Seeking advice as I’m getting closer and closer to my first rental investment!

Sioux Falls, South Dakota
Buying & Selling Real Estate
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Seeking advice as I’m getting closer and closer to my first rental investment!

Gavin Powell
Member since 2026 · 5 posts · 0 votes

I am currently 19 going on 20 years old at the end of 2026, going with that I'm sure you can understand the feeling of being nervous stepping into this new world! 

I am a unicorn who has the funds for this opportunity to get started early in my Real Estate portfolio. 

I've heard advice as far as going all in on my first single family property *nearly 30-40% down* . Ranging to playing it safe as in don't go for the home run, but go for singles to get on base. 


As I'm on my house hunt, I have found a triplex in my personal small but not big town community that I know very well, so I know it's a safe neighborhood, community, and best part is I have the connections and help in my corner! 

This triplex is essentially a turnkey LTR, it's had updates recently so there's no major expenses *granted money is not an issue I've got roughly 75k to play with*. But there is room for improvement for sure. I work general construction and know I can do a good chunk of upgrades, changes, or maintenance myself. 

This triplex is listed for 175k. I won't go too far into detail about the property but it has tenants currently in. I live at home so I am not apposed to house hacking if a tenant were to vacate. 

So on paper this seems like a great first starter for me to learn the ins and outs of being a landlord, manager, and communicator, while also not sticking my neck out too far and "risking it for a home run" with it being a LTR, apposed to a more expensive duplex that I could also house hack. 

So my question to anyone willing to take their time to help a young buck out, what's your input on what I've addressed? I'd love to hear all and any feedback, as I'm new and willing to learn from all perspectives, thank you!

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Vijay FriedmanBusiness Member
Miami, FL · Member since 2026 · 766 posts · 122 votes
2mo
Quote from @Gavin Powell:

I am currently 19 going on 20 years old at the end of 2026, going with that I'm sure you can understand the feeling of being nervous stepping into this new world! 

I am a unicorn who has the funds for this opportunity to get started early in my Real Estate portfolio. 

I've heard advice as far as going all in on my first single family property *nearly 30-40% down* . Ranging to playing it safe as in don't go for the home run, but go for singles to get on base. 


As I'm on my house hunt, I have found a triplex in my personal small but not big town community that I know very well, so I know it's a safe neighborhood, community, and best part is I have the connections and help in my corner! 

This triplex is essentially a turnkey LTR, it's had updates recently so there's no major expenses *granted money is not an issue I've got roughly 75k to play with*. But there is room for improvement for sure. I work general construction and know I can do a good chunk of upgrades, changes, or maintenance myself. 

This triplex is listed for 175k. I won't go too far into detail about the property but it has tenants currently in. I live at home so I am not apposed to house hacking if a tenant were to vacate. 

So on paper this seems like a great first starter for me to learn the ins and outs of being a landlord, manager, and communicator, while also not sticking my neck out too far and "risking it for a home run" with it being a LTR, apposed to a more expensive duplex that I could also house hack. 

So my question to anyone willing to take their time to help a young buck out, what's your input on what I've addressed? I'd love to hear all and any feedback, as I'm new and willing to learn from all perspectives, thank you!

@Gavin Powell
Sounds like you've put a lot more thought into this than most first-time investors. A stabilized triplex in a market you know well can be a great way to learn, especially if the numbers support your cash flow goals. I'd spend extra time reviewing the current leases, maintenance history, and expected operating expenses before making a decision. Best of luck—it sounds like you're off to a solid start.

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  • Gavin Powell
    OP
    Member since 2026 · 5 posts · 0 votes
    2mo
    To add when I say 30-40% down, I refer to roughly around 300k
    0Reply
  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 122 votes
    2mo
    Quote from @Gavin Powell:

    I am currently 19 going on 20 years old at the end of 2026, going with that I'm sure you can understand the feeling of being nervous stepping into this new world! 

    I am a unicorn who has the funds for this opportunity to get started early in my Real Estate portfolio. 

    I've heard advice as far as going all in on my first single family property *nearly 30-40% down* . Ranging to playing it safe as in don't go for the home run, but go for singles to get on base. 


    As I'm on my house hunt, I have found a triplex in my personal small but not big town community that I know very well, so I know it's a safe neighborhood, community, and best part is I have the connections and help in my corner! 

    This triplex is essentially a turnkey LTR, it's had updates recently so there's no major expenses *granted money is not an issue I've got roughly 75k to play with*. But there is room for improvement for sure. I work general construction and know I can do a good chunk of upgrades, changes, or maintenance myself. 

