Hi! I’m 22 and interested in real estate. I understand wealth build slowly so I’m not rushing into buying right now just trying to gather information. Just curious on where you guys started or would start. I just got out of debt, saving, stay with my parents so no real bills yet, and credit score a 760+ with credit history. I’m mainly focused on multi family home such as duplex triplex or 4 unites.
Questions: How much of a down payment do you have to have to start or get loans? Do you have to house hack starting out? Where would you start or Just any tips would help!
Hi! I’m 22 and interested in real estate. I understand wealth build slowly so I’m not rushing into buying right now just trying to gather information. Just curious on where you guys started or would start. I just got out of debt, saving, stay with my parents so no real bills yet, and credit score a 760+ with credit history. I’m mainly focused on multi family home such as duplex triplex or 4 unites.
Questions: How much of a down payment do you have to have to start or get loans? Do you have to house hack starting out? Where would you start or Just any tips would help!
If I was starting out single in my 20s, I'd look to acquire a 2-4 unit property with an FHA, 3.5% low-down payment mortgage.
I'd also look into using an FHA 203k renovation loan, allowing me to buy something ugly, thus unqualified for a standard mortgage, which would weed out a lot of competition and push the price lower.
To maximize my cashflow and gain landlording experience, I'd do STR and MTR in the other units, as well as the other bedrooms in my unit. Since most cities won't allow basement rental units, I'd consider finishing the basement, just well enough for me to live down there (cities don't care if owner chooses to live in basement), so I could rent out ALL the units.
I'd save all my cash and look to refi the property in 1-2 years out of the FHA mortgage, so I could use it again if necessary. Depending on how close I was to having 20% equity in the property and being able to avoid PMI, I'd consider using some of my cash to pay down the mortgage when I refinanced. Otherwise, I'd save my cash for the next acquisition.
I’d also be posting on every social media platform and telling everyone I knew that I was looking for more real estate deals. I’d aim for low downpayment land contracts and lease options.
After refinancing out of the FHA mortgage, I'd evaluate if I wanted to repeat the 2-4 unit FHA 203(k) process again or if I had the 20% down to target 5+ units.
If you’re in your early 20s with no debt, strong credit, and you’re thinking about real estate—you’re already ahead of most people.
The key now is not to overcomplicate it.
Financing Changes Everything
If you live in the property (house hack): FHA: ~3.5% down. Conventional: ~5% down.
On a $300K duplex, that’s roughly $10K–$15K.
If you don’t live in it: 20–25% down--$60K–$75K on the same deal
That’s why most people never get started.
House hacking works--You don’t have to do it—but it’s one of the most practical ways to begin.
Lower cash in, better loan terms, rent offsets your payment, you learn the business in real time. It’s not exciting. But it works.
Keep it simple:
Learn to evaluate deals properly (vacancy, maintenance, capex, management)
Talk to a few local lenders early, Drive neighborhoods—know where you’d own
Build reserves beyond your down payment
Remember:
You don’t need a perfect deal. You need a workable one.
A simple duplex or triplex, live in one unit, rent the others. It won’t feel flashy. But it will put you ahead of most people—quickly. Stay patient. Learn how to evaluate properly.
When the right deal shows up—you’ll know it.
I’m curious about other readers—if you were starting at 22 today, would you house hack or save for a straight investment?
House hacking is the way to go when you're young and unencumbered. If you house hack every year or two, you'll put yourself in a very sold spot with even a few properties. The low dowpayment program are incredibly helpful. So long as you're reducing housing expense today, and it cash flows upon move out, that's a win.
Hi! I’m 22 and interested in real estate. I understand wealth build slowly so I’m not rushing into buying right now just trying to gather information. Just curious on where you guys started or would start. I just got out of debt, saving, stay with my parents so no real bills yet, and credit score a 760+ with credit history. I’m mainly focused on multi family home such as duplex triplex or 4 unites.
Questions: How much of a down payment do you have to have to start or get loans? Do you have to house hack starting out? Where would you start or Just any tips would help!
If I was starting out single in my 20s, I'd look to acquire a 2-4 unit property with an FHA, 3.5% low-down payment mortgage.
I'd also look into using an FHA 203k renovation loan, allowing me to buy something ugly, thus unqualified for a standard mortgage, which would weed out a lot of competition and push the price lower.
