What would you do with 50k?

Question

So as an 18 year old I have the opportunity to go through a 2 year program then receive a 50,000$ signing bonus plus pay. I will also have a VA loan from the air national guard and tri-care for extremely reduced price health care.

With this I have the chance to save lots of money, house hack every year with the VA loan and invest with my signing bonus.

My biggest question would be what to do with the signing bonus. I definitely want to house hack triplex or 4plex for a year then turn them into rentals. What would you do with the bonus? Should I try to pay down a property as soon as possible or spread it out with traditional 20% down payments?

Melissa Justice · Answer

@Luke Mertz,

Hey Luke! You are in a really great position.

If it were me, I’d keep the bonus liquid and use it strategically:

• Use the VA loan for your first house hack (no down payment, live for cheap).
• Then, when you move out, use part of the bonus for the next property - maybe a small multifamily or single-family in a cash-flow market.
• Avoid dumping it all into one property; spread it across multiple deals or reserves to stay flexible.

Also keep a solid emergency fund and maybe allocate a small chunk toward personal development (real estate education, networking, etc.). That combo will compound fast.

Always happy to chat more about what's worked for other investors. Best of luck!

Joshua Hardin · Answer

Hey Luke — first off, respect, brother. At 18, you’re already thinking ownership and legacy while your peers are still figuring out weekends. That’s a solid foundation right there. 👏

Let me give it to you straight — that signing bonus isn’t always the lump-sum payday recruiters make it sound like. In most cases, it’s disbursed in increments, tied to time-in-service or training milestones. So before planning where to invest it, confirm how and when you’ll actually receive those funds. That’ll change the whole strategy.

Now here’s the part most folks skip — your first mission isn’t “how do I make $50K grow,” it’s “how do I build the man who can multiply $50K ten times over.”

House hacking can be great, but don’t rush to throw money at a triplex just because it sounds smart on paper. Learn to analyze deals, understand cash flow vs equity, and get your VA loan strategy airtight. You’ll thank yourself later when the excitement fades and systems take over.

If you really want to get creative, start looking at equity partnerships — maybe there’s a homeowner in distress, a veteran family struggling to keep their property, or a small multifamily owner looking to exit. Instead of buying at retail, partner through service. Bring your skills, discipline, and reliability to the table — not just cash. That’s where real wealth (and impact) is built.

Here’s my short list for you:

• Confirm the payment schedule and tax implications of your bonus.
• Educate yourself — BiggerPockets podcasts, books, and forums will save you from most rookie mistakes.
• Network intentionally — find a local investor or vet who’s walked this path.
• Serve first, invest second. The ROI on relationships outpaces any duplex flip.

You’ve got time, resources, and a mindset that’s already miles ahead. Use this phase to sharpen your tools. The assets will follow.

Keep pushing forward, brother — your service will outlast your rank.

– Joshua “Sarge” HardinVeteran | Real Estate Investor | Legacy Builder

Aaron Zimmerman · Answer

I would put down as little possible and make sure the property cash flows after you're done house hacking. I would also make sure to have PLENTY of reserves.

There are down payments that are 3.5 or 5% down. The va loan has 0% options as well that can be explored and should be utilized if possible

Elealeh Fulmaran · Answer

Congrats on setting yourself up right this early. I’d use the bonus to buy control and momentum: keep most as reserves and deployment capital, then 1) house hack a 3–4 unit with your VA loan at minimal down, 2) invest the bonus into smart upgrades that raise rents and durability, 3) build a 6–12 month cash buffer, and 4) save a slice to tee up the next VA house hack when eligible. Don’t rush to pay down principal early on; leverage cheap VA financing to stack doors, then shift to stabilization and targeted debt paydown once you’ve got a few units cash flowing.

Rik Hunter · Answer

All great advice from Joshua! Those 4 steps make so much sense in your situation. Once you get your first deal, you'll feel much more confident in your decision-making because so many things can go sideways or upside-down. You'll feel like you can be proactive rather than reactive.

William Thompson · Answer

That’s an incredible position to be in at 18 — you’re setting yourself up way ahead of the curve.

If I were in your shoes, I’d treat that $50K signing bonus as your seed capital, not something to “spend” but to leverage smartly.

Here’s a framework I’d consider:

• Keep your VA loan for the house hack — 0% down, low interest, and no PMI means your cash stays liquid.
• Use part of the bonus for reserves — 6–12 months of expenses (both personal + property). It’s not sexy, but it keeps you in the game if something goes sideways.
• Invest the rest strategically — Once you’ve stabilized your first property, look at using the remaining cash for your next deal’s down payment or small rehabs to add value.
• Avoid rushing to pay off debt early — At your age and interest rates this low, compounding growth and leverage will outpace the guaranteed “return” from paying off a mortgage early.

You’re thinking like a real investor already. The key now is structure + tax strategy — that’s where a lot of your long-term wealth gets locked in.

If you’d like, I can show you how some of my younger clients set up their first deals tax-smart from day one — want me to walk you through it?

Ken M. · Answer

Using Creative Financing To Buy "Off Market" with "Subject To" and "Wraps"

G. Brian Davis · Answer

Way to start young @Luke Mertz!

After house hacking, I would invest by spreading $5-10K at a time across new investments each month as a form of dollar cost averaging. This is how I invest my own money, as a member of the co-investing club.

You get the benefit of having dozens of other investors on a video call with you, all vetting the risk together. We meet once or twice a month to vet new investments, and members can go in with $5K or more if they so choose.

When I was in my 20s, I used to buy rentals using the BRRRR method. It was a massive amount of work and came with a lot of risk. I wish I'd started investing smaller amounts in passive real estate investments earlier in my life.

Henry Lazerow · Answer

Congrats and for sure do a house hack. Look for 4 units in your market. I find 4 units to cash flow best but every area is different and some markets 2s can also work.

What would you do with 50k?

Most Popular Reply