Has anyone started investing in RE while in college/early 20s?

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Has anyone started investing in RE while in college/early 20s?

Nia Laing
ATL · Member since 2019 · 11 posts · 1 vote

I'm a recent college graduate and I'm interested in getting a multi-family property where I can house hack. If you have experience with investing while young, or house hacking, would you please share your experiences/insight/advice? Thanks in advance!

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
7y

i was 24 when I flipped my first house. (It was a disaster btw)

[email protected]301-893-4635Podcast Guest on Show #192
District Invest Group546 Reviews
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  • Taylor L.
    Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    7y

    I started as a passive investor in multifamily syndications in my mid-20s. I didn't want to house hack because I seriously dislike having roommates, and duplexes to quads simply don't cash flow where I want to live.

    Best piece of advice is to learn every second you can, and don't sit on the sidelines for too long. Don't buy something dumb just to buy something, but be careful about analysis paralysis.

    2Reply
  • Yannik Cudjoe-Virgil
    Rental Property Investor · Baltimore, MD · Member since 2016 · 253 posts · 178 votes
    7y

    @Nia Laing house hacking is a great way to get started. Tenants pay for your rent. Makes sense right? Would just have to be ok potentially evicting someone next to you. Great way to get into a property with FHA financing and a low downpayment

    2Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    7y

    i was 24 when I flipped my first house. (It was a disaster btw)

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group546 Reviews
    WebsiteView Page
    3Reply
  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    7y

    @Nia Laing bought first property at 23.

    1Reply
  • Ashley KehrPro Member
    Rental Property Investor · Buffalo, NY · Member since 2017 · 206 posts · 185 votes
    7y

    @Nia Laing my sister purchased her first property at 21. A duplex. I gave her the 3.5% down payment. In return I’m on the deed with her. She is the only one named on the mortgage. The other tenant pays her mortgage and escrow. She pays water and sewer then her own utilities. Not a bad deal for her living rent and mortgage free plus building equity in the house. When she decides to move out we will split the rent proceeds from renting her unit and eventually split the sale proceeds.

    1Reply
  • John FortesPro Member
    Multi-Family Syndicator · Abington, MA · Member since 2017 · 603 posts · 347 votes
    7y

    All depends on if you are buying turnkey or rehabbing and can manage through that while living there and having tenants or room mates. I commend you on thinking this way though. 

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  • Nia Laing
    OP
    ATL · Member since 2019 · 11 posts · 1 vote
    7y

    @John Fortes thanks for the advice!

    0Reply
  • Nia Laing
    OP
    ATL · Member since 2019 · 11 posts · 1 vote
    7y

    Thanks @Yannik Cudjoe-Virgil. 

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  • Nia Laing
    OP
    ATL · Member since 2019 · 11 posts · 1 vote
    7y

    @Ashley Kehr thanks for the insight. I’m aiming to do something similar w/ a duplex. 

    0Reply
  • Account Closed
    Real Estate Agent · Cleveland, OH · Member since 2019 · 359 posts · 295 votes
    7y

    @Nia Laing Hi Nia, I invested my junior year of college in the same way, house hacking. Best decision ive ever made. My advice is to go for it, do your research, and be sure that you buy within your means. The biggest mistake I see new buyers make is buying at the limit of what theyre preapproved for.

    2Reply
  • Thomas Humke
    Member since 2019 · 2 posts · 0 votes
    7y

    @Suny Capezzuto I am looking at doing that sophmore year, as freshman are required to stay on campus first year, and was curious about some of the problems see. First is about getting the loan, how did you get the credit for it in that short a time, or does an FHA loan help with that? Another is rent, what did you do during the summers and long breaks(we get most of December off)? All I could think of was Airbnb or renting to people who have internships in the area. I would be very thankful for any insight you could give me on these.

    0Reply
  • Account Closed
    Real Estate Agent · Cleveland, OH · Member since 2019 · 359 posts · 295 votes
    7y

    @Thomas Humke FHA allows for lower credit score, higher dti, and low down so thats what i utilized. i got my 1st credit card the minute i turned 18 to help pay for school expenses so by my junior year i had 3 almost 4 yrs of credit history and i held a almost full time (30-35 hr) internship/job. i actually didnt end up renting to college kids as the duplex i bought came with a tenant that is a family so i didnt have to worry about breaks. get a student card immediately to help build your credit if you dont have one yet.