To maximize my cashflow and gain landlording experience, I'd do STR and MTR in the other units, as well as the other bedrooms in my unit. Since most cities won't allow basement rental units, I'd consider finishing the basement, just well enough for me to live down there (cities don't care if owner chooses to live in basement), so I could rent out ALL the units.
I'd save all my cash and look to refi the property in 1-2 years out of the FHA mortgage, so I could use it again if necessary. Depending on how close I was to having 20% equity in the property and being able to avoid PMI, I'd consider using some of my cash to pay down the mortgage when I refinanced. Otherwise, I'd save my cash for the next acquisition.
I’d also be posting on every social media platform and telling everyone I knew that I was looking for more real estate deals. I’d aim for low downpayment land contracts and lease options.
After refinancing out of the FHA mortgage, I'd evaluate if I wanted to repeat the 2-4 unit FHA 203(k) process again or if I had the 20% down to target 5+ units.
Hi! I’m 22 and interested in real estate. I understand wealth build slowly so I’m not rushing into buying right now just trying to gather information. Just curious on where you guys started or would start. I just got out of debt, saving, stay with my parents so no real bills yet, and credit score a 760+ with credit history. I’m mainly focused on multi family home such as duplex triplex or 4 unites.
Questions: How much of a down payment do you have to have to start or get loans? Do you have to house hack starting out? Where would you start or Just any tips would help!
If I was starting out single in my 20s, I'd look to acquire a 2-4 unit property with an FHA, 3.5% low-down payment mortgage.
I'd also look into using an FHA 203k renovation loan, allowing me to buy something ugly, thus unqualified for a standard mortgage, which would weed out a lot of competition and push the price lower.
To maximize my cashflow and gain landlording experience, I'd do STR and MTR in the other units, as well as the other bedrooms in my unit. Since most cities won't allow basement rental units, I'd consider finishing the basement, just well enough for me to live down there (cities don't care if owner chooses to live in basement), so I could rent out ALL the units.
I'd save all my cash and look to refi the property in 1-2 years out of the FHA mortgage, so I could use it again if necessary. Depending on how close I was to having 20% equity in the property and being able to avoid PMI, I'd consider using some of my cash to pay down the mortgage when I refinanced. Otherwise, I'd save my cash for the next acquisition.
I’d also be posting on every social media platform and telling everyone I knew that I was looking for more real estate deals. I’d aim for low downpayment land contracts and lease options.
After refinancing out of the FHA mortgage, I'd evaluate if I wanted to repeat the 2-4 unit FHA 203(k) process again or if I had the 20% down to target 5+ units.
Good luck with whatever you decide to do!
Hey Drew, Thank you. This sounds like a solid plan I will look into this more. Thanks for the guidence!
you don't 'have to' house hack, but it's a great option. the market is really challenging right now for new investors. (pro tip: anyone who says otherwise has something to sell.)
call some lenders. they're in the best position to advise you on loans and down payments.
For down payments, it really depends on the loan type and whether you plan to live in the property. If you're buying a duplex, triplex, or 4-unit and plan to live in one of the units (house hacking), you can typically get started with as little as 3.5% down using FHA or sometimes 5% down with conventional financing. If you're buying purely as an investment and not living there, the down payment is usually higher, often 15% to 25%.
You don’t have to house hack, but it’s a great way to get started because it allows you to use low down payment owner-occupied financing while rental income from the other units helps offset your mortgage. Many investors use this strategy for their first property, live there for a year, then keep it as a rental and repeat.
You’re in a strong spot, and multifamily is a great path to build wealth over time. Happy to share more specifics or run numbers on a deal when you come across one.
You’re in an incredible position for 22 - what most people overlook is you’re not just starting early, you’re starting with a chance to be tax-efficient from day one.
On down payments:
FHA (owner-occupied 2–4 units): ~3.5% down
Conventional (owner-occupied): 5–15%
Investment (non-owner): 20–25%
You don’t have to house hack, but from a tax + wealth perspective, it’s one of the smartest plays. When you live in one unit:
You can depreciate the rental portion of the property
Write off a portion of expenses (interest, taxes, insurance, repairs)
Potentially offset rental income with those deductions
That’s where real estate starts to separate itself—you’re not just earning income, you’re controlling how it’s taxed.
