21 Years Old w/ 25k Saved And Good Credit

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21 Years Old w/ 25k Saved And Good Credit

Andre Sanchez
Accountant · Los Angeles, CA · Member since 2018 · 7 posts · 14 votes

I have been saving for 2.5 years now  working two jobs while attending undergrad. I graduate this May with a job lined up at a Big 4, 25k saved and 3 years of building credit(760). I will be in Los Angeles so a tough/impossible market (I think). I want to start my journey in real estate investing to build wealth and generate cash flow. I’m interested in flipping, house hacking, and rentals. What would you do in my shoes?

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Account Closed
Investor · Pittsburg, CA · Member since 2018 · 11 posts · 23 votes
5y

I live in CA and I was also deciding whether to invest locally or OOS a few months back. I ended up deciding to invest OOS in Columbus, OH since the numbers just didn't make sense locally. I've been working with @Remington Lyman's team and have had positives experiences so far.

Feel free to reach out if you want to connect. Looking back, I'd say getting started and taking action was the hardest part.

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  • Stephen Brown
    Real Estate Broker · Huntsville, AL · Member since 2019 · 1k+ posts · 872 votes
    5y

    Andre, if you're interested in invested in the midwest feel free to message me. I'm in the market of Toledo, Ohio. With 25k you can get started now.

    1Reply
  • Steve Morris
    Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    5y

    Well, sounds like Biden is going to gift you $10K toward student debt.  What's your situation with student loans otherwise?  It'll affect your ability to finance an acquisition.

    1Reply
  • Dan Maciejewski
    Realtor · PInellas County Largo, FL · Member since 2016 · 902 posts · 810 votes
    5y

    My advice to young people starting out is to look into an investment first.  Think about a small multi-family that you can live in.  It doesn't necessarily have to cash flow while you're there (that would be a bonus!), but make sure it's a solid investment for when you leave it or flip it into something bigger.

    Getting your housing spend down lets you save that much faster for your next purchase.  Owning a small investment isn't sexy like flipping, but you don't have as much risk, either.  

    Even a single-family with roommates is good, but I really like multi-family!  Look at Arnold Schwarzenegger and how he started in Real Estate.  That should be everyone's goal starting out, I think!

    2Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    5y
    Originally posted by @Andre Sanchez:

    I have been saving for 2.5 years now  working two jobs while attending undergrad. I graduate this May with a job lined up at a Big 4, 25k saved and 3 years of building credit(760). I will be in Los Angeles so a tough/impossible market (I think). I want to start my journey in real estate investing to build wealth and generate cash flow. I’m interested in flipping, house hacking, and rentals. What would you do in my shoes?

     Move to Columbus OH its cooler than LA with cheaper housing

    3Reply
  • Amos Mainville
    Specialist · Elmira, NY · Member since 2019 · 33 posts · 38 votes
    5y

    Having friends and family in LA... that nest egg isnt likely to touch much. You are going to be likely looking at long distance options.

    Last year i bought 3 duplexes that averaged about 18k each down payment in Elmira NY. Each will return 6-800 a month net. Its a great market but I have seen many distance investors burned here as well. As a licensed home inspector I evaluated 35 properties to buy those 3. I had strict criteria for properties that were close to turn key from a mechanical/structural perspective. Paint and general updating was acceptable.

    Don't get discouraged. There are some great markets you can work in but it will be at a distance. 

    1Reply
  • Andre Sanchez
    OP
    Accountant · Los Angeles, CA · Member since 2018 · 7 posts · 14 votes
    5y

    Hi @Steve Morris,

    I will be coming out of college debt-free. I am very fortunate to be in that situation. I’m happy I went to a state school in a booming area, it really helped a lot with that.

    0Reply
  • Andre Sanchez
    OP
    Accountant · Los Angeles, CA · Member since 2018 · 7 posts · 14 votes
    5y

    Hey @Stephen Brown, I sent you a private message!