    2Reply
  • Thomas Humke
    Member since 2019 · 2 posts · 0 votes
    7y

    @Suny Capezzuto I turn 18 in about a month and plan on getting a credit card right away to start building up. I also hadn't really thought about having non-college tenants, but that makes a lot of sense. Thank you for your info

    0Reply
  • Tyler Bushey
    Investor · Biddeford, ME · Member since 2017 · 282 posts · 180 votes
    7y

    I was 26 and a full time college student and worked full time when I bought my first 3 unit

    2Reply
  • Nia Laing
    OP
    ATL · Member since 2019 · 11 posts · 1 vote
    7y

    Thanks @Account Closed !

    0Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    7y

    I was in my sophomore year of Scholl when I decided to BRRRR my first multi family property. I cashflowed on the rent and got a nice refinance check. And the house was a 9 minute bike ride from school.

    It’s an excellent way to go for a young person who doesn’t mind living with others

    0Reply
  • Steven MayBusiness Member
    Real Estate Agent · Kansas City, MO · Member since 2018 · 262 posts · 250 votes
    7y

    I recently closed on a 3 bed, 2 bath SFH. I house hack with two buddies of mine who pay my monthly mortgage. We split utilities three ways so I spend about 30-50$ a month while building equity in the property and updating it as I go. I just graduated college 2 months ago and am 23 years old but closed on the property at 22. It is possible!

    As far as how I got the loan, I had a credit card I started in high school that I used for gas and groceries -- this allowed me to build a good credit score which banks love. Secondly, I also was working quite a bit of overtime at my job in order to build W2 income and boost my recent pay stubs -- which the bank and underwriters needed to pre-approve me. I was saving as much as I could while working in order to be prepared for the down payment. I was fortunate to get a 3% down conventional loan.

    I was pre-approved for 150k, but did not want to take on that much debt for my first home so I found a home listed for 129,000 and ended up getting my 115,000 offer accepted along with closing costs covered by the seller. I was comfortable with this because I knew how much in rent I could charge my friends and what the mortgage would be and the numbers looked good. 

    Good luck!

    1Reply
  • Nia Laing
    OP
    ATL · Member since 2019 · 11 posts · 1 vote
    6y

    @Tyler Bushey and @Steven Foster Wilson, thanks for the insight!

    0Reply
  • Nia Laing
    OP
    ATL · Member since 2019 · 11 posts · 1 vote
    6y

    @Steven May thanks for your amazing feedback!! Very inspiring to see others my age doing this. 

    0Reply
  • San Eng
    Rental Property Investor · Member since 2019 · 35 posts · 4 votes
    6y

    Hi Nia, congrats to you! My daughter is 16 and she's reading the BRRRR book, LOL, with goal to buy her first 2 family this summer (with loan and help from daddy), happy to swap notes!

    0Reply
  • Nia Laing
    OP
    ATL · Member since 2019 · 11 posts · 1 vote
    6y

    @Russell Brazil what specifically made flipping your first house a disaster? 

    0Reply
  • Charlotte Dunford
    Investor · Johns Creek, GA · Member since 2017 · 463 posts · 488 votes
    6y

    I just turned 26. I started when I was 23 right after college. As soon as I got a full time job, I purchased a SFH and a duplex using my salary to qualify for financing. I quit my corporate job 9 months ago to start my own investment firm focusing on mobile home parks. 3 deals and 54 lots later, my firm has $945,000 of asset under control and rapidly expanding. The key in real estate or any business really, is to find a place where you don't need to compete like crazy and claim that as your battle ground.

    1Reply
  • Steven TaylorPro Member
    Investor · Lorain, OH · Member since 2016 · 78 posts · 47 votes
    6y

    @Nia Laing

    I bought my first place at about 20

    That was 25 years ago. Today that property is worth $160,000 and paid for by the tenants. = long term wealth

    0Reply
  • Nia Laing
    OP
    ATL · Member since 2019 · 11 posts · 1 vote
    6y

    @Charlotte Dunford Thanks for sharing inspiration and a simple, solid piece of advice! 

    @Steven Taylor Thanks for the encouragement, Steven :)

    1Reply
  • Steven TaylorPro Member
    Investor · Lorain, OH · Member since 2016 · 78 posts · 47 votes
    6y

    Glad to help 

    Go out and find a good deal and make it happen

    0Reply
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