New To RE Investing - Looking to learn anything I can!
Member since 2026 · 1 post · 8 votes
New To RE Investing - Looking to learn anything I can!
Most Popular Reply
Bernice RetzloffPro Member
Memphis, TN · Member since 2024 · 234 posts · 100 votesHey @Malcolm Doster, Jr.! You’re in a fantastic position. At 22 with a strong income, low expenses, and already investing in index funds, you’ve built the right foundation. Don’t abandon that! Keep maxing your retirement accounts and letting compounding do its thing. Real estate should be an addition to your strategy, not a replacement.
To avoid overwhelm, keep your first move simple. You don't need to master every strategy right now. Focus on understanding how to analyze a rental properly. Cash flow, CapEx, vacancy, management, and conservative underwriting. If you can confidently evaluate a deal, you're already ahead of most beginners.
If you’re open to out-of-state investing, Memphis is a market worth considering. It offers strong rent-to-price ratios, landlord-friendly laws, and steady rental demand. Many newer investors start there because the entry prices are still relatively approachable compared to coastal markets, while cash flow is realistic if you buy right.
I’m a real estate agent based in Memphis and work closely with out-of-state investors building long-term rental portfolios here. If you ever want to see what deals look like in this market or walk through real numbers, I’d be happy to share insights and help however I can.
You’ve got time, discipline, and income on your side. That’s a powerful combination. The key now is taking a thoughtful first step rather than trying to perfect everything upfront.
23 Replies
- Lender · Boston, MA · Member since 2021 · 125 posts · 64 votes8mo
Welcome! Any specific strategies or goals in mind?
- 7moAshish AcharyaBusiness MemberCPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
@Malcolm Doster, Jr. Hey Malcolm, you’re honestly in a great spot and it’s smart you’re thinking about this now. From a tax perspective, your biggest advantage isn’t just your income, it’s that you have flexibility. Real estate lets you use deductions and depreciation to lower taxable income in ways index funds can’t, especially while you’re early and learning. I’d focus on a simple first deal like a house hack or small rental and use it to understand how the tax side actually works rather than trying to do something flashy. If you build with tax efficiency in mind from the start, you’ll be way ahead long term. You’re asking the right questions early.
INVESTOR FRIENDLY CPA®5241 Reviews - 7moJay TolugantiPro MemberInvestor · Clearwater, FL · Member since 2025 · 226 posts · 79 votes
Hey Malcolm, for you to build strong foundation, here are my recimmended books for you to read/listen. These books cover the fundamentals of REI and most of the content creators recycle the concepts from these:
Strategy:
Rich man in Babylon
Robert Kiosaki
- Rich Dad Poor Dad
- Cashflow Quadrant
- Guide to investing
- Real book of Real Estate
Real Estate Journey:
Ken McKelroy
- ABCs of Real Estate Investing
- Advanced book of Real Estate Investing
- ABC of Property management
- 7moBernice RetzloffPro MemberMemphis, TN · Member since 2024 · 234 posts · 100 votes
Hey @Malcolm Doster, Jr.! You’re in a fantastic position. At 22 with a strong income, low expenses, and already investing in index funds, you’ve built the right foundation. Don’t abandon that! Keep maxing your retirement accounts and letting compounding do its thing. Real estate should be an addition to your strategy, not a replacement.
To avoid overwhelm, keep your first move simple. You don't need to master every strategy right now. Focus on understanding how to analyze a rental properly. Cash flow, CapEx, vacancy, management, and conservative underwriting. If you can confidently evaluate a deal, you're already ahead of most beginners.
If you’re open to out-of-state investing, Memphis is a market worth considering. It offers strong rent-to-price ratios, landlord-friendly laws, and steady rental demand. Many newer investors start there because the entry prices are still relatively approachable compared to coastal markets, while cash flow is realistic if you buy right.
I’m a real estate agent based in Memphis and work closely with out-of-state investors building long-term rental portfolios here. If you ever want to see what deals look like in this market or walk through real numbers, I’d be happy to share insights and help however I can.
You’ve got time, discipline, and income on your side. That’s a powerful combination. The key now is taking a thoughtful first step rather than trying to perfect everything upfront.