If I were starting again, I’d look for a 2–4 unit, live in one unit, and focus on:
Strong rental demand
Expenses that don’t kill your cash flow
Long-term hold potential
Also, keep reserves and don’t rush. Your first deal isn’t just about buying—it’s about setting up a tax-advantaged foundation for everything that follows.
@Kyah Buckingham You are in a strong position. Low expenses, good credit and no debt is exactly where you want to be. You can start with as little as 3–5% down with a conventional loan or 3.5% with a FHA program which is great for 2–4 units if you plan to house hack. While house hacking isn't a must, it is one of the fastest ways to get started with lower money out of pocket. Also, plug into your local REIA group. You will learn faster from local investors than just online content.
Hey Kyah — you’re in a better position than most people who start. Strong credit, no debt, low expenses, and living at home gives you options that a lot of new investors don’t have.
A lot of great advice has already been shared, so I’ll add a perspective from the funding side since I work with investors every day:
1. You don’t need a huge down payment to start — you need the right strategy.
If you live in the property:
FHA: ~3.5% down
Conventional: ~5% down
If you don’t live in it:
20–25% down is standard
That’s why so many people start with a house hack — not because you “have to,” but because it lets you get in the game with far less cash.
2. Your credit score is a major advantage.
A 760+ opens doors to better rates, smoother approvals, and more loan options. Most people don’t have that at 22.
3. Start by learning how to evaluate deals — not by trying to buy immediately.
You’re already doing the right thing by gathering information.
Focus on:
Understanding cash flow
Running numbers conservatively
Learning local rents
Talking to lenders early
Touring neighborhoods you’d actually live in
Once you know what a good deal looks like, the process becomes way less intimidating.
4. Multifamily is a great path — but don’t overlook small steps.
A duplex, triplex, or four‑unit is perfect for building wealth early.
But even a simple house hack in a solid area can set you up for your next purchase.
5. When you’re ready, run your numbers with someone who sees deals every day.
If you ever want a second set of eyes on a deal or want to understand what different loan options look like in real numbers, I’m happy to help break it down.
You’re starting from a position of strength — stay patient, keep learning, and when the right deal shows up, you’ll be ready for it.
It's great to hear that you're interested in real estate and are taking the time to gather information before making any big decisions.
House Hacking can be a great strategy for someone starting out. By living in one unit and renting out the others, you can offset your mortgage payments and build equity while gaining landlord experience. It's a practical way to dive into real estate investing with reduced financial pressure.
Continue to educate yourself about the local real estate market. Understanding market trends, property values, and rental rates will be crucial when identifying potential investment opportunities.
You're correct that wealth builds slowly, especially in the real estate industry. However, starting at the age of 22, you're already off to a great start.
I'm a real estate agent in MA, and my wife and I are currently on the journey of finding a multifamily property to house hack. We believe house hacking still works and is one of the best strategies for new investors.
To answer your question, the down payment will depend on the price of the house you're looking for, but with an FHA loan, it's usually 3.5%, plus closing costs, which generally add another 2–5% of the home price.
You do not have to house hack when starting out, but it's a great strategy to help you enter the real estate industry, give you a feel for what it's like to be a landlord, and learn the process firsthand, which is a very valuable asset.
My biggest advice when choosing a property is LOCATION. You are buying a property where you may have to live for 2–3 years, and you also want to consider whether the property's value is likely to increase over time.
I'd start by finding a market that makes sense and building a core team.
An investor-friendly lender
Real estate agent who is also an investor
Reliable contractor/handyman
Home inspector
An agent who works with investment properties should already have a core team in place, so you can also get referrals through them.
I'd love to hear an update on your journey. Good luck!
@Kyah Buckingham We need a little more context. You say you don't have any debt. That is a great place to start. You are saving, but do you have any savings saved up yet? If so, how much? What resources are you starting out with? For example, do you have people near you that would like to be a partner with you?
You could house hack. But if you don't have an income, or high enough income then you may have a hard time qualifying for a loan based on your income, even though you have a good credit score. Have you talked with a loan officer to find out what you could qualify for?
If you don't have enough income to qualify for a qualifying mortgage, then you may consider a non-QM such as a DSCR loan. This type of loan gets qualified based on the income and the expenses of the property and would work better if it were a 1-4 unit property. Of course, one of the more lucrative niches right now is the rent by the room. So let's say you find a property that needs some work and has, or could have 4-5 bedrooms in the main house and has a studio apartment in the back yard. This may be a perfect set up for you to buy it with hard money, with the help of family or credit lines, and then get it fixed up and then get a tenant in there with a temporary master lease and then once the financing is completed, then you can rent out all the rooms and you can live in the guest house in the back.
