How to start investing as a 22year old new grad

8 Replies

Hey guys ! I live in St.Louis ,Im 22 years old & im a new grad respiratory therapist although I work a great job I have been curious about real estate . I want to be able to buy, renovate, and rent properties. Im using this post to reach out to anyone who can give me financial advice as fast as saving and a few tips as a first time buyer . Thank you in advance to anyone who replies !

welcome. Im from the Lou as well.  save up that initial 20% for a conventional down payment, have another 20-30 % for repairs and emergency funds.  Contact the banks. Pick your strategy  , then go after it !

@Dymond Burnett Welcome! You can always start out by “house hacking” and first-time home buyers can put as little as 3.5% downpayment. With lower downpayments, however, it’s much more important to buy smart (buying below market value) and think of ways to add value to the property. Hope this helps!
Originally posted by @Matthew Filepp :
@Dymond Burnett Welcome! You can always start out by “house hacking” and first-time home buyers can put as little as 3.5% downpayment. With lower downpayments, however, it’s much more important to buy smart (buying below market value) and think of ways to add value to the property. Hope this helps!

 I was afraid to look at homes below market value in my area thinking that they would not attract a buyer. What kind of things should I look at when choosing a property to add value to ?

Originally posted by @Alex Young :

welcome. Im from the Lou as well.  save up that initial 20% for a conventional down payment, have another 20-30 % for repairs and emergency funds.  Contact the banks. Pick your strategy  , then go after it !

Hey neighbor! So I should find the property first, save atleast 40% to be safe, then contact banks to see what my buying options are. Also , have you had experience buying here ? 

Definitely echo the house hacking recommendations! Wish I had known about that 10 years ago when I was graduating!  Really nice having someone else cover most, if not all, of your monthly housing costs!

@Dymond Burnett You have a strategy in mind?  You bringing any skills/outlets to the table with you? (labor or licensed realtor).   I do all my flips on single family homes but over the river in Southern Illinois.   I know a lot about the saint Louis area if you have any location questions. Just shoot me a message 

@Dymond Burnett Usually the saying is that it’s better to buy the worst house in a good neighborhood than the best house in a bad neighborhood. It’s not easy but if you can find a below market value house in a good neighborhood and add value to it (turn an extra room into another bedroom for example) you should be able to make some money. It sounds like a live-in-flip could be an option for you but definitely start listening to the podcasts and get some books on flipping if that‘s what interests you- J. Scott has a great one on bigger pockets (”The book on flipping houses). Good luck to you!

Welcome to Bigger Pockets! I lived in St. Louis for 10 years but I moved to the California Bay Area around a year ago. My partner and I just started investing in St. Louis, but I really wish I had started investing while I was still living in St. Louis, so it's great that you're already thinking about getting started. I'll echo the posts above that suggested house hacking because that's the strategy I wish I had used when I still lived there. You can buy a duplex, triplex, or fourplex at 3.5% down and rent out the other units while you live in one. You just need to be confident that you can rent out the other units for at least as much as (and hopefully more than) your total property mortgage and expenses. That way, you can live rent free and save what you would have been spending on rent to buy additional properties. 

Where in St. Louis are you thinking about buying your first property?

Congratulations on getting started!