- Real Estate Broker · Indianapolis, IN · Member since 2026 · 21 posts · 11 votes7mo
Hi Malcom!
Welcome to BiggerPockets!
If you want less noise and better numbers, look outside DC and buy in a cash flow market while you keep your engineering job there.
At 22 with high income and low expenses you are in a rare spot. A quick check. In Indianapolis you can still find solid rentals around 140k to 180k that rent for 1400 to 1600. On a 160k purchase with 20 percent down your payment with taxes and insurance might be around 1100 to 1200. After 8 percent management and 10 percent maintenance you can still clear a couple hundred a month and build reserves fast.
I work with a lot of out of state investors who want steady long term rentals in the Midwest and focus heavily on deal analysis up front so there are no surprises. First step is pick a target price range and rent range and run a few sample deals until the math clicks.
Are you more focused on appreciation or monthly cash flow and what kind of capital are you looking to deploy on your first deal?
Best,
~Brooke Newport
- Lender · Marlboro, NJ · Member since 2025 · 243 posts · 150 votes7mo
The biggest advantage you have right now isn’t capital, it’s time and flexibility. My advice is to keep it simple at the start. Instead of trying to learn every strategy at once, pick one lane and go deep. For most high-income W-2 earners, that’s either:
• House hacking a small multifamily
• Buying a stable 2–4 unit in a landlord-friendly market
• Or partnering on a deal to learn operations without carrying everything yourselfAvoid heavy rehabs or complex creative structures on your first deal. The goal of deal one isn’t to get rich. It’s to execute cleanly, learn, and build confidence.
Also, reverse engineer your goals. Do you want long-term appreciation, or are you aiming for cash flow that replaces income? That decision will shape everything from market selection to asset type. You’re already investing in index funds, which tells me you understand patience and compounding. Real estate works the same way. One solid acquisition done right will teach you more than 100 podcasts.
What markets are you considering?
- 7moEthan HaiglerBusiness MemberReal Estate Agent · Charlotte, NC · Member since 2019 · 111 posts · 58 votes
@Malcolm Doster, Jr. if you’d have time, let’s jump on a phone call. I’m an out of state investor myself, an agent, a wholesaler, and a private lender for real estate. DM me and I’d be happy to talk through strategies and information
- Member since 2019 · 41 posts · 22 votes7moHi Malcom, I’m a little older than you but just went through my first purchase for an investment property. I sent you a connection request, I’d be happy to chat out my experience and hear more about what you’re interested in doing.
- Realtor · OH · Member since 2026 · 122 posts · 77 votes7mo
Hi Malcom, you're in a strong position at 22—high income, low expenses, and already investing. The overwhelm is normal. The key is to simplify and pick one strategy instead of trying to learn everything at once.
For most beginners with solid W-2 income, a house hack or small long-term rental is a smart first move. Focus on mastering:
-
Deal analysis (cash flow, CoC, DSCR)
-
Financing options
Your local market fundamentals
Move intentionally, not fast. Strong underwriting and patience build wealth—not hype.
-
- 7moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @Malcolm Doster, Jr.:
Hi all,
I hope this message finds you well. My name is Malcolm, I'm a recent college grad turned full time engineer. At 22 years old, I'm uniquely positioned as a high income earner with very few monthly expenses. I'm a long time investor into low-cost index funds and ETFs, actively looking to get a head start on wealth building. I'm entirely new to the real estate investing space, and honestly a bit overwhelmed from the amount of information out there. However, I'm ambitious and laser focused on building my future with a strong work ethic. I'm always open ears and eager to learn from more experienced investors who'd be willing to share any insights or impart any wisdom from their past experiences.
Best regards,
Malcolm
You’re ALWAYS better off investing locally, where it’s easier to:
- Learn the market
- Network to find deals
- Network to find contractors
- Be more hands-on
- Driveby property to keep tabs on it
- Network to find a decent Property Management Company (PMC)
Next best location is somewhere else you lived, where you have an existing network of family & friends to help you as accomplish the above list as needed.
If you invest OOS, your biggest challenge won't be finding properties to meet your goals on paper, it’ll be successfully outsourcing all of the above.
The biggest mistake we see OOS investors making in our market, over and over again, is not fully understanding Neighborhood/Property/Tenant Classes and how they impact your probability of success!
