How to start real estate investing as a 20 year old with little to no knowledge

Question

Hello everyone !! My name is Sophia, I just turned 20 and am very interested and determined to get into the real estate field. I'm still in the process of learning, but I am trying to get out of my 9-5 job and start my real estate investing career early. I know it will take time before I completely replace my 9-5 with this, but I am stuck and unsure of how to move forward. I've heard about the BRRR method (which I am currently studying/learning about) and house hacking. I do not have much knowledge in the real estate field, which is why I joined BP and started buying books. I would love some assistance or even advice on what actions I can do to start while I'm learning to get my foot in the door. I don't have much money saved, i live with parents and only bill I have is car payment (which I am so close to paying off already). I've heard some people starting off with little money and some with large amounts of money already saved and unsure if I really do need a good savings. I would love to know an estimate of how much I would really need to start and advice on what i could be doing now. I've heard that becoming an agent would be a good first step even if it's not the specific role I want to be, but if it is really recommended to start and to get into the field, I am open to it.

Bryce Jamison · Answer

As a young person just starting on their own I'd first recommend getting a firm grasp of your personal finances and good personal finance habits. This means avoiding consumer debt, getting on a budget, and saving a full emergency fund. Dave Ramsey is a good resource for beginners, but you'll soon notice our community and Dave have varying views on using leverage to invest.

Simultaneously, I'd recommend setting yourself up for a high paying career. It can take decades to build a big enough real estate portfolio to support your life style and buy more properties, so your income will be your big money source when you first start.

Also simultaneously, I recommend spending at least 6 months educating yourself through websites likes this and its family of books and podcasts, other real estate podcasts, books at the library, and local meetups. After 6 months you'll know what strategy you want to deploy, and have the confidence and knowledge to do it. This time can also be spent learning everything possible about your target market using websites like Zillow.

Christina Calderon · Answer

I think this is the best advice here. You're playing the long-game as a young person interested in investing. It's great to start thinking about strategies, locations, goals etc. but basic things like personal finance, debt management, career growth, upskilling, etc. will set you up to be in a position to actually achieve those. You don't need to wait until you're filthy rich to invest in real estate, but a strong foundation goes a long way.

Bruce Woodruff · Answer

Good advice above ^^^ I'll just echo what I find important : save, save, save money. Live frugally, every penny matters. As stated, a 'House Hack' is probably the best way to get started if you do not have a lot of $$ right now. Then use the equity in that house (after a coule years) to buy another property. This is when you wioll have more choices....do you want typical rental...? Or a STR? OR try a BRRRR?

Note - these all take much more knowledge and are much riskier...so use these first 2 years to study and learn. DOn't spend money on classes and 'mentors'...you don't need them. Just hop into the Forum and start asking questions, go to local 'meet-ups', build a network, etc....

Good luck, you'll do fine!

E.J. McCaffrey · Answer

Welcome to the group!

As you step into the world of real estate investing and begin shaping your investment strategy, it’s essential to focus early on two often-overlooked foundations: tax planning and asset protection. While it's easy to get swept up in the excitement of finding deals, overlooking these key areas can significantly impact your long-term success.

A solid tax plan helps you take advantage of deductions, optimize your investment structure, and retain more of your income. With smart, proactive planning, you can reduce your tax burden and give yourself greater financial freedom as your portfolio grows.

Equally critical is building a strong asset protection strategy. Real estate comes with legal and financial risks, from lawsuits to creditor claims. The right legal structures can protect your personal assets, minimize exposure, and give you an edge in legal disputes. It’s not just about defense. it’s about setting yourself up to invest with confidence.

To navigate this properly, consider partnering with experienced professionals such as a real estate-savvy tax advisor and an asset protection attorney who understands your goals and risk tolerance. Putting the right team in place from the beginning can save you time, money, and stress down the road.

Wishing you succes!

Disclaimer: This message is for informational and educational purposes only and should not be considered legal, tax, financial, or investment advice. No attorney-client, fiduciary, or advisory relationship is created by this communication. Always consult with qualified professionals familiar with your specific situation before making any decisions.

Randall Alan · Answer

@Sophia Johnson

Hi Sophia,Greetings from Lakeland, FL!  A lot of your answer depends on what direction you want to go in.   The cheapest way into real estate is buying a property you can live in.  First time buyers can usually do 3.5% down, which is way cheaper than the typical 20% required for a typical investment property.  from there you can decide how many families live in the unit… will it be a single family home with just you living there… or a duplex or triplex, etc where you earn income from the other tenants?

