How/when to start investing

[Eric Reed]

I live in the northwest suburbs of Chicago. I just turned 23 and graduated from college 6 months ago. I started my full time job where I make 75k a year. I currently have 20k saved up and live at home so my only expenses are gas, car maintenance, and a few subscriptions. I just opened up a HYSA, Roth IRA, and individual brokerage account where I invest a few hundred dollars a month into an index fund. My current plan is to save as much as possible for two years so that I can afford a duplex and use an FHA loan. My goal is to house hack a few times to start my real estate investing career.  Is this a reasonable plan? is there a better way to get started? what advice can you give me to prevent unnecessary risks?  thank you !!

[Jarret Jarvis]

Love this post, first off, you’re ahead of 95%+ of 23-year-olds already.

You’ve got:
• $75k income
• $20k saved
• Low expenses
• Investing consistently
• Clear goal (FHA + house hack)

That’s a strong foundation.

I’m based in the Chicago area as well and I’ve helped a lot of buyers around your age from BiggerPockets get their first duplex and start their investing journey. Most of them felt exactly how you do right now, excited but wanting to make sure they don’t mess it up.

For context, I personally own 21 properties and manage a real estate team that does about $88,000,000 a year in sales. I say that not to flex, but because I’ve seen what works (and what blows up) over and over again.

Here’s my honest take:

Your plan is reasonable.
But you probably don’t need to wait two full years.

At $75k income, low debt, and $20k saved, you’re closer than you think, especially in the northwest suburbs where duplex prices are still workable compared to the city core.

A few thoughts:

1. FHA house hacking is a great first move
   3.5% down keeps your capital intact. The key is buying something where one unit covers most (or all) of your payment.

2. Don’t just “save blindly” for two years
   Instead:
   • Study actual duplex numbers now
   • Learn rent comps
   • Run conservative projections
   • Talk to a lender to understand your real buying power

You may realize you can move sooner, or that you need slightly more reserves.

1. Biggest risks to avoid:
   • Overestimating rent
   • Underestimating repairs
   • Buying for appreciation instead of cash flow
   • Not budgeting reserves (I like 6 months PITI minimum)

2. Think long-term strategy
   If you house hack every 1–2 years, you could realistically own 3–5 properties before 30. Time is your biggest asset right now.

The only thing I’d tweak in your plan is this:
Don’t wait just because you think you “should.” Wait because the numbers say you should.

If you want, I’m happy to sanity-check a deal with you when you start looking. You’re in a great position, now it’s just about executing intelligently.