They all run their ROI numbers assuming Class A results – when buying Class B, C & even D rentals.
Then they’re shocked when their performance expectations aren't met😞
If you choose to invest OOS, and have little to no landlord experience, we highly recommend targeting Class B Neighborhoods/Properties/Tenants. If you target Class C, you better be prepared emotionally & financially for plenty of challenges.
You can find Class B properties in the Midwest to BRRRR, but it will take more digging and YOU will need to understand how to analyze & identify them - because a lot of agents, wholesalers, PMCs, etc. will try to sell you Class C or D misrepresented as Class B:
- Many of them don't know/care what Class the properties are, so they're incompetent.
- Others know exactly what they are doing, so should be labeled as crooks!
EITHER WAY YOU LOSE!
Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class will affect what type of contractors, handymen and property management companies you should target and be willing to deal with a property.
The Property Class will also impact the maintenance & renovations you do to, “Maintain to the Neighborhood”.
Why is that important?
Well, if you buy & renovate a property in Class D area to Class A standards, what Tenant Class will actually rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met, and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
- Property Tenant Pool: closely linked to location, but not always.
- Property Location: closely linked to tenant pool, but not always.
- Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.
Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.
Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
Metro Detroit has 132 cities, the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying. Check out the map on our website where we’ve made this all easy to follow.
We can also share numerous examples of properties & portfolios we’ve assisted investors with!
DM us if you’d like to discuss this logical approach in greater detail!
Horror Stories from those that did NOT Understand What they were Buying:
https://www.biggerpockets.com/forums/48/topics/1137397-baltimore-a-path-to-never-ending-pain
https://www.biggerpockets.com/forums/432/topics/1231840-sell-at-a-loss-or-rent-at-a-loss
https://www.biggerpockets.com/forums/311/topics/840134-memphis-turnkey-tenant-turnover-costs
https://www.biggerpockets.com/forums/963/topics/1195280-experience-of-oos-investing-in-cleveland-after-15-years
Logical Property Management4.9459 Reviews - 7moKerlous TadresBusiness MemberRealtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
@Malcolm Doster, Jr., I’d recommend starting with one simple “boring” rental in a strong demand area (ideally a duplex where you can live in one side). From my experience, spend 30 days touring deals and talking to one lender and one property manager so you learn real rents, costs, and what actually cash flows before you buy.
Kerlous Tadres | Reafco Real Estate540 Reviews - Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes7moThe next question is do you want to do what everyone else has done to achieve their results or are you the "creative" type that wants to go beyond? Some engineers build sewer systems, some engineers build airplanes. Both practical, both necessary, but one is more profitable than the other.
Quote from @Malcolm Doster, Jr.:
Hi all,
I hope this message finds you well. My name is Malcolm, I'm a recent college grad turned full time engineer. At 22 years old, I'm uniquely positioned as a high income earner with very few monthly expenses. I'm a long time investor into low-cost index funds and ETFs, actively looking to get a head start on wealth building. I'm entirely new to the real estate investing space, and honestly a bit overwhelmed from the amount of information out there. However, I'm ambitious and laser focused on building my future with a strong work ethic. I'm always open ears and eager to learn from more experienced investors who'd be willing to share any insights or impart any wisdom from their past experiences.
Best regards,
Malcolm
- Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes7mo
Hey Malcolm,
My biggest advice: start small and don’t rush. Real estate is very different from index funds and ETFs; it’s more hands-on and the learning curve is real. Focus on mastering the fundamentals first.
To accelerate your growth, get out and network with investors, agents, and lenders in your area. Pay attention to how they analyze deals and how they think through risk.
Once you’ve built that foundation, start speaking with a few lenders to understand your numbers. Knowing what you can comfortably qualify for will help you define your buy box, narrow your target locations, and align your investment goals with reality. - 7moJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Malcolm Doster, Jr.:
Hi all,
I hope this message finds you well. My name is Malcolm, I'm a recent college grad turned full time engineer. At 22 years old, I'm uniquely positioned as a high income earner with very few monthly expenses. I'm a long time investor into low-cost index funds and ETFs, actively looking to get a head start on wealth building. I'm entirely new to the real estate investing space, and honestly a bit overwhelmed from the amount of information out there. However, I'm ambitious and laser focused on building my future with a strong work ethic. I'm always open ears and eager to learn from more experienced investors who'd be willing to share any insights or impart any wisdom from their past experiences.