That is likely the rout I would go if I were to start over in my 20's knowing what I know now. I would definitely buy a property that was undervalued, probably from a wholesaler. I would stay far away from buying a property at market value.
Hi! I’m 22 and interested in real estate. I understand wealth build slowly so I’m not rushing into buying right now just trying to gather information. Just curious on where you guys started or would start. I just got out of debt, saving, stay with my parents so no real bills yet, and credit score a 760+ with credit history. I’m mainly focused on multi family home such as duplex triplex or 4 unites.
Questions: How much of a down payment do you have to have to start or get loans? Do you have to house hack starting out? Where would you start or Just any tips would help!
Your questions: "How much of a down payment do you have to have to start or get loans? Do you have to house hack starting out? Where would you start or Just any tips would help!"
It Depends a lot on your personality and goals. I chose a different path than most, I utilize creative financing and I don't face the limits of bank qualification or credit scores. I've never worried about "down payments" or "house hacking. My business goes up in a down economy and when others can't buy, because they've run out of money or credit. It just takes some knowledge. I always buy at less than 80% of MLS list (I have the receipts to show how) with no real estate agents, so no fees.
Hey, I’m in the Bucks County area and just getting started too. I’m kinda in the same spot, just trying to learn how everything works before jumping into anything.
I’ve been looking at deals online and trying to understand the numbers, but still figuring it out. Are you planning to go straight into multifamily or thinking about something like house hacking first?
Hey, I’m in the Bucks County area and just getting started too. I’m kinda in the same spot, just trying to learn how everything works before jumping into anything.
I’ve been looking at deals online and trying to understand the numbers, but still figuring it out. Are you planning to go straight into multifamily or thinking about something like house hacking first?
Hey Carlos! Please message me. I would love to talk more.
Hi! I’m 22 and interested in real estate. I understand wealth build slowly so I’m not rushing into buying right now just trying to gather information. Just curious on where you guys started or would start. I just got out of debt, saving, stay with my parents so no real bills yet, and credit score a 760+ with credit history. I’m mainly focused on multi family home such as duplex triplex or 4 unites.
Questions: How much of a down payment do you have to have to start or get loans? Do you have to house hack starting out? Where would you start or Just any tips would help!
Hey Kyah. I'm actually in a similar situation to you and just closed on my first deal earlier this month so hopefully I can be somewhat informative. I am 21 years old, I make 38k a year W2, I have a 762 Credit Score, No Debt, Previously lived rent free with my parents.
1: How much of a down payment do you have to have to start or get loans? You have 3-ish options for financing a house hack. FHA or Conventional.
FHA Many people will recommend FHA because you can put 3.5% down, 6% seller concessions, Qualify for more house b/c it allows you to have a 57% Debt to Income ratio, and you only need a 580 credit score to qualify. The downsides are you are required to pay Mortgage insurance for the entire life of the loan and the property will also need to pass HUD standards.
What frustrated me is that people will not tell you when looking at small multifamily you will almost entirely deal with slumlords that do the bear minimum to their properties. Many of them are falling apart due to deferred maintenance and will not pass HUD standards. Things to look out for are all the mechanicals must work, Roof must last another 3 years, no pealing paint or siding damage, No Visible Mold. If you can have the seller fix the issues before closing it may be worth it but in my experience the whole reason they are selling the property is because they don't want to work on it and sell it as is.
(FHA 203k Loan) This is a construction loan that allows you to lump renovations into an FHA loan. While it will help you work around the HUD it is a significantly more difficult loan to use and I would not recommend it. I'm a licensed contractor and intend to do 90% of the work myself to save on the cost. With a 203k loan you are required to have someone else give quotes to do the renovations and it will eat through you're budget quick especially if you are not familiar with construction. From the quotes I got I was looking at 3-4x what it was going to cost for me to just DIY and it was going to take 3 months before they could start work.
You are also required to pay the contractor out of pocket then wait for the an your officer to confirm the work was done correctly in order to get reimbursed the cost. Say if there are new tariffs or changes in the work the original bid may increase and you will not be reimbursed for it.
