What Would You Do at 18 to Be Ready for Your First Multifamily House Hack?

Question

Hello everyone,

I’m 18 and currently in school to become an electrical line technician. I plan to have a stable W-2 job within the next year, and my goal is to buy my first multifamily property and house hack as soon as I can afford it, ideally within the next 12 months.

Right now, I’m spending most of my free time learning about real estate through podcasts and books. I’ve also been analyzing multifamily deals with fewer than 5 units, potential single-family short-term rentals, and studying a few different markets to see where opportunities might make sense.

I really want to use this time wisely instead of playing catch-up later, so what else can I do to prepare myself for that first deal? Is there anything I might be doing wrong at this stage?

For anyone who started young or remembers being in this position, what would you focus on right now to set yourself up for success when you’re ready to buy?

I appreciate all the help, — Noah

Jules Aton · Answer

Hi Noah, the best advice I can offer is work like a maniac now and save money so when you are ready to launch you will have the funds to assist in success.

Noah Wautier · Answer

@Jules Aton I appreciate it, I have a part time construction job, to keep putting money in my pocket and saving for that first deal.

JD Martin · Answer

Second this. Work your azz off, spend nothing, sink all that cash into a reasonably safe investment in the short term like a CD or high-yield savings account. When you buy you need not only cash to put down, you need cash to close, cash to rehab and cash to maintain. If yo found a 3/4 plex for let's say 200k even FHA owner occupied you're going to need at least $10k to close, who knows how much to make sure the other units are livable (BTW, you should live in the smallest, crappiest unit), and reserves or access to credit to repair the inevitable things that will come up. I wouldn't even try it without having $20k saved even with an FHA first timer loan. Do you think you can save $20k in the next year?

Aaron Zimmerman · Answer

I think you're doing a lot of things right. At 18, you're already educating yourself on real estate. That's amazing.

Would it be Possible for you to get some type of job at school and/or summer internship? I'd look to leave school with as minimal debt as you can. That includes applying for scholarships within the school, etc. for your other income from job or internship, I'd recommend saving as much of that possible for your first house hack. Perhaps you can buy a house that you rent out to your friends. You might need to be a co-signer.

The other thing you could do is go to local networking events and be as helpful as possible to real estate investors in exchange for them showing you the ropes so you reduce the likelihood of mistakes.

Noah Wautier · Answer

@JD Martin I appreciate it JD! This is a big help and I definitely will have over 20k saved this time next year. Thank you.

Noah Wautier · Answer

@Aaron Zimmerman Thank you I appreciate that. I do currently have a part time job to keep saving for my first deal. Also I'm in a program that paid for most of my schooling. I haven't really thought about that. I'll look for some local events now thank you again!

What Would You Do at 18 to Be Ready for Your First Multifamily House Hack?

What Would You Do at 18 to Be Ready for Your First Multifamily House Hack?

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