Best regards,
Malcolm
Hey Malcolm, welcome to BiggerPockets! First off, it’s awesome that you’re thinking about diversifying into real estate so early, especially with a strong income and low expenses—that gives you a huge advantage. Since you’re just starting out, focus on learning the basics of cash flow, the 1% rule, and how to analyze deals, and don’t feel like you need to absorb everything at once. One strategy that’s worked really well for me is starting in a market with strong fundamentals, like Columbus, Ohio, where I moved from Portland, Oregon in 2020 and now own 10+ rentals; it’s a market with growing population, strong job growth, and tons of major companies moving in, plus you can still find properties that cash flow right away and hit the 1% rule. Pairing that with building a solid local team—good agents, property managers, and contractors—can make the learning curve much smoother. The key is to start small, focus on cash flow first, and let appreciation and equity build over time. Happy to connect and answer any questions you have!
Jimmy Lieu, Red 1 Realty4.9120 Reviews - 7moRemington LymanBusiness MemberReal Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
Quote from @Malcolm Doster, Jr.:
Hi all,
I hope this message finds you well. My name is Malcolm, I'm a recent college grad turned full time engineer. At 22 years old, I'm uniquely positioned as a high income earner with very few monthly expenses. I'm a long time investor into low-cost index funds and ETFs, actively looking to get a head start on wealth building. I'm entirely new to the real estate investing space, and honestly a bit overwhelmed from the amount of information out there. However, I'm ambitious and laser focused on building my future with a strong work ethic. I'm always open ears and eager to learn from more experienced investors who'd be willing to share any insights or impart any wisdom from their past experiences.
Best regards,
Malcolm
When I was your age I did a house hack! Now I am 31 and have over 100 doors. The last few years I started investing in commercial triple net leases.
- Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes7moYour comments "I'm a recent college grad" and "Now I am 31" are non sequitur. What might be useful to him is how you found & financed "100 doors." in 8 or 9 years, since lenders limit you to 5 houses typically and then you have to go to other sources for money.
Quote from @Remington Lyman:
Quote from @Malcolm Doster, Jr.:
Hi all,
I hope this message finds you well. My name is Malcolm, I'm a recent college grad turned full time engineer. At 22 years old, I'm uniquely positioned as a high income earner with very few monthly expenses. I'm a long time investor into low-cost index funds and ETFs, actively looking to get a head start on wealth building. I'm entirely new to the real estate investing space, and honestly a bit overwhelmed from the amount of information out there. However, I'm ambitious and laser focused on building my future with a strong work ethic. I'm always open ears and eager to learn from more experienced investors who'd be willing to share any insights or impart any wisdom from their past experiences.
Best regards,
Malcolm
When I was your age I did a house hack! Now I am 31 and have over 100 doors. The last few years I started investing in commercial triple net leases.
Were you born rich? have a rich uncle? bought $15,000 houses in a tough neighborhood with lots of problems? have a partner? are part owner in two apartment buildings that have 50 doors each? or super, super smart? Inquiring minds want to know.
We don't want to discourage all the people who have been at it for umpteen years, only have 3 houses, and live in San Diego where houses are really, really expensive with no problems
My point is, all you lurkers, there is context to everything in real estate.
Congratulation @Remington Lyman: on dong so well, how ever it's defined. - 7moRemington LymanBusiness MemberReal Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
Quote from @Ken M.:
Your comments "I'm a recent college grad" and "Now I am 31" are non sequitur. What might be useful to him is how you found & financed "100 doors." in 8 or 9 years, since lenders limit you to 5 houses typically and then you have to go to other sources for money.Quote from @Remington Lyman:
Quote from @Malcolm Doster, Jr.:
Hi all,
I hope this message finds you well. My name is Malcolm, I'm a recent college grad turned full time engineer. At 22 years old, I'm uniquely positioned as a high income earner with very few monthly expenses. I'm a long time investor into low-cost index funds and ETFs, actively looking to get a head start on wealth building. I'm entirely new to the real estate investing space, and honestly a bit overwhelmed from the amount of information out there. However, I'm ambitious and laser focused on building my future with a strong work ethic. I'm always open ears and eager to learn from more experienced investors who'd be willing to share any insights or impart any wisdom from their past experiences.