BRRRR probably isn’t a great approach for a beginner because usually you are buying a dilapidated property that needs renovation.  It can sometimes be difficult to get financing on those types of properties as a beginner.  Many times they have enough issues that they may not qualify for traditional financing… and there are rules that say if you finance a property you have to wait a year before you refinance it to get cash out.  It will likely be hard enough to buy a property like that, much less having more money to pay for the fixes.  Plus there is a learning curve with being able to estimate a renovation, as well as a lot more risk in the event something went sideways.

If you are interested in working in real estate becoming an agent could work for you, and it would give you more exposure to the field.  But I would tell you there isn’t a huge advantage to being an agent versus just being an investor.  Sure there could be some savings on commissions by doing your own deals…. But I would look at the bigger picture of deciding if being an agent interests you as a career path or not?

I would tell you that real estate is often a get rich slowly process. If you are looking to replace your W2 income with rental income it usually comes at about $200-300/month per tenant you have. So some simple math there would tell you how many houses you would have to buy to replace your income. You also gain appreciation as property prices increase… but that only happens either when you sell the property or cash-out refinance it.
I would suggest to you that you do something that interests you for your job and use money you save from your job to begin to invest in real estate. Maybe that thing you love is real estate… maybe it’s not. But you can be in any field and do real estate investing… so don’t think that becoming an agent is a requirement if you want to be involved in real estate. My wife and I didn’t get into real estate until our mid 40’s… but by having resources later in life we were able to go at it hard and we bought 21 doors in 8 transactions our first year… so pretty aggressive. It essentially became our retirement plan… and today we manage 37 doors and have done 8 flips.

I would encourage you to get connected to a local real estate investing group.  We belong to 2 in Lakeland, but I’m sure Tampa has many!

Bigger pockets is a great resource for you.  One thing people don’t realize is that these forums are searchable and have some  3 MILLION+ posts you can browse through for previous conversations on most any topic you want more information on!

I wish you all the best and all of us here are happy answer questions you may have.Randy

Jaypee Pau · Answer

Hey Sophia first off, props to you for getting serious about this at 20. That’s already putting you way ahead of most people. I didn’t really start taking real estate seriously until my mid-20s, and I totally get the “where do I even begin” feeling.

I started by learning the basics of house hacking (renting out a room or a unit in a duplex I lived in), and it really helped me ease into it without needing a huge pile of cash. There are even some 0% down loan options if you’re buying a place to live in no income cap, just need a decent credit score and some funds for closing costs.

Also getting your real estate license might not be necessary to invest, but it can seriously open doors. You’ll learn a ton, get access to deals quicker, and you could even use it part-time to help others while building your own portfolio.

You're doing the right things already books, BiggerPockets, asking questions. I'd say next steps:
– Figure out your local market (what's cheap, what rents for well, etc.)
– Look into first-time homebuyer programs in your area
– Try connecting with other newer investors or agents and ask what they wish they’d known at the beginning

Keep going! You’re way ahead of the game already just by showing up and asking questions like this.

Drew Vrska · Answer

hello Sophia! I am also a 20 year old real estate investor. I started out with the brrrr method. I am currently about to refinance my first property and I'm also in the market for another one currently before that. After I refi I will be looking to get 2 more! My goal is 5 deals by next summer. If you'd like to connect, reach out!

Dan Sheeks · Answer

@Sophia JohnsonI also run a networking group for young aspiring/beginner investors (between 15 and 26 years old), and one of the things we do is have a few Zoom meetings every month. If you'd like to join one sometime (no cost!), just let me know.

Scott Mac · Answer

Because language is important, let's tighten up the language a little bit- it's not a field (that's important).

Also your chance of not being a W2 wage slave from this is probably fairly low.

Meaning that you will probably have to do this in addition to some other type of employment.

You say you want to get into investing, it's important to have a silhouette, or a target type of investment.

That doesn't mean that this must be your exact investment, but it gives you something to learn about, and to compare other possible investments.

I'm going to give you a for instance silhouette here; a house for sale in your city not more than 10 minutes drive from your house, that you think renters would be interested in, and that you think you could get for a price that allows you to rent it out and cover all of your ((yearly)) expenses for that rental with some leftover as a little profit.

You need to know what insurance will cost and if you will have to pay that in one big chunk when you buy it.

You will need to know what type of a loan, or loans you might qualify for.

And you'll need to know what type of qualifications you will need to meet personally for those loans.

If you want to work at something where you might be able to learn about some aspects of SFH investment, working as a property manager for a company that manages single family home rentals, even part time, ((might be)) a way to learn about how some of the SFH investment things work in your area.

Good Luck!

Jeremy Horton · Answer

1) Get knowledge

2) Get money

How to start real estate investing as a 20 year old with little to no knowledge

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