Conventional You need to put at least 5% down, 620+ credit score, and 45% Debt to Income. Much more forgiving on the condition of the property. Downsides are you need more cash upfront, you will still need to pay mortgage insurance until you have 20% equity, You will need to put 10% down to get 6% seller concessions, and you wont qualify for as much house.
Just for simplicity I'll tell you my exact numbers I was quoted for my property. I shopped for the best I could get through 5 different lenders.
Purchase Price $125,000 . 2/1 single family property with a detached 1/1 Accessory Dwelling Unit.
FHA 3.5% down at 6.375% APR OTD Closing $15,920 Monthly $1,113.35 $417,726 paid over the lifetime of the loan Conventional 5% down 6.575% OTD Closing $16,885 Monthly Payment 1,053.78 $388,436 paid over the lifetime of the loan
The best option for you depends on what you want to do long term. As of now I aim to buy and hold the debt for the entire life of the loan with no prospects of selling or refinancing. I ended up going conventional because of the 30k saving over the lifetime and I was able to get a few grants that brought my cash to close down to $11,820 that I couldn't get with FHA.
Because you have a great score and no debt I would just stick to 5% conventional and ask for 3% seller concessions to reduce your out of pocket. But you should shop around and see what's best for you in your area.
2: Do you have to house hack starting out? You do not have to but it is defiantly easierto build with House Hacking. On an investment property you will need to put 20-25% down on a commercial loan and have a detailed outline showing you're plan down to the cent. You will also need to get the property under contract before even applying for the loan because they do not provide preapprovals. Very few sellers will be open to signing with someone who doesn't have a preapproval. It will be even harder with your age and lack of experience.
You can also look into owner financing through a title company. Very few people will be interested because they either need the money now or are looking to 1031 into another property. But It never hurts to pitch it to a seller especially if they are another investor. At the end of the day they just want to make money and if you offer to pay them monthly just to carry the note it can be more advantageous to them over renting it out and having to deal with landlording. 3: Where would you start or Just any tips would help!
This is what I did and recommend you do.
Build up a 6 month reserve and put it into a high yield saving account. Get preapproved with a for as much as you can based off your income. (Local is typically better) Start looking in your back yard on Zillow, Redfin, Realtor, Facebook Marketplace. You will be shocked with how many Multifamily homes are listed incorrectly as single-family so look at everything. When you find something contact the Seller, schedule a meeting, and walk the property. As you meet agents find one that you like and sign with them. Don't accept anything more than 3% commission and any term longer than 3 months (You can renew it if you like them and easily stop if they are not a good fit)
Run you're numbers on the properties to see where you need to come in to cashflow. You can find average rents for the zipcode on HUD.gov or rentomerter. Use the most conservative numbers and aim to break even or cashflow >$100 per door per month after putting 25% away. It doesn't need to be perfect if its a house hack. (You can use the Bigger Pockets calculator)
Start making lowball offers that close in 45 days through your agent and raise your offer 5k to whatever you're comfortable with.(Ask your lender to lower your preapproval letter to around what you offer to give yourself leverage and not show your full hand.) Once you have an offer accepted immediately start getting with lenders to secure the best possible rate and terms. Calculate your rehab more in depth on the actual costs and try to do as much of the work as you can yourself. Add 20% for unforeseen things you may need to do. Close on the property and put all of your focus on getting the units ready to rent and rent them out ASAP.
You shouldn't put near as much money into your own unit immediately. Keep it livable but understand youre tenants will always come first. Live there for 12 months and begin looking for your next property to house hack. Once you move out rent your unit ASAP and rinse and repeat until you have 3-4 mortgages. You can try getting more but for me its too much risk to have that much at once. Work on snowball paying off the mortgages and your cashflow will explode.
At least I hope. For my deal I will be actually losing 25$ a month while living there but in 12 months Ill cashflow over $800 a month. Again I'm only one deal in but that's my plan. I will update the forums as I go. Thanks for reading my book and yap. Feel free to reach out if you have any questions or critiques
On the down payment question, there really isn't a one-size-fits-all answer. It depends on the property, the market, and what loan program you qualify for. For a typical investment property, you're usually looking at around 20–25% down. But if you go the house hack route and actually live in the property, you can potentially get into a 2–4 unit with as little as 3.5% down using FHA financing. That gap is a big deal and a big reason so many people start there.
