Starting out as broke college adults

Riverside, California
Starting Out
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Starting out as broke college adults

Dominik Geib
New to Real Estate · CA · Member since 2023 · 6 posts · 6 votes

I hope everyone is doing well! I appreciate you all for taking the time to read this message—I know your time is valuable, and I’ll keep this short.

A bit of background: I’m getting married this December to my wonderful fiancée, we are 23 and 21. My fiancee is a college student and will be graduating in April of ‘26, she has had summer jobs and we both have been working towards this moment. I’ve started a couple side hustles as well. That said, we’re trying to make smart financial decisions as we prepare for life together—starting without a lot, but with a lot of drive and responsibility.

I had a few questions I was hoping to get your perspective on:

1. Buy vs. Rent – We've been looking at apartments and ADU properties, and surprisingly, some rents are higher than monthly mortgage costs. Do you think buying makes more sense than renting in today's market, especially for a young couple?

2. Requirements for Buying a Home – We don’t have a traditional two-year work history or a large down payment. What are the key requirements we’d need to meet to even be considered for a home purchase?

3. Is It Realistic for Us to Buy? – Are there viable opportunities or programs out there for couples like us? Or would it be more realistic to rent for now and revisit buying later?

4. Loan Options – Are there any specific loan programs (like FHA or first-time buyer loans) that might be better suited to our situation?

Again, thank you so much for your time and advice. I value your perspective and appreciate anything you’re willing to share.

Best regards,

Dominik

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Jim K.
Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
1y

Hi, Dominik.

Books have been written about your situation. Really good books. If I were you, the place to start would be a book written by the CEO of this website. His name is Scott Trench, and the book's name is Set for Life: An All-Out Approach to Early Financial Freedom.

Here are my short answers to your four questions which the book talks about in full.

1. If you can buy RIGHT, it always makes sense to buy. If you can only buy WRONG, paying off the property will keep you house poor and unable to smart decisions with your money.

2. I think you and your finance should really study personal finance and first-time homebuying through books like Scott's for at least a few months before you starting really thinking hard about your first home purchase. Your work history will get there well before you're ready to really jump into real estate for the win, instead of just shooting a half-baked shot.

3. Yes. It is realistic for you to buy.

4. Scott discusses the FHA mortgage program in depth and it will probably be how you should make your first purchase.

All that being said, your are in Riverside, California. The median single-family home sales price there is $650K. To my Pittsburgh eyes, where the median single-family home sales price is $221,000, it's a different world, and I am most definitely not the best person with the best knowledge to help you take step after step to change your life.

But if I were you, I would start talking to my intended here abut moving and working in a place with a much lower cost of life, about duplex/triplex/quadplex living, and about making sure you get paid as much as you can while spending as little money as you can.

It's going to be hard making a start where you're at. But not impossible. And to be honest, since I'm fifty now, I would change places with you in a heartbeat. Time, the most valuable resource of all, is what you have an abundance of. Don't be afraid to use some of it to plant your feet well before you jump off. There is such a thing a "analysis-paralysis," but as long as you don't let fear rule your every decision, it's not something I would really worry about at 23 and 21.

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  • Stephen MoralesBusiness Member
    Jacksonville, FL · Member since 2025 · 402 posts · 205 votes
    1y
    Quote from @Dominik Geib:

    I hope everyone is doing well! I appreciate you all for taking the time to read this message—I know your time is valuable, and I’ll keep this short.

    A bit of background: I’m getting married this December to my wonderful fiancée, we are 23 and 21. My fiancee is a college student and will be graduating in April of ‘26, she has had summer jobs and we both have been working towards this moment. I’ve started a couple side hustles as well. That said, we’re trying to make smart financial decisions as we prepare for life together—starting without a lot, but with a lot of drive and responsibility.

    I had a few questions I was hoping to get your perspective on:

    1. Buy vs. Rent – We've been looking at apartments and ADU properties, and surprisingly, some rents are higher than monthly mortgage costs. Do you think buying makes more sense than renting in today's market, especially for a young couple?

    2. Requirements for Buying a Home – We don’t have a traditional two-year work history or a large down payment. What are the key requirements we’d need to meet to even be considered for a home purchase?

    3. Is It Realistic for Us to Buy? – Are there viable opportunities or programs out there for couples like us? Or would it be more realistic to rent for now and revisit buying later?

    4. Loan Options – Are there any specific loan programs (like FHA or first-time buyer loans) that might be better suited to our situation?

    Again, thank you so much for your time and advice. I value your perspective and appreciate anything you’re willing to share.

