How early should I invest as a 20 year old?

Member since 2025 · 2 posts · 1 vote

Hello! My name is Austin and I am entering my senior year of college at University of Connecticut! I am a division 1 athlete with an interest in investing in real estate. I have some money saved up from sponsorships and other investments. How early would you suggest that I start investing in real estate and in what form do you think is best for someone graduating college soon.

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Mat O'Grady

Investor · North Stonington, CT · Member since 2014 · 393 posts · 228 votes

@Austin Brummett

Congrats on graduating from college soon. Just given the information that you provided, I would say buying a house where you can rent out rooms or a separate apartment is a great way to start.

I believe @Gowtham Yenduri graduated from UConn and he is investing in real estate. Not sure how active he is on BP, but you might be able to get some insight from someone who was in a similar position.

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Mat O'Grady
Investor · North Stonington, CT · Member since 2014 · 393 posts · 228 votes
1y
@Austin Brummett

Congrats on graduating from college soon. Just given the information that you provided, I would say buying a house where you can rent out rooms or a separate apartment is a great way to start.

I believe @Gowtham Yenduri graduated from UConn and he is investing in real estate. Not sure how active he is on BP, but you might be able to get some insight from someone who was in a similar position.

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Austin Brummett
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Member since 2025 · 2 posts · 1 vote
1y
Quote from @Mat O'Grady:

@Austin Brummett

Congrats on graduating from college soon. Just given the information that you provided, I would say buying a house where you can rent out rooms or a separate apartment is a great way to start.

I believe @Gowtham Yenduri graduated from UConn and he is investing in real estate. Not sure how active he is on BP, but you might be able to get some insight from someone who was in a similar position.

Thank you for your advice! It seems difficult to get started with little money. Do you think it is worth saving for a bit longer and investing once I have more in savings?
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Mat O'Grady
Investor · North Stonington, CT · Member since 2014 · 393 posts · 228 votes
1y
I guess it depends on how much money you have. When you said you had some money saved up, I was thinking that meant you would have enough for a down payment on an FHA loan. I believe you should be able to get one for 3.5% down.
If I were in your situation, I would think about where I want to be living and where I want to be investing in real estate. For me, it was easy. I wanted to stay in the same county that I grew up in. I knew the good and not so good areas. I found an area I felt comfortable living in and I bought a house with an FHA loan. I put 3.5% down. I was living with my wife and she didn't want to house hack, but that is a great way to get started.
Find an area you want to live in. Buy a multi-family with 3.5% down. Live in it and rent out the other units.
If you don't have enough money for 3.5% down, find a cheaper place to live and work hard to save up money. While doing that, you should research places that are good for investing. Make sure you learn the markets. Then when you have enough money for the 3.5% down, buy a place that you can live in and rent out spaces to other people.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
1y
Quote from @Austin Brummett:

I wouldn't do anything right now except continue to save and learn, because you are likely moving soon.
Lenders usually want to see two years of employment history, so you won't qualify for a loan any time soon. However, you could buy a property with seller financing. As explained in this article, seller financing works best if you understand the needs of the seller.
https://www.biggerpockets.com/blog/seller-financing
Really dig into this topic and ensure you understand it and are prepared to use it. You can purchase a primary home with seller financing, then rent out the spare rooms to generate income. After two years, you can qualify for a loan or continue working the seller-finance angle.
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Brittany MinocchiBusiness Member
Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
1y
Are you staying in that area after graduation? If so, I'd also suggest house hacking a duplex. Live in one unit for at least a year and rent out the other. This will be the lowest cost of entry with a 3.5% down payment. If that's not an option, you're looking at a minimum of 15% down for a single family investment property.
If you haven't been working, you'll want to wait until you have a 2-year employment history UNLESS the job you have after college ties into what you're going to college for.
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Samuel Eddinger
Meriden, CT · Member since 2018 · 702 posts · 501 votes
1y
Quote from @Austin Brummett:

Hello! My name is Austin and I am entering my senior year of college at University of Connecticut! I am a division 1 athlete with an interest in investing in real estate. I have some money saved up from sponsorships and other investments. How early would you suggest that I start investing in real estate and in what form do you think is best for someone graduating college soon.
Welcome. I invest, flip, and own a property management company in CT. I have an 18 year old friend who plays competitive baseball and is a beast in real estate with his mentor. If you have the drive, it is never to early to learn real estate and make a really solid living off of it. If you'd like to discuss more, DM me and we can have a conversation.
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Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
1y
@Austin Brummett
It's amazing that you're thinking about real estate investing before graduating! From my experience working with over 400 investors, starting early gives you a huge advantage in building long-term wealth. House hacking with an FHA loan is a great way to minimize living costs while building equity, or you could invest in an out-of-state rental for steady cash flow. If you're more aggressive, the BRRRR strategy can help you scale faster. Focus on networking, learning financing options, and saving up so you're ready when the right deal comes.
Good luck!
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Mathius Gazi
Rental Property Investor · New York, NY · Member since 2023 · 17 posts · 6 votes
1y
Hey Austin! I'm a college senior here in Middletown and I was exactly in your shoes last year. I ended up buying a duplex and it's been doing pretty well. Let me know if you want to meet up and talk! Also, the short answer to your question IMHO is as early you possibly can haha
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Meghan Carson
Real Estate Agent · Memphis, TN · Member since 2024 · 250 posts · 71 votes
1y
@Austin Brummett
Welcome to BP! Many experienced mentors in this group can help guide you in the right direction.

I highly recommend saving as much as possible and setting aside a hedge fund for financial security. That said, it's never too early to invest—this is actually a very smart move! If you plan to stay in your local market, house hacking with an FHA loan can be a fantastic strategy to build wealth while keeping costs low.

Congratulations on your graduation and best wishes for your future success! Looking forward to hearing about your journey a year from now
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Nick BelskyBusiness Member
Residential and Commercial Broker · Member since 2021 · 1k+ posts · 704 votes
1y
@Austin Brummett
So encouraging to hear someone so young already has the mindset! I love it! This is a great platform to watch, listen, and learn. Building confidence, a plan, and understanding your risk tolerance are all keys to success. How you will measure success is also a vital part of navigating this industry.
I am on the lending side of things and if you ever want to chat shop about financing, I am always happy to do so. Reach out anytime!
Cheers!
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Ryan AllisonPro Member
Investor · Connecticut / Massachusetts · Member since 2019 · 65 posts · 38 votes
1y
@Austin Brummett i would say do it if you plan to stick around. I would talk to a local bank or mortgage broker to see what you can get for a loan first and then go from there. Sponsorships / NIL money will definitely help for a downpayment, but a lender likely will want to see w2 income to qualify for a mortgage.
I'm a UCONN alum too - would be happy to have a talk if you want, but good for you for giving it thought this early on.
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Denise SuppleeBusiness Member
Realtor · Willow Grove, PA · Member since 2017 · 983 posts · 643 votes
1y
Congratulations Austin! I love hearing the investing enthusiasm of our youth! I started investing young so I could do what I wanted with my life. And it took me some big learning experiences, but loved the road to where I am now. I have recently, about two years ago, sold all my investment properties and now invest with a coinvesting group. I like it because I only need $5K for each deal (although I can put in more). So, I have money in vacation communities, apartment complex's, mobile home parks and even a manufacturing plant. Good luck and I wish you the BEST and much success!
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