Best regards,
Malcolm
When I was your age I did a house hack! Now I am 31 and have over 100 doors. The last few years I started investing in commercial triple net leases.
Were you born rich? have a rich uncle? bought $15,000 houses in a tough neighborhood with lots of problems? have a partner? are part owner in two apartment buildings that have 50 doors each? or super, super smart? Inquiring minds want to know.
We don't want to discourage all the people who have been at it for umpteen years, only have 3 houses, and live in San Diego where houses are really, really expensive with no problems
My point is, all you lurkers, there is context to everything in real estate.
Congratulation @Remington Lyman: on dong so well, how ever it's defined.I got to 100 doors by starting off doing house hacks. How is that a non sequitur?
- Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes7moYou said you're 31, most people get out of college and start accumulating at about 21or 22.
Quote from @Remington Lyman:
Quote from @Ken M.:
Your comments "I'm a recent college grad" and "Now I am 31" are non sequitur. What might be useful to him is how you found & financed "100 doors." in 8 or 9 years, since lenders limit you to 5 houses typically and then you have to go to other sources for money.Quote from @Remington Lyman:
Quote from @Malcolm Doster, Jr.:
Hi all,
I hope this message finds you well. My name is Malcolm, I'm a recent college grad turned full time engineer. At 22 years old, I'm uniquely positioned as a high income earner with very few monthly expenses. I'm a long time investor into low-cost index funds and ETFs, actively looking to get a head start on wealth building. I'm entirely new to the real estate investing space, and honestly a bit overwhelmed from the amount of information out there. However, I'm ambitious and laser focused on building my future with a strong work ethic. I'm always open ears and eager to learn from more experienced investors who'd be willing to share any insights or impart any wisdom from their past experiences.
Best regards,
Malcolm
When I was your age I did a house hack! Now I am 31 and have over 100 doors. The last few years I started investing in commercial triple net leases.
Were you born rich? have a rich uncle? bought $15,000 houses in a tough neighborhood with lots of problems? have a partner? are part owner in two apartment buildings that have 50 doors each? or super, super smart? Inquiring minds want to know.
We don't want to discourage all the people who have been at it for umpteen years, only have 3 houses, and live in San Diego where houses are really, really expensive with no problems
My point is, all you lurkers, there is context to everything in real estate.
Congratulation @Remington Lyman: on dong so well, how ever it's defined.I got to 100 doors by starting off doing house hacks. How is that a non sequitur?
I dunno, it just stuck me funny the way it was presented. :-) - 7moRemington LymanBusiness MemberReal Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
Quote from @Ken M.:
You said you're 31, most people get out of college and start accumulating at about 21or 22.Quote from @Remington Lyman:
Quote from @Ken M.:
Your comments "I'm a recent college grad" and "Now I am 31" are non sequitur. What might be useful to him is how you found & financed "100 doors." in 8 or 9 years, since lenders limit you to 5 houses typically and then you have to go to other sources for money.Quote from @Remington Lyman:
Quote from @Malcolm Doster, Jr.:
Hi all,
I hope this message finds you well. My name is Malcolm, I'm a recent college grad turned full time engineer. At 22 years old, I'm uniquely positioned as a high income earner with very few monthly expenses. I'm a long time investor into low-cost index funds and ETFs, actively looking to get a head start on wealth building. I'm entirely new to the real estate investing space, and honestly a bit overwhelmed from the amount of information out there. However, I'm ambitious and laser focused on building my future with a strong work ethic. I'm always open ears and eager to learn from more experienced investors who'd be willing to share any insights or impart any wisdom from their past experiences.
Best regards,
Malcolm
When I was your age I did a house hack! Now I am 31 and have over 100 doors. The last few years I started investing in commercial triple net leases.
Were you born rich? have a rich uncle? bought $15,000 houses in a tough neighborhood with lots of problems? have a partner? are part owner in two apartment buildings that have 50 doors each? or super, super smart? Inquiring minds want to know.