    Best regards,

    Dominik


    Hi Dominik, 

    I started answering your questions but then it turns out you're really asking about purchasing a home lol. 

    In order to buy you need good credit history, stable work history/income, money saved for a down payment (unless you're getting a VA loan) with standard DTI (Debt-to-Income ratio) being 43% or less.

    If you pass all 4 then you can probably prequalify for a house. Student loans can be a killer on DTI though...

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    0Reply
    • Dominik Geib
      OP
      New to Real Estate · CA · Member since 2023 · 6 posts · 6 votes
      1y

      @Stephen Morales 

      thank you Stephen for your response! Yes it is harder and more challenging to be looking at houses in our circumstance. Thankfully no student loans and cars are paid off! We will be working hard over the next couple years. Thank you for your response, very much appreciated! 

      0Reply
  • JooYung Choi
    Realtor · NJ · Member since 2023 · 220 posts · 99 votes
    1y

    Hey Dominik,

    Awesome that you guys are young, fiscally responsible and ready to jump into investing in real estate. 

    I definitely recommend going with the buy option utilizing a low down payment loan like FHA or 5% down conventional. I also recommend looking into multi family homes, you'll be able to afford more / get more rent.

    You won't be able to buy a home now. Spend the next 2 years finding / working a steady w2. With both of your incomes combined, the mortgage should fit in your combined DTI. Keep your expenses in check (no loans, no credit card debt, car loans etc). You're gonna need all the DTI available to you guys.

    Now that you have a 2 year goal, save money for that down payment + closing costs together. 2 years will fly by so don't give up!

    Good luck!

    1Reply
    • Dominik Geib
      OP
      New to Real Estate · CA · Member since 2023 · 6 posts · 6 votes
      1y

      @JooYung Choi 

      thank you JooYung, I appreciate everything you had to share! Just in the lookout to see if we have any options to take a leap of faith haha. Thankfully we won't have student loans and our cars are paid off! 

      definitely looking forward to it! I appreciate your response and Thanks again!  

      0Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    1y

    Hi, Dominik.

    Books have been written about your situation. Really good books. If I were you, the place to start would be a book written by the CEO of this website. His name is Scott Trench, and the book's name is Set for Life: An All-Out Approach to Early Financial Freedom.

    Here are my short answers to your four questions which the book talks about in full.

    1. If you can buy RIGHT, it always makes sense to buy. If you can only buy WRONG, paying off the property will keep you house poor and unable to smart decisions with your money.

    2. I think you and your finance should really study personal finance and first-time homebuying through books like Scott's for at least a few months before you starting really thinking hard about your first home purchase. Your work history will get there well before you're ready to really jump into real estate for the win, instead of just shooting a half-baked shot.

    3. Yes. It is realistic for you to buy.

    4. Scott discusses the FHA mortgage program in depth and it will probably be how you should make your first purchase.

    All that being said, your are in Riverside, California. The median single-family home sales price there is $650K. To my Pittsburgh eyes, where the median single-family home sales price is $221,000, it's a different world, and I am most definitely not the best person with the best knowledge to help you take step after step to change your life.

    But if I were you, I would start talking to my intended here abut moving and working in a place with a much lower cost of life, about duplex/triplex/quadplex living, and about making sure you get paid as much as you can while spending as little money as you can.

    It's going to be hard making a start where you're at. But not impossible. And to be honest, since I'm fifty now, I would change places with you in a heartbeat. Time, the most valuable resource of all, is what you have an abundance of. Don't be afraid to use some of it to plant your feet well before you jump off. There is such a thing a "analysis-paralysis," but as long as you don't let fear rule your every decision, it's not something I would really worry about at 23 and 21.

    2Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    1y

    I have not read Scot trench’s book set for life, but I am familiar with your market, the challenges, and the benefits.  

    I will start that rent being more than mortgage does not imply that it is good to buy.   Property tax in your market at purchase is typically over 20% of the rent by itself.  Maintenance and cap ex is more than virtually every inexperienced investor believes.  Insurance adds some more costs.

    The reality is in riverside it is initially cheaper to rent than purchase move-in ready homes on the mls.  This is true in virtually all markets, but very true in the non extreme Southern California markets.  I include riverside in these areas.

    So does this mean I do not recommend purchasing?   Not necessarily. 

    If you plan to hold long term, you will do great.  A hold of a riverside home 10 years is virtually certain to produce a good/great return.  A hold over 5 years in recent times produced a good return but I fear with the current rates this might not hold true on a purchase today.

    Or you can exert the effort of a value add.  This could accelerate the early returns which could allow shorter holds to produce good returns.

