• Two college students bought undeveloped land in rural Virginia, hoping to build a luxury retreat.
• The two friends from high school reconnected in college and decided to start the venture together.
• Graduating in May, they plan to open their first cabin in July.

This as-told-to essay is based on a conversation with Rajan Chidambaram and Renzo Sanio, two college students at the University of Virginia (UVA) and Virginia Polytechnic Institute and State University. The two 22-year-old friends who met in high school are set to graduate in May. In July, they plan to open Royal Oak Retreat, a luxury cabin in Front Royal, Virginia, a rural town about 70 miles outside Washington, DC. The conversation has been edited for length and clarity.

Renzo: I've always been told when you're young, it's the best time to take risks. I was just waiting for the right opportunity to find a development deal that I could partake in.

I went to college, studying physics, and eventually added Building Construction as my second major — but it didn't seem creative enough. So, I added Real Estate as a second major in my sophomore year. I was excited because you can see the whole development process from the start.

Rajan: Renzo and I actually reconnected in Texas. I was working in Dallas and visiting another friend in Austin. Renzo just happened to be there. That's where I first got introduced to real-estate development. Now, I'm majoring in IT and Real Estate.

Renzo: I was working in a commercial-development internship in Austin. I shared the idea to buy investment land with Rajan while he was working at JP Morgan in Dallas, and that was, in a way, the start of our partnership.

We wanted to diversify our investments with real estate

Rajan: I've been selling shoes for a very long time, and I saved up a lot of money over the last five years. I wanted to park some of it in real estate. The inspiration to get into real estate came from my dad who suggested I look into it. I already had a lot of money in the stock market, so I wanted to diversify a little bit.

I bought a property on my 21st birthday. It was a single-family townhouse for $295,000, about five minutes away from UVA, so it's holding its value very well. I rented it out to a family that lives there.

Renzo: There was a 24-year-old in Texas who built a retreat for $2.5 million and then sold it two years later for $7 million. And I thought that if I could do a very similar thing, just in a market closer to where my home was, we would exceed.

Rajan: Renzo brought me this deal. He's the one who found it, he's the one who sourced it, he's the one who did the research, and he just brought me along.

My dad started his own company, and before I even explained it, he was like, "Just go do it." I'm very grateful that he had full faith in me to do my own thing.

We think we can make $100,000 per cabin a year

Renzo: Our property is 2.5 acres in Front Royal, Virginia. We got it under contract for $37,000 right after Thanksgiving 2024. We bought it free and clear.

Rajan: We closed on January 10. We've started clearing the land but have not started putting the foundation in yet.

Renzo: The 2.5 acres are subdivided into four parcels, and the end goal is to have four luxury cabins.

I bought the plans for the cabins for $2,000, probably six months before we bought the land. I had to buy them to know how much it would cost to build them, which would be used in our financial model.

We're using a $300,000 construction loan to build the first cabin, which kind of maxes out our financial capacity. Our finances are limiting us in that sense, so we're going to build the remaining three in phases.

We definitely needed cosigners for the loans — some conversations with parents and easing their concerns opened up the possibility for us to see this through.

Once we get full-time roles, our capacity for debt should increase. So, we might consider building all three at the same time.

Our financial model projects $100,000 in revenue per cabin annually. While $100,000 looks sexy, hospitality is expensive to operate.

We discovered Front Royal is one of Virginia's strongest short-term rental markets because it's so close to DC — it's only one hour away.

As for the market side, the downturns aren't really a concern. If the market dips and people find themselves in unfavorable financial situations, we expect that in-state travel will increase, which will benefit us.

Rajan: We expect to be fully hands-on. This is not an investment; this is a business that we're starting.

And I think it starts with the marketing. That's why I'm really pushing content out on my page. We also have a branded page for Royal Oak Retreat, and the whole point behind that is by the time we open, I want to build up our personal brand so big that when we open, we have a direct bookings funnel.

We don't want to rely on Airbnb or Vrbo because they take a percentage of what we would charge. We want to have our own direct booking site.

I think by the time we open, people are going to be so bought into our story. If you want to book out for a whole year, that's only 365 people, and right now, we have 47,000 people following our journey.

• Ila Corcoran lived in California but bought a four-bedroom home in Texas where prices were lower.
• She's a house hacker, living in one bedroom while renting out the others to cover her monthly costs.
• In 2024, she bought a second property using the rental income she earned from her primary residence.

This as-told-to essay is based on a conversation with Ila Corcoran, 26, who purchased her first home in 2021 and used the income from renting out its rooms to help buy a second property in 2024. The interview has been edited for length and clarity.

When I was 18, I earned my real-estate license and later became a property manager at an apartment complex in Los Angeles. I lived in a one-bedroom, one-bathroom unit valued at $2,300 a month, but my rent was covered as part of my salaried role.

I used the money I saved by not paying rent to build up a down payment so I could invest in real estate. At 22, I started house hacking by buying properties and renting out rooms in them.

In March 2021, I bought my first home for $250,000 in Forney, Texas, a suburb of Dallas. I used a Federal Housing Administration mortgage, or FHA loan, because it made the purchase more affordable. I put 3.5% down on the home and secured a 2.8% interest rate on a 30-year fixed mortgage.

