My name is Jacob McMahon, I am 21 years old currently saving for a down payment on my first BRRRR property (probably a JV). My goal is to save 60k for a down payment, but I am having trouble deciding the most efficient ways to save it. I currently save roughly 50% of my income to a vanguard index fund (VTSAX), and my emergency fund is fully funded. I should be able to reach a portfolio value of 60k in my index fund within 4 years, but it's a very large opportunity cost to fund a down payment with my stock portfolio. It seems that the safest way to save for a down payment is in a low interest bank savings account, but that would take much longer. Would it be beneficial to switch my saving strategy over time? i.e. Save 50% of my income in my bank savings until it reaches 10% of the down payment, then fund the rest with my index fund. Does anyone have advice for savings strategies for my first down payment?
I would say to either start out with house hacking or looking at getting a capital partner. I think it's great that you are planning and saving but I think that a 4 year time frame is a long time to save to then start investing. House hacking would be a quick way to start with limited capital needed upfront. Bringing on a capital partner would be another way to get started without having to put up a lot of money. Yes of course you will have to pay for the use of capital or split the profits but I think that it would help get you to where you want to be quicker.
I hope this helps.