New Member: Recent College Graduate

7 Replies

Hello biggerpockets!

I am 23 year old recent college graduate and have approximately $50,000 dollars saved up with no debt. I am currently working and make around $50k per year. I have very low living expenses and want to start investing in real estate as soon as I can. I was thinking about purchasing a rental property or two but my ultimate goal is to buy a beach house, or at least a $400k house.

What would be the best way to invest my money or accomplish my goals?


Hey Anthony,

Being just a bit farther down the path than you (26), I wish I would have bought a multi-family to start my career as an owner occupied dwelling. Buy a duplex or triplex and live in one unit as a great way to get in to a property for low down, that way you can save most of your savings for a down payment on another property. Fast forward a couple years and you could have two nice multi-family properties with great rates and very little out of pocket as you move into your "forever" house, and that's if you stopped investing after your first two purchases.

One other reason I like this plan, my wife would not be ok with moving into a duplex or triplex now, however at your age she would have been ok with it as we were just getting started. So, I had to start backwards and buy my forever house with low down and great rates, and had to spend all of my savings on investment properties.

It depends on what your goals really are. I assume passive income? But with the beach house and the $400k house, would that be for yourself or rentals? Where did you come up with $400k as a reference point?

The best way is to clarify exactly what it is you want to accomplish and then seek out education and information on how to do whatever it is that will accomplish that. Plenty of information on here for sure and lots of people willing to help. But need to drill down a little further on your goals.

Thank you for the quick replies Mike and Ali. I appreciate the advice from both of you.

Mike: Thank you for the suggestion. You are the first one to help me on this site, so I will surely remember you and your proposed course of investing.

Ali: To answer your questions, I am still not quite sure what my investing goals are. I just know that I want to get a head start on investing as soon as I can (whether it be real estate or any other vehicle). My overall goal, like most everyone else, is financial independence and a nice home. As far as the $400k base point, that is usually what a decent property costs in the Seattle area.

I really do not know what I can afford/invest at this point. I just moved out of my parents house after graduation and do not know anything about real estate. I am in the middle of an internship with the salary mentioned in my original post, but should be acquiring a full time position in the near future with an annual salary of at least $60k. I live a frugal life and currently save around 70-80% of my earnings. What would be the price range for rental properties that I could afford?



@Anthony Nguyen

You sound like a smart man, having a passion to invest as soon as it is financially reasonable for you to do so.

Having an annual income around $50k with very litttle debt will probably keep you in properties under $250k. You could find some nice cash flowing duplexes around $150k-175k down in the Seatac area which is what my personal recommendation would be for you. With 25% down that is approx. $40k out of pocket. Or if you take @Mike Sattem advice, which is great advice, you could get into one of these for as little as 5% down, less than 10k out of pocket.

I have a great team of mortgage folks I've found that I could refer you to to talk real numbers. Shoot me a message and I will send you their info.

@Anthony Nguyen

With 50k to spend and a full time job, you should be in a fairly good place to start your career. I recommend taking a look a the following sites and finding a way into 2-4 unit properties:

0% Down:
VA Loan (

3.5% Down

3.5% AND Renovations
FHA 203k loan (

5% Down
Homepath Owner Occupied

Not as cheap, but come with renovation options attached to the loan:
10% Down
Homepath Investment (SFH only)

20% Down
Homepath Investment (Duplex only)

25% Down
Homepath Investment (3-4 Unit Buildings)


Q: I like the concept of MFH investing, where should I start?

Short Response:

1. Eliminate your rent payment
2. Bring all deals to the BP community (and be humble when doing so)
3. Stick to the returns you want

Long Response:
Learn everything you can about multi family investing. Every day you should answer a few questions and write down several new ones.

The general theory is that you need to drive costs out of your life and/or add new revenue. If you live with your parents, and they don't charge you rent, good. I'd then start forcing yourself to put $500-700 away each month as a "rental" payment towards some real estate.

If you pay rent of any kind, to your folks or to another landlord, find a way to eliminate it from your life. My suggestion is to find a 3 or 4 family property that you can purchase. FHA loans are a good way to go, but be wary of the additional percentage points you have to pay each month as PMI. VA loans are even better, but require you to have served in the US military.

Run every deal you find through the BP community. Some of the responses are harsh, but they are eye opening. There are people on this site that have been buying and selling 4x as long as I have. When I find answers to my daily questions, I can almost always find the answers here at BP.

Last one for the moment: stick to your numbers. It bears repeating: stick to your numbers. If you want $200/month and a 12% Cash on Cash return for your investment, stick to that number. If you pick 12%, 9% is not good enough, nor is 11.7%. Make your offers accordingly.

Hey @Anthony Nguyen

Welcome, man. You will find tons of great articles and people willing to help here at BP. Keep checking in and always be learning while you're here.

You'll also find a good number of younger like-minded guys like us who are just starting out (I'm 23 and in the same boat as you). It is amazing looking back 6 months ago at what I didn't know, and now do, thanks to BP.

Would be happy to connect with you and help each other out in any way possible. Welcome!

@Anthony Nguyen Welcome to BP, I am 25 and looking to invest also. My plan is to purchase a duplex or fourplex and become an owner occupant and build from there. I'm excited to see REI go well for ya!

@Aaron Montague

Great breakdown thank you.

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