    0Reply
  • Andre Sanchez
    OP
    Accountant · Los Angeles, CA · Member since 2018 · 7 posts · 14 votes
    5y

    Hello @Amos Mainville,

    I realize I’m a young investor and there will be a lot to learn and plenty of potential to get burned. I’m doing all I can now to decrease the likelihood of that happening. Investing out of state but it is definitely something I’ve been strongly considering due to the reasons you stated. It is just difficult to start out since I have no experience other than what I’ve learned from the hours of videos I’ve watched. Do you have an resources that could really help me get started? Thank you for taking your time to respond!

    0Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    5y

    If it was me I'd house hack but I do live in the Midwest(KC) so different market. Are you able to put 3/3.5% down and buy a home or multi? Rent out room by room. I am 21 with 50K saved and plan to house hack to learn then scale up. 

    2Reply
  • Andre Sanchez
    OP
    Accountant · Los Angeles, CA · Member since 2018 · 7 posts · 14 votes
    5y

    Hi @Dan Maciejewski, I appreciate the response! Do you think this is something that is possible the do in LA? Unfortunately, I can’t count on being remote once the pandemic is over so to house hack in a multi-family I would need to purchase in LA. I do not meet the income requirements alone for that and it sounds like it would be a scary situation to be in if I got a co-signer but the property went vacant for a bit. Do you have any advice on that?

    1Reply
  • Miguel Cabrera
    Flipper/Rehabber · Tampa, FL · Member since 2020 · 4 posts · 1 vote
    5y

    @Andre Sanchez make sure you have all the contracts you need, build a solid buyers list so when you meet a potential seller it’s a smooth and easy transaction. Make sure your marketing in the right demographic.

    1Reply
  • Andre Sanchez
    OP
    Accountant · Los Angeles, CA · Member since 2018 · 7 posts · 14 votes
    5y

    Hi @Caleb Brown,

    This is another option I’ve been exploring but in LA I would not meet the income requirements alone. I could get a co-signer and put 3.5 down on an $800,000 duplex. Do you think Zillow would be a good place to look and do you know any resources on what to say when I do find a property I’m interested in?

    2Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    5y

    You could connect with a local agent and go from there. Or invest OOS into something. Midwest has been a strong market overall

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Account Closed:
    Originally posted by @Andre Sanchez:

    I have been saving for 2.5 years now  working two jobs while attending undergrad. I graduate this May with a job lined up at a Big 4, 25k saved and 3 years of building credit(760). I will be in Los Angeles so a tough/impossible market (I think). I want to start my journey in real estate investing to build wealth and generate cash flow. I’m interested in flipping, house hacking, and rentals. What would you do in my shoes?

     Move to Columbus OH its cooler than LA with cheaper housing

     This is a great idea! That is what I did 3 years ago in Columbus, Ohio

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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    2Reply
  • Brian G.
    Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
    5y

    @Andre Sanchez dude you’re a total stud! I highly recommend you research and continue to save, then house hack. Absolutely the best way to begin and perfect in this stage of life.

    1Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    @Andre Sanchez

    I’d recommend finding an investor friendly agent on BiggerPockets if you can

    [email protected]614-363-2787
    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
    WebsiteView Page
    2Reply
  • Account Closed
    Investor · Pittsburg, CA · Member since 2018 · 11 posts · 23 votes
    5y

    I live in CA and I was also deciding whether to invest locally or OOS a few months back. I ended up deciding to invest OOS in Columbus, OH since the numbers just didn't make sense locally. I've been working with @Remington Lyman's team and have had positives experiences so far.

    Feel free to reach out if you want to connect. Looking back, I'd say getting started and taking action was the hardest part.

