John and I initially connected through a real estate investment platform designed to link investors with agent partners who understand the needs of fellow investors. As a college freshman, John’s ambitious approach to real estate caught my attention, making me wish I could turn back time and emulate his forward-thinking mindset.
Unsurprisingly, John is pursuing his degree at Indiana University, majoring in Real Estate within the prestigious Kelley School of Business. When we first engaged in conversation, John shared his vision of acquiring a property within walking distance of the campus, featuring at least three bedrooms and two bathrooms. His plan? Renting out two rooms to roommates to optimize the investment.
Beyond his academic pursuits, John showcases exceptional analytical skills and a knack for making decisions that consider long-term benefits. Seeking my expertise, he aimed to identify a property where value could be added, and the rental income justified the purchase price.
As John prepares to move into his new home during his sophomore year, he’s implementing a savvy financial strategy known as “house hacking.” Securing a personal loan from his grandfather, John plans to pay it back with interest. His foresighted approach involves using the rental income from his roommates to cover the majority of his mortgage.
Looking ahead, John envisions enhancing the property’s value through strategic remodeling, kitchen updates, painting, and overall maintenance—a strategy often referred to as the BRRR method (Buy, Rehab, Rent, Refinance). Post-graduation from IU, John plans to continue renting out his property, ensuring it not only covers his mortgage but also generates monthly cash flow.
Collaborating with this young entrepreneur was a true honor. Guiding him through the home-buying process emphasized the importance of building wealth through knowledge, and I am confident John’s real estate journey is just the beginning of his successful entrepreneurial endeavors.