Hey @Noah Henderson , love the mindset and ambition!
Your biggest hurdles will not be your age and inexperience. Both of those will grow with time, as long as you keep up the ambition and are willing to learn, which it sounds like you are!
The bigger hurdles will be finances, networking, and education. Right now you can control two of those (networking & education). By finding BP, you can build on both of those pretty easily, you just have to dedicate the time to do so. Finances are the tougher one, you either have to spend less or make more. Sounds like you're already setting aside $16k / year, which is huge at the age of 18, kudos to you! Keep that up.
Keep an eye on your finances, learn about budgeting, credit cards, profit and loss statements, etc. Learn as much as you can about finances and how to manage them. Network with people that know a lot about it, take them out to coffee and pick their brains for an hour. Listen to podcasts. Read books. Learn different methods of thinking about money (Rich Dad, Poor Dad book).
When you're ready to jump into buying a place, I highly recommend a duplex, triplex or fourplex. Live in one, rent out the others. This will save you money on cost of living, ideally by having the other units pay for your living expenses. This means you can save more money, ultimately putting more money back into your investment goals.
Hopefully this helps! I'm sure you'll get a lot of others responding here with tons of other great ideas. Message me if you want to chat more!
Congrats @Noah Henderson . I started in IT 20 yrs ago, funny how the starting salary hasn't changed much but congrats! Wish I would have had your insight back then. 1 unit or 4 units, your goal seems to be cash flow and acquiring enough to give you options in 5 yrs. Next step is decide how much cash flow you want per unit (I shoot for $100 after all expenses) and look from there. I would also look at bringing on partners (parents, family, etc). They can provide the capital & possible credit you need to acquire more cash flowing units before you think its feasible. I also recommend to start talking with banks, not 1 but several. Let them know of your interest and what are things you need to focus on now so that when you bring a deal to them, y'all can do business.
Looks like you have a good start, now to just focus on the drills and tactics to take you to the next level: (1)start talking to everyone you know about REI (in hopes that everyone will be your partner on a future deal) and (2) talk to banks. Good luck!
Great feedback! Thanks
@Noah Henderson I’d say buy at least one property this year and then two next year and then 4 the year after that. That’s a good way to build quickly.
Don’t forget to account for closing costs when figuring how much money you’ll need. Typically it’s 3-5k per residential transaction
Start with househacking. Get your foot in the door and just gain as much experience as you can. Buy 2-4 units with an owner occupy loan and start saving even more money!
My advice is to surround yourself with like minded people to speed up your investment goals. #1 is if and when your ready for a girl or boy friend, find a partner that will be on the Same Page
Good for you for wanting to get started early on. You'll be surprised how much of an impact starting early will have on your long term financial goals. Definitely be open to moving often to take advantage of owner-occupied financing.
House hack. Find new like minded friends, preferable those with money. Don't get married. Investing is not a race. If you can achieve true financial freedom in 20 years that is more than fast enough.
Change your mind set on your employment, it is the easiest source of money available and will continue to be long into the future. Employment is nothing more than a means to an end. Keep it as long as you possibly can without it interfering with your investing growth. Not having a job will effect your ability to access financing, it is a valuable tool.
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