Sep 20, 2009
31
0
Status
Pre-Dental
Currently I'm 20 and in my 3rd year of college. Chances are I'm either applying to dental school or medical school. Of course, some private loans are needed. Currently I have zero credit card debt but then again its only been about a +year and I pay off my cards before every statement. So I do have some understanding of the whole credit card scene and interest rates.

I have no debt, my car is payed off and along with most of my schooling (I only have 3k in loans, maybe another 3k if I study abroad for one summer session).


Can I ask for a bit extra in student loans if I were to apply to dental/medical school to buy properties? Say I apply to buffalo, I can realistically buy 1-2 houses with about 60-80k Obviously one is for me and the other I would rent out during my 4 years in school.


Can I actually do this? Is there something that would stop me?
 

amakhosidlo

Accepted
10+ Year Member
Feb 13, 2008
946
10
Status
Medical Student
...other than the fact that you have no collateral, no income, a short credit history by most metrics, and schools set hard and fast COA's... No. Nothing is stopping you from investing in properties that will most likely never rise in value which you'll have a hard time getting out of, and will probably never return the 5-6% you'd need to maintain/break even on your investment.

Your ambition is admirable, but real estate as a fixed income generator is dead. Well, maybe not dead, but generally inferior to other investment vehicles. If you really want to try your luck, ask for your full COA, subsist on half your living allowance, and throw the rest into domestic stocks, emerging market ETF's and high-yield bond funds. Beat the 6.8% and use the proceeds to reduce your loan burden. Smart, low risk (well, objectively risky, but if you lose out you're only out the amount you'd be wasting living more comfortably, and you avoid the liability you'd have being tied in in property)
 

chinocochino

7+ Year Member
Sep 12, 2009
913
10
Status
Resident [Any Field]
Your post made me so happy. There are too many people that say, "The stock market is evil and you WILL lose your invested money--put all your money into certificates of deposit." (They are indirectly saying that they can time the market)

Have you maxed out your ROTH IRA's? You won't be in this ideal tax situation forever; you can't squirrel money away into ROTH IRA's as an attending physician. Well, if you CAN put money into ROTH IRA's then you aren't making much!

Also, you could only hypothetically buy the properties if the COA was high enough. It wouldn't work out because you would be trying to get into a school with high tuition instead of a cheaper option.

...other than the fact that you have no collateral, no income, a short credit history by most metrics, and schools set hard and fast COA's... No. Nothing is stopping you from investing in properties that will most likely never rise in value which you'll have a hard time getting out of, and will probably never return the 5-6% you'd need to maintain/break even on your investment.

Your ambition is admirable, but real estate as a fixed income generator is dead. Well, maybe not dead, but generally inferior to other investment vehicles. If you really want to try your luck, ask for your full COA, subsist on half your living allowance, and throw the rest into domestic stocks, emerging market ETF's and high-yield bond funds. Beat the 6.8% and use the proceeds to reduce your loan burden. Smart, low risk (well, objectively risky, but if you lose out you're only out the amount you'd be wasting living more comfortably, and you avoid the liability you'd have being tied in in property)
 

DrYoda

Space Cowboy
10+ Year Member
Jun 22, 2008
13,817
110
Dagobah System
Status
Attending Physician
Is there something that would stop me?
Even though you have no debt, banks aren't going to look at you as credit worthy because you have no income and no collateral.

Also, stafford and grad plus loans (the kind you get from the school) are capped at the COA. You can't just ask them for more.