22 years old interested in investing in rental property

[Melissa Dobson]

Hello All. I am wondering how to become a successful landlord.  However, no one explains how they get the first money to buy land/ home to get that property at a young age. I am not asking for a mentor but for advice. 

[Franky Maslim]

snowballing = compounding. Re-investing your profit from your very first rental property into the next deal.

So the idea is that you have a stable income. Living frugally on that income, you use your saving to buy the first rental property. Then you re-invest the profit, including your day-job income, into the property, and repeat the process. Before you know it, you could be a millionaire real estate investor, assuming things are going right.

When we're starting out, the most important thing is education. Getting educated on real estate investing. Getting educated on whatever your day job is, so that you can maximize your income in order to be able to invest in real estate. Without it, you wouldn't be able to invest in anything, if at all, which then makes everything else impossible.

Say you make $100K. Take home pay is then $70K. Say your living expenses (including rent/mortage, bills, etc.) are $40K. So you have $30K/year left to say. Using that money, saving for 2 years, you can buy your first property. Assuming you go the rental route (this is my preferred way of building wealth):

Year 1: Income -> Property 1

Year 2: Income + Profit 1 -> Property 2

Year 3: Income + Profit 1 + Profit 2 -> Property 3

Year 4: Income + Profit 1 + Profit 2 + Profit 3 -> Property 4 (possibly even Property 5)

Year N: and so on, and so forth.

The snowballing/compounding effect can make any serious investor really wealthy.

Now, if you spend the profit on consumption (a.k.a. buying a new house, a new car, clothes, jewelry, etc.), it'll just slow down your wealth building strategy. So it's up to you