Investing in RE while stuck in a rental lease?

Question

Hello Everybody,

Here is my situation,

I am very eager to jump into REI however I just signed a 15 month rental lease with my girlfriend.  Do you think it is a good idea to try and pursue long term buy and hold rental properties while still paying $600/month in rent?  Or would it be wise to wait until the lease is up and have my next residence be a house hack so I will not have the added stress of having a fixed rental payment on top of a mortgage payment etc. ?

I am 22 years old with about 30k in savings. I am currently looking to invest in the Cincinnati/Dayton, Ohio market (where I currently live).

Any advice is greatly appreciated.

Thank you,

Jordan

Ryan Evans · Answer

You've probably got more saved than 99% of 22 year-olds so you I'd say you might as well get started. Renting just means you've got more money to invest with. And if you find a good duplex or something you can house hack while you're still on the lease you can always find a way out of the lease. That might mean you're out a month or two of rent, or you might be able to sublease as well depending on the situation.

Just don't burn all your savings on the first property so you've got some cushion for the unexpected things that will inevitably pop up :)

Thomas S. · Answer

Go ahead and start now if you have the cash or use the 15 months to save the maximum you can to invest. Your choice, either works.

Renting is the least expensive form of housing you can have.  Your savings power will be greater while renting and you can house hack down the road.

Being a renter/investor is the best possible scenario.