    3Reply
  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    5y

    @Andre Sanchez you have a good start, but $25k isn't really enough to make any headway....double it and do some research in the meantime. You have obviously demonstrated you can save money. A 760 credit score on Experian is not a 760 credit score when your lender pulls credit. Learn about doing a live-in renovation, a house hack, and investing out-of-state. Don't jump the gun...most of us have the "ready, fire, aim" mentality...we are opportunistic creatures. Work on a long-term solution...your first step toward a defined long-term goal is very important.

    And best of luck.

    937-979-7000
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  • Noah Chappell
    Investor · Minneapolis, MN · Member since 2016 · 254 posts · 228 votes
    5y

    @Andre Sanchez are you able to save up 75k in a year or 2? If you do you might be able to go the David Greene way and buy a single fam with multiple rooms, rent them out, and house hack. Young cat like yourself wouldn't mind living with others. In doing so you'd own for the price of paying rent, and have exposure to LA appreciation. 

    1Reply
  • Dan Maciejewski
    Realtor · PInellas County Largo, FL · Member since 2016 · 902 posts · 810 votes
    5y
    Originally posted by @Andre Sanchez:

    Hi @Dan Maciejewski, I appreciate the response! Do you think this is something that is possible the do in LA? Unfortunately, I can’t count on being remote once the pandemic is over so to house hack in a multi-family I would need to purchase in LA. I do not meet the income requirements alone for that and it sounds like it would be a scary situation to be in if I got a co-signer but the property went vacant for a bit. Do you have any advice on that?

    I don't know your market and what's feasible as far as ROI, or your budget. Sometimes you have to save a bit -- the 1st purchase is the hardest!

    You can always flip or rehab for cash, but that usually requires market knowledge and a good amount of cash, so it's not really a beginner's strategy.  The best strategy is usually to focus on your career and becoming a high earner and then putting that money into investments.

    0Reply
  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    House hacking would be the ideal goal in your situation. If your market is too overpriced at the moment then looking at investing out of state could be a great option with the right team in place. @Andre Sanchez

    [email protected]614-963-3340
    1Reply
  • Steve Morris
    Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    5y

    On the student debt, congrats.  I know a couple of liberal arts grads with $200K debt each and that is sheer foolishness (I really think colleges should have to account for some of the stuff they get kids into).

    I'd say the first thing is to get together your funds and then call a mortgage broker and explain what you want to do.  Meanwhile, learn what type of properties you want and what qualifies for a good deal.

    1Reply
  • Pravit Jarriyapurttipong
    Member since 2022 · 7 posts · 0 votes
    4y
    Quote from @Amos Mainville:

    Having friends and family in LA... that nest egg isnt likely to touch much. You are going to be likely looking at long distance options.

    Last year i bought 3 duplexes that averaged about 18k each down payment in Elmira NY. Each will return 6-800 a month net. Its a great market but I have seen many distance investors burned here as well. As a licensed home inspector I evaluated 35 properties to buy those 3. I had strict criteria for properties that were close to turn key from a mechanical/structural perspective. Paint and general updating was acceptable.

    Don't get discouraged. There are some great markets you can work in but it will be at a distance. 

    Hi Amos,

    May I ask why many long distance investors got burned in Elmira? 
    I'm from Queens, New York. Thinking about buying a rental property that already have tenant. 

    Would the property below is a good fit what can go wrong? I might have you inspect this house if I decide to buy it.

    https://www.zillow.com/homedet...

    0Reply
  • Justin WindhamPro Member
    Banker · Nationwide · Member since 2015 · 4k+ posts · 1k+ votes
    4y

    @Andre Sanchez

    It’s nice to have you here!

    This is a great forum with very knowledgeable members that will help to guide you in the right direction.

    If you are looking to connect with other members near you, or want to learn from people in a specific area you’d like to invest in, or have a desire to find people interested in certain topics, you could use the search feature here: https://www.biggerpockets.com/search/users


    I really like the alerts feature that can quickly guide you to current topics that might interest you: http://www.biggerpockets.com/alerts

    0Reply
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