Should I invest in a multifamily?

8 Replies

I am 22 years old and I make $31,000 a year and have about $12,000 in debt...I've been reading a lot of blogs and articles and I think I want to start investing but I'm not sure if its right for me in my financial situation. Any help and advice would be much appreciated. :) 

Mercedez Matos It's up to you to decide whether you are ready financially or not. When you think you are there are so many ways to make money out there. I invest in cash flow properties where I make $200-$250 of each property a month after all expenses paid. Areas like the Midwest and The South are great for this type of investing and require small amount of hard cash to get started. Others invest for appreciation but depending on the market it can be expensive to get your foot in the door. Some flip homes but if your not experienced in this then it's probably going to be more of a headache for you. And the some just talk a lot and never really pull the trigger :). The fact that your thinking about it at such an early age definitely says something. Good luck with whatever you decide to do. Take care

@Mercedez Matos

Welcome to REI. Glad to hear that you are doing well. It is great that you wanna invest and I think you are on the right path.

If it were me, I would FHA, VA, etc..; whatever applicable program is relevant and purchase a duplex, Tri, Quad. Additionally, I would get a mentor, attend your local REIA's (if your not already doing that) read your local tenants rights and landlords responsibilities manual.

Naturally, this will be a owners occupied situation. So, you will, most optimally, will be living for "free".

Originally posted by @Account Closed :

I am 22 years old and I make $31,000 a year and have about $12,000 in debt...I've been reading a lot of blogs and articles and I think I want to start investing but I'm not sure if its right for me in my financial situation. Any help and advice would be much appreciated. :) 

 Hey Mercedez,

You should venture into which ever stream you feel comfortable. I would learn as much as I can prior to venturing into any investment opportunity. You can start with wholesaling minimal investment.

Good luck!

I agree with the above suggestions  about an owner occupied multifamily! It's a great way to get started investing and lower your living expenses at the same time. You may need to get rid of that debt before you can qualify for a loan. Check out the Mr. Money Mustache blog for an eye-opening and different perspective on personal finance... good for anyone, but especially powerful for young people

I definitely agree with the 'house hacking' route. Which is buy a diplex , triplex or quad and live in one unit. I am 21 years old, make about 30,000 a year and have about 10,000 in debt so I'm really close to your situation! I would also recommend you read the book on investing in real estate with no money down by @brandon turner.  That helped me find a way to do it! Good luck and can't wait to read your success story!