And honestly, house hacking fits your situation really well. Since you don’t already own a home, you’ve got the flexibility to go straight into a small multifamily, live in one unit, and let the other units offset your mortgage. You’re building equity, getting into the game, and learning how to manage a property all at once.
You don’t have to do it that way, but for where you’re at, it’s one of the most efficient ways to get started. It keeps your housing cost low while the property starts working for you from day one.
Great spot to be in at 22. No debt, strong credit, and low expenses is a huge advantage.
If I were starting over, I'd seriously look at house hacking with an FHA loan. It lets you get into a duplex, triplex, or fourplex with a relatively low down payment, live in one unit, and have the others help cover your mortgage. It's one of the best ways to get your first deal done and learn the business at the same time.
That said, the real “start” is getting your income consistently higher than your expenses. That’s what gives you the ability to save, handle unexpected costs, and stay in the game long enough to build something. House hacking just accelerates that by lowering your living costs.
Big picture advice:
Keep saving and stay disciplined with expenses
Start looking at deals now and learn what rents and pricing look like
Narrow your focus to a specific property type and area
If you stay consistent and disciplined, you’ll grow over time. Try to get one meaningful thing done each year, whether that’s buying your first property, your second, or improving what you already have. You’ll look up in a decade and have a lot of options. Your 30s self will thank you.
Great spot to be in at 22. No debt, strong credit, and low expenses is a huge advantage.
If I were starting over, I'd seriously look at house hacking with an FHA loan. It lets you get into a duplex, triplex, or fourplex with a relatively low down payment, live in one unit, and have the others help cover your mortgage. It's one of the best ways to get your first deal done and learn the business at the same time.
That said, the real “start” is getting your income consistently higher than your expenses. That’s what gives you the ability to save, handle unexpected costs, and stay in the game long enough to build something. House hacking just accelerates that by lowering your living costs.
Big picture advice:
Keep saving and stay disciplined with expenses
Start looking at deals now and learn what rents and pricing look like
Narrow your focus to a specific property type and area
If you stay consistent and disciplined, you’ll grow over time. Try to get one meaningful thing done each year, whether that’s buying your first property, your second, or improving what you already have. You’ll look up in a decade and have a lot of options. Your 30s self will thank you.
Thank you for you advice. I will definitely start looking at deals and learning what rent looks like in my ideal area. Thanks for the start!
Hi! I’m 22 and interested in real estate. I understand wealth build slowly so I’m not rushing into buying right now just trying to gather information. Just curious on where you guys started or would start. I just got out of debt, saving, stay with my parents so no real bills yet, and credit score a 760+ with credit history. I’m mainly focused on multi family home such as duplex triplex or 4 unites.
Questions: How much of a down payment do you have to have to start or get loans? Do you have to house hack starting out? Where would you start or Just any tips would help!
You are in an excellent position. You can buy up to a 4plex with an FHA loan and 3.5% down. Some of the rents already there go towards qualifying for the loan. Live in one unit and rent the rest. DO NOT tell anyone you are the owner or the property manager. Be a friend of the property manager if you get stuck. Have everyone pay online. Then after you're ready to buy another, do a cash out refi or just buy one via a DSCR.
Hi! I’m 22 and interested in real estate. I understand wealth build slowly so I’m not rushing into buying right now just trying to gather information. Just curious on where you guys started or would start. I just got out of debt, saving, stay with my parents so no real bills yet, and credit score a 760+ with credit history. I’m mainly focused on multi family home such as duplex triplex or 4 unites.
Questions: How much of a down payment do you have to have to start or get loans? Do you have to house hack starting out? Where would you start or Just any tips would help!
You are in an excellent position. You can buy up to a 4plex with an FHA loan and 3.5% down. Some of the rents already there go towards qualifying for the loan. Live in one unit and rent the rest. DO NOT tell anyone you are the owner or the property manager. Be a friend of the property manager if you get stuck. Have everyone pay online. Then after you're ready to buy another, do a cash out refi or just buy one via a DSCR.
Hi! I’m 22 and interested in real estate. I understand wealth build slowly so I’m not rushing into buying right now just trying to gather information. Just curious on where you guys started or would start. I just got out of debt, saving, stay with my parents so no real bills yet, and credit score a 760+ with credit history. I’m mainly focused on multi family home such as duplex triplex or 4 unites.
Questions: How much of a down payment do you have to have to start or get loans? Do you have to house hack starting out? Where would you start or Just any tips would help!