I eventually moved to Texas to live in the home — since FHA loans require the home to be your primary residence — and began renting out the extra rooms. I've earned a total of $110,000 in rental income over the past four years. However, I do have property taxes to pay and a homeowners association, or HOA, fee of about $400 a year.

In January 2024, I bought my second property. It's a two-bedroom, two-bath, 1,300-square-foot home in Tulsa, Oklahoma.

I got it for $190,000 with a 10% down payment, a 6.5% interest rate, and a seller-financed 10-year mortgage. The HOA fees for this home are $250 per month, and I'm unsure of the exact property-tax bill since I've owned the home for just under a year. I rent out the entire house to a single tenant for $1,500 a month and have earned $25,000 so far before expenses.

I use the money I make from renters primarily to cover the mortgages and utilities for my homes. Any extra income goes toward building my fintech company, BySengo, which helps founders seeking funding connect with investors interested in private businesses across the beauty, fashion, wine, and hospitality industries.

In the long term, I'll put the rental income profits into investing in more real estate.

I had to leave California to afford to buy a home

I decided to buy property outside Los Angeles because I knew I could more easily afford homeownership elsewhere.

Although I had never been to the Dallas area, I chose it for its population growth, emerging communities, and affordability. It also stood out because it had a high proportion of renters compared to homeowners, which made it seem like an easier market for renting out property.

I found my property through a real-estate agent. It was a new construction home that had yet to be built.

In October 2020, I flew to Dallas to visit the site. During the trip, I put down a $1,500 deposit to reserve the land. In March 2021, I closed on the home, bringing about $9,000 to the table.

I split my time between California and Texas, traveling back and forth from March 2021 until I officially moved in September 2024. It was difficult leaving my home state, but I realized this was what it took to build wealth, and I was ready to make it happen.

The home is two stories and has four bedrooms, which are all occupied. Over time, I've had about seven different roommates. At the moment, I'm charging $1,000 a month for the primary bedroom and $900 for the downstairs bedroom. I'm not charging rent for the fourth room, as my best friend, who recently moved from California, is staying with me while she gets settled. I've previously charged $750 for that room.

Living with roommates isn't always smooth sailing

I found most of my roommates through the app Roomster, which helps people find rentable rooms or lease out their homes, and I have also used Facebook groups.

I screen all my roommates and have them sign individual leases. Most leases are for six months to a year, after which they can become month-to-month. My renters can stay as long as we both agree, but we need to give notice if either party wants to terminate early, with no fees involved.

For my contracts, I've drawn from my experience as a property manager in California and tenant law. I've also consulted with local lawyers who've reviewed my documents and given me recommendations.

Things aren't always perfect with roommates. I've definitely faced my share of challenges. For example, one roommate might complain about another, saying things like, "I don't like when they do this" or "It bothers me when they do that." It's definitely something I deal with on an ongoing basis.

Communication is key in situations like these. It's all about establishing boundaries, talking things through, and letting people come to me privately to make sure everyone feels heard. I'm not easily angered, so having patience really helps.

I used a seller-financed mortgage to buy my second home

I chose to buy my second home in Tulsa because I learned about Black Wall Street and its historical significance in the city.

I also came across a YouTube video discussing up-and-coming cities. Because of its municipal bonds, government investment, and corporate interest, Tulsa was mentioned as a city on the rise.

There were many benefits to purchasing the home with seller financing. The process was similar to a traditional closing. The key difference is that I make my payments directly to the seller, who holds the lien, rather than a bank. If I fail to make my payments, the seller has the right to foreclose.

I chose this route because I am self-employed, which can make it harder to get a traditional mortgage. Seller financing allowed me to avoid the long documentation process and had fewer requirements. I was also able to put down less money and avoid private mortgage insurance.

The home seller benefited because they didn't have to pay taxes on the entire lump sum from the sale at once. Instead, by receiving monthly payments, they spread out the income and pay taxes gradually. This lowers their tax liability each year, allowing them to keep more of the money.

I am proud of myself of investing in real estate so young

When I bought my first home, everyone told me not to do it. They said prices were too high, and I was overpaying. They suggested I wait until rates went up and the market cooled down. But I'm glad I didn't listen.

There's always going to be a "better deal" or a "better time," but if you let that hold you back, your opportunity cost becomes even greater. All the time spent deliberating on the best possible outcome can prevent you from even starting and achieving anything.

I do think people should be cautious but also take the risk of investing in themselves.

I know real-estate investing isn't for everyone, but as a Black woman, I feel like I'm helping to address some of the inequality in homeownership in America — particularly the disparity between Black landowners and non-landowners.

Investing in real estate and house hacking has also been incredibly beneficial for me. Without the equity from my real-estate investments, I wouldn't have built much of a net worth — at least not as quickly.

I've had my family's support, but I've done this financially on my own. Honestly, I feel great about it.

I still have goals of getting married, having a family, and becoming a wife and mother — goals women are often encouraged to prioritize. But by pursuing real estate on my own, I feel more confident about dating and marriage because I already have a strong foundation and feel established.