19 years old, 10k+ savings next step?

Question

Looking to make a dive into Real estate Investing ASAP, I am young but my credit is in the green I have 10k+ saved up I would like to know what would the next step be for some of you guys being in my shoes

Dan Sheeks · Answer

Hey @Michael Beauvais

Congrats to you for your ambition! If you are looking to connect with someone for some guidance or advice, feel free to reach out. I also recommend you read this article I wrote for Bigger Pockets titled How to Invest in Real Estate Before Turning 21. Once you've read it, let me know your thoughts and if you have any questions. I am a high school teacher in Colorado and I am always looking to help young people get started in real estate investing or help in any way I can. Let me know if you want to chat sometime. https://www.biggerpockets.com/

Larry Tuch · Answer

@Michael Beauvais

Congrats!  Keep saving and build credit.

Jennifer Skeen · Answer

Oh to be young again!  Congrats on getting on here and getting started, you are on your way to financial independence.  If I had this resource when I was 20 I would have kept my first little 2 bedroom townhouse and turned it into a rental, the ex husband didn't want to do that (there's a reason he's the ex ;).  I bought it for $115k back in 1999 and it would now be worth $215k with a fully paid off mortgage and $1750/month of cashflow!  So the lesson here is don't wait, get that first property under your belt and prepare to hold it long-term.  This means have a stable W-2 income stream, work on your credit score, investigate locations you like for that first 5% down FHA loan, find a property that would cash flow a bit if you weren't living in it (Mortgage, Taxes/insurance/HOA, 10% vacancy, repairs, property management), live in it for a bit, then turn it into a rental and watch the appreciation grow over the years.  Of course the other option is to house hack (property with multiple units or multiple bedrooms where you live in part of it).  Hacking wasn't an option for me, but if you can find the down payment for a larger property, it's a nice way to get a first 1-4 unit under your belt with a low-ish down payment (5% down FHA).  Good luck!

Michael Beauvais · Answer

@Matthew Tregoning

I really love your feedback, now I’ve been doing my research on the different types of loans and “$0” money down strategies when it comes to house hacking there’s a couple of options that I’ve been looking to jump into but I’d like to connect with you and talk more about house hacking

Michael Beauvais · Answer

@Dan Sheeks

I have to say, this has been one of the most helpful articles I’ve read regarding real estate investing, I would love to connect with you because I have got a plethora of questions!

Lionel Mosby Jr · Answer

@Michael Beauvais Congrats on moving on your desire to start investing in real estate! That's a big move! There are two things I would recommend you doing next: 1) Understand your financial situation in and out and 2) Research the various methods and ways of investing in real estate. Your personal situation and the strategy you are using will determine what your next steps will be. Everybody is different. So you have to know the route you're taking so you can go after it full force.

Matthew Tregoning · Answer

I don't know your whole scenario regarding your credit or income. However, "house hacking" is always a great (arguably the best) option to start!

Aaron W. · Answer

@Michael Beauvais Excited to hear you are ready to jump into real estate.

Before deciding where and what to buy, what is your why in investing in real estate? What goals do you need to accomplish your why?  For example, do you want to invest for primarily cash flow or appreciation? Are you looking for cash flow now or can it wait?  What is your appetite for rehab?

By answering these questions above, you can start getting an idea of what you should look for. Then you should look at the markets you're interested in to determine which ones will help you accomplish your why and goals. It could be none of the markets you're looking at will do it and you will need to look someplace else.

Continue educating yourself and start practicing analyzing deals now. This is a essential and perishable skill that all investors should have in their toolbelt.

Best of luck!

19 years old, 10k+ savings next step?

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