You are in an excellent position. You can buy up to a 4plex with an FHA loan and 3.5% down. Some of the rents already there go towards qualifying for the loan. Live in one unit and rent the rest. DO NOT tell anyone you are the owner or the property manager. Be a friend of the property manager if you get stuck. Have everyone pay online. Then after you're ready to buy another, do a cash out refi or just buy one via a DSCR.
Ok so I was in a really similar spot about a year and a half ago. 29 not 22 lol but same energy, saving up, decent credit, no idea where to start. I ended up going the FHA route on my first one, 3.5% down on a single family in Birmingham. That low down payment was the only reason I could actually make it happen on my income.
The one thing I wish someone had told me is how much the stuff after closing adds up. Like I budgeted for the down payment and closing costs but then there were repairs the first month, and setting aside reserves for vacancy and maintenance, and all of that eats into what you think your cash flow is going to be. I'm not saying don't do it, I'm saying just budget more than you think you need to going in.
You're in a better spot than I was honestly. No debt and living at home means you can stack cash faster than most people. If I could go back I would have saved a bigger cushion before I closed.
You're in a genuinely strong position at 22 — no debt, saving, 760+ credit, and patient enough not to rush. That combination is rarer than you think.
To answer your questions directly:
On down payment — for a conventional loan on a 2-4 unit property you're typically looking at 20-25% down. However if you house hack (live in one unit, rent the others) you can use FHA financing with as little as 3.5% down. That's a massive difference on a $300-400k property.
On house hacking — you don't have to, but at 22 living with parents it's honestly the single best first move in real estate. You reduce your personal living costs to near zero while tenants pay down your mortgage. It's the fastest legal wealth accelerator for someone in your exact situation.
On where to start — before you look at a single listing, get pre-approved for an FHA loan so you know your real budget. Then pick one market and learn it deeply. Don't jump between cities and strategies.
One thing I'd add — at your stage the biggest risk isn't making a bad deal. It's analysis paralysis. Give yourself a deadline: 'I will make my first offer within 6 months.' Then work backwards from that.
What market are you in? That changes a lot of the specifics.
It looks like you have a very good setup for yourself. The 760 credit score and the low cost of living are precisely what people start out with. With the minimum of 3.5% required down, you could move into a 2 to 4 unit property through an FHA loan. From my experience, this tends to be the best method to start out.
You’re in a great spot, but instead of waiting and trying to save for a down payment right away, I’d start with wholesaling to learn the game and generate cash without needing to buy anything yet, because it teaches you how to find deals, talk to sellers, and understand value which is way more important than jumping straight into ownership, so focus first on finding distressed or motivated sellers, locking up deals at a discount, and assigning them to cash buyers for a fee, then use that money and experience to move into duplexes or small multifamily later, because the biggest mistake beginners make is sitting on the sidelines trying to learn everything before taking action when in reality you should be having conversations, making offers, and building confidence now, and once you stack some deal money you can decide if house hacking or traditional buying makes sense, but starting with wholesaling gives you speed, reps, and income without needing your own capital.
Hi! I’m 22 and interested in real estate. I understand wealth build slowly so I’m not rushing into buying right now just trying to gather information. Just curious on where you guys started or would start. I just got out of debt, saving, stay with my parents so no real bills yet, and credit score a 760+ with credit history. I’m mainly focused on multi family home such as duplex triplex or 4 unites.
Questions: How much of a down payment do you have to have to start or get loans? Do you have to house hack starting out? Where would you start or Just any tips would help!
Hey Kyah, first off you’re in a really strong position already at 22 with no debt, solid credit, and low expenses, so you’re actually ahead of where most people start. For down payments, it depends on the loan type—traditional owner-occupied loans can go as low as around 3–5% down if you’re house hacking a 2–4 unit, while investment-only properties are usually more like 15–25% down, so that’s why a lot of beginners start with house hacking. You don’t technically have to house hack, but it’s one of the easiest ways to get started because it lowers your entry cost and helps you qualify for better financing since lenders see it as lower risk when you live in one of the units. If I were starting from your exact spot, I’d focus on a small multifamily in a solid, landlord-friendly market, run the numbers carefully to make sure rent covers most of the mortgage, and just get that first deal done more for experience than perfection. The biggest tip honestly is don’t wait for the “perfect” property or timing—your first deal is mostly about learning how everything works in real life, not maximizing every dollar.
