the process?

Answer 1

Check your local laws to make sure you do not need to reside in the home for 12 months before you rent it.  There are many things to consider: you need to be up to code, if you have more than one renter most cities require you have a license to rent, you need a lease, you will be responsible if a renter gets injured in your home, if things break, etc.

Answer 2

First, non-owner-occupied properties require a 25% down payment and you probably don't have much cash on hand. Second, you probably don't have much of a credit history, so you don't have much of a credit score. And third, you probably don't have much income, if any at all. Those are pretty bleak prospects for getting someone to lend you money. Even if it's for renting out rooms, you can't show that as income, because it hasn't happened yet.

And, if someone were to partner with you, what do you bring to the table? You have nothing to offer, so why would anybody cut you in on the deal?

Here's a tip: Stay in school and/or get a good job. Don't spend to excess on toys, cars, or other lavish purchases that will tax your credit. Keep your credit record spotless. Eventually, you'll have enough cash, income, and credit rating to get a mortgage on a house. You can then rent out all the rooms you want.