    As for financing, make sure you do what you can to achieve high credit scores. There are many alternate finance sources for owner occupied. The first I would look into is NACA. It has various hurdles, but it is designed exactly for people like you and your fiancee. If you go this route I recommend either your lender or re agent to have experience with the program. Next to consider is assumable loans that originated prior to q2 2022. These assumptions usually require owner occupancy. Assumable is not the same as sub to and I do NOT recommend you pursue sub to (too risky).

    Educate, be patient on the buy but be prepared to act if the right deal presents itself, recognize the easiest way to achieve a good return is by having a long hold (different form of patience).   Recognize value adds are work and the first value add will likely have unexpected hurdles.

    Good luck

    1Reply
  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    1y

    @Dominik Geib The fact you're asking these questions, learning, and trying to avoid pitfalls is really important. Most people don't and impulse there way through life and never get ahead. Dollars come in and every dollar goes out. You and your fiancé should read books, listen to podcasts, make educated choices, follow a budget (highly recommend Quicken Simplifi app!), and take things slow.

    0Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    1y

    I see you're in Riverside CA, I know many parts of Riverside can be a very rough part of town.

    Personally, as far as quality of life I would rather rent in, for instance Newport Beach or Huntington Beach CA then own a house in Riverside or further out.

    Nothing wrong with those areas, but there are many nice apartment complexes down at the beach, and if you look down there you might find something that you like.

    That being said, it's important to live near your work so you're not spending forever on the freeway, and she's not spending forever on the freeway, and the two of you never get to see each other except one day a week at the afternoon at 2:00 PM or something.

    But if you grew up in Riverside and that's your hometown, then that's probably where you would like to be.

    What I'm getting at is it's not just a buy / rent decision always, some people want to factor in quality of life and neighborhood that they live in- and what are the fun things to do that are nearby, things like that.

    I just wanted to weigh in that it can also be a decision of where to live, you might have some choices that are not just purely financial--as newlyweds the two of you together can decide where you would like to live and what you can afford when you get there.

    And I would assume that renting in Riverside is a little bit cheaper than renting on the beach- not talking directly on the sand but in one of the beach cities.

    To qualify for a home loan typically you need to have a couple of years of employment history that is not temporary work or side hustles- a regular job.

    As far as down payment, you could look into grants that they have for first time home buyers in your county and city.

    You will still probably have to come out of pocket with some cash though.

    Trying to get the best paying job that you can with an employer that is stable meaning unlikely to go out of business at the first little downturn might be a smart move.

    A wonderful option might be living with either her parents or your parents, and saving 100% of your money.

    Maybe they would do that as a gift to you to allow you to save up for a home, and you could in return cut the grass or paint their house for them or something like that.

    As far as rent versus own, the prices in California of homes are astronomical in some areas and you might be priced out even with dual income no kids (DINK).

    Meaning you may be a forever renter in California, not by choice but by circumstance, and if that happens You might want to look at renting in a larger apartment complex, with amenities like a hot tub, a weight room, a dog park, etc...

    Just be aware that an apartment complex is its own neighborhood, so be aware of who your neighbors are- because some of them will house some rather rambunctious loud individuals, and some tough guys, so just be aware of that also.

    Good Luck!

    1Reply
  • Kate Sanchez
    Member since 2025 · 248 posts · 101 votes
    1y

    @Dominik Geib 

    Congrats on your upcoming wedding! You’re already ahead by thinking this through carefully. Here’s a quick rundown:

    Buy vs. Rent — Buying can make sense if you plan to stay put for at least 3–5 years, but keep in mind the upfront costs (down payment, closing costs, repairs). Renting can give you flexibility while you build savings and credit.

    Requirements for Buying — Lenders typically look for stable income, decent credit, and at least a small down payment (some programs go as low as 3%). The two-year work history rule can sometimes be flexible, especially if one of you is just finishing school.

    Is It Realistic? — There are first-time homebuyer programs, down payment assistance, and FHA loans that are designed for buyers with less cash upfront. A good local mortgage broker can help you see what's possible.

    Loan Options — Definitely look into FHA, USDA (if buying in rural areas), and first-time buyer programs in California. Some cities/counties also offer special grants or assistance.

    You’re on the right track — keep saving, stay patient, and keep learning. Wishing you both the best on your journey!

    1Reply
  • Dominik Geib
    OP
    New to Real Estate · CA · Member since 2023 · 6 posts · 6 votes
    1y

    Thank you to all that responded thus far! I very much appreciate you all and for taking your time to respond. Very helpful advice and I’m looking forward to learning more about real estate and investing. 

    3Reply
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