We don't want to discourage all the people who have been at it for umpteen years, only have 3 houses, and live in San Diego where houses are really, really expensive with no problems
My point is, all you lurkers, there is context to everything in real estate.
Congratulation @Remington Lyman: on dong so well, how ever it's defined.I got to 100 doors by starting off doing house hacks. How is that a non sequitur?
I dunno, it just stuck me funny the way it was presented. :-)Yeah I got my first house hack out of college. I am married now with a baby so my wife will not allow it anymore. She does not want to give up our house on the park in German Village to go back to living below our means. I might have worded it poorly. Those initial investments I did when I was in my 20s set me up to have the freedom I have now
- 7moMarc RiceBusiness MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
Quote from @Malcolm Doster, Jr.:
Hi all,
I hope this message finds you well. My name is Malcolm, I'm a recent college grad turned full time engineer. At 22 years old, I'm uniquely positioned as a high income earner with very few monthly expenses. I'm a long time investor into low-cost index funds and ETFs, actively looking to get a head start on wealth building. I'm entirely new to the real estate investing space, and honestly a bit overwhelmed from the amount of information out there. However, I'm ambitious and laser focused on building my future with a strong work ethic. I'm always open ears and eager to learn from more experienced investors who'd be willing to share any insights or impart any wisdom from their past experiences.
Best regards,
Malcolm
You're already in a strong investment position. You now just need to research a bit more before choosing any market. Happy to help!
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews - 7moSean GrahamBusiness MemberInvestor , CPA · Detroit, MI · Member since 2016 · 584 posts · 248 votes
Quote from @Malcolm Doster, Jr.:
Hi all,
I hope this message finds you well. My name is Malcolm, I'm a recent college grad turned full time engineer. At 22 years old, I'm uniquely positioned as a high income earner with very few monthly expenses. I'm a long time investor into low-cost index funds and ETFs, actively looking to get a head start on wealth building. I'm entirely new to the real estate investing space, and honestly a bit overwhelmed from the amount of information out there. However, I'm ambitious and laser focused on building my future with a strong work ethic. I'm always open ears and eager to learn from more experienced investors who'd be willing to share any insights or impart any wisdom from their past experiences.
Best regards,
Malcolm
Hi @Malcolm Doster, Jr. , great to have you here! As a fellow investor and CPA, I can tell you that your background gives you a massive edge in understanding the data-driven side of real estate.
Since you're already a high-income earner, one of the most powerful moves you can make is looking into the Short-Term Rental (STR) loophole or Real Estate Professional Status (REPS). These allow you to use "phantom" expenses like accelerated depreciation (via a cost segregation study) to offset your engineering income, effectively letting you keep more of your salary to reinvest even faster.
Hope that helps.
Maven Cost Segregation Tax Advisors554 Reviews - 7moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 939 votes
Quote from @Malcolm Doster, Jr.:
Hi all,
I hope this message finds you well. My name is Malcolm, I'm a recent college grad turned full time engineer. At 22 years old, I'm uniquely positioned as a high income earner with very few monthly expenses. I'm a long time investor into low-cost index funds and ETFs, actively looking to get a head start on wealth building. I'm entirely new to the real estate investing space, and honestly a bit overwhelmed from the amount of information out there. However, I'm ambitious and laser focused on building my future with a strong work ethic. I'm always open ears and eager to learn from more experienced investors who'd be willing to share any insights or impart any wisdom from their past experiences.
Best regards,
Malcolm
@Malcolm Doster, Jr.
With your high income and low expenses, you’re in a great spot to start building real estate wealth early. Since you’re new, I’d focus on simple, cash-flow-positive strategies, think duplexes or small multis in affordable Midwest markets. You can get solid returns without the stress of overpriced coastal markets, and it’s a great way to learn hands-on while keeping your risk manageable. Start small, lean on good property managers, and scale from there. You’ll learn a ton and set yourself up for long-term wealth. - 7moChristine LeonardBusiness MemberReal Estate Agent · Annapolis, MD · Member since 2026 · 16 posts · 4 votes
Malcolm -
Maryland is a great place to invest - there is a state law that requires sellers to pay the state taxes for any first time buyers. Let me know if you want to connect offline about any specific questions or areas.
You're really smart to get started with real estate investing at the start of your career.
All the best -
Christine
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