    This triplex is listed for 175k. I won't go too far into detail about the property but it has tenants currently in. I live at home so I am not apposed to house hacking if a tenant were to vacate. 

    So on paper this seems like a great first starter for me to learn the ins and outs of being a landlord, manager, and communicator, while also not sticking my neck out too far and "risking it for a home run" with it being a LTR, apposed to a more expensive duplex that I could also house hack. 

    So my question to anyone willing to take their time to help a young buck out, what's your input on what I've addressed? I'd love to hear all and any feedback, as I'm new and willing to learn from all perspectives, thank you!

    @Gavin Powell
    Sounds like you've put a lot more thought into this than most first-time investors. A stabilized triplex in a market you know well can be a great way to learn, especially if the numbers support your cash flow goals. I'd spend extra time reviewing the current leases, maintenance history, and expected operating expenses before making a decision. Best of luck—it sounds like you're off to a solid start.

    786-656-0387
    DreamPoint Capital
    WebsiteView Page
    2Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    2mo

    I would share the numbers of the property so we can all get a better feel of where the numbers shake out. On the surface it seems like a pretty good deal low purchase price and attractive area. I would call caution you on the word turnkey. nothing is ever turnkey

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  • Denise SuppleeBusiness Member
    Realtor · Willow Grove, PA · Member since 2017 · 982 posts · 643 votes
    2mo

    Congratulations! I like that you're looking at a property in an area you already know. From my experience, that's always been a big advantage. If the numbers work, a triplex can be a great way to learn about being a landlord. Wishing you much success!

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  • Caleb Fledderjohann
    Real Estate Agent · Minster, OH · Member since 2019 · 35 posts · 19 votes
    2mo

    @Gavin Powell I would second @Aaron Zimmerman about sharing the numbers.  It's listed for 175k as you said, how much are you estimating for upgrades (even if you do the work yourself)?  What does each unit currently rent for compared to what it could rent for...any upside on rent?  Have you researched and factored in property taxes and insurance into your budget?

    I'd be more than happy to discuss any future questions you may have on purchasing your first rental.  It was the most difficult one for me to purchase, but the only way to build real knowledge.

    1Reply
  • Gavin Powell
    OP
    Member since 2026 · 5 posts · 0 votes
    2mo
    Thank you all. I clearly need to do more research, but this was just a first look at the property it listed less than 24 hours ago, and with my job I haven’t had a chance to do my research quite yet. But thank you guys for the input that I need to know the ins and outs before even thinking about taking another step towards it. My main thing with this all is I’ve wanted to take it slow and under control so I don’t reach my neck out too far.
    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    2mo

    @Gavin Powell

    For your first investment, rather than concentrating on making the biggest down payment you can afford, try to invest in real estate that has sound fundamentals. Since your triplex has good tenants and generates decent cash flow, and since you have made your due diligence in regard to the numbers and its condition, it might just turn out to be a great way to learn while creating value. As a young investor, you will probably learn a lot from such a purchase.

    Good luck!

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  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    2mo
    Quote from @Gavin Powell:

    I am currently 19 going on 20 years old at the end of 2026, going with that I'm sure you can understand the feeling of being nervous stepping into this new world! 

    I am a unicorn who has the funds for this opportunity to get started early in my Real Estate portfolio. 

    I've heard advice as far as going all in on my first single family property *nearly 30-40% down* . Ranging to playing it safe as in don't go for the home run, but go for singles to get on base. 


    As I'm on my house hunt, I have found a triplex in my personal small but not big town community that I know very well, so I know it's a safe neighborhood, community, and best part is I have the connections and help in my corner! 

    This triplex is essentially a turnkey LTR, it's had updates recently so there's no major expenses *granted money is not an issue I've got roughly 75k to play with*. But there is room for improvement for sure. I work general construction and know I can do a good chunk of upgrades, changes, or maintenance myself. 

    This triplex is listed for 175k. I won't go too far into detail about the property but it has tenants currently in. I live at home so I am not apposed to house hacking if a tenant were to vacate. 

    So on paper this seems like a great first starter for me to learn the ins and outs of being a landlord, manager, and communicator, while also not sticking my neck out too far and "risking it for a home run" with it being a LTR, apposed to a more expensive duplex that I could also house hack. 

    So my question to anyone willing to take their time to help a young buck out, what's your input on what I've addressed? I'd love to hear all and any feedback, as I'm new and willing to learn from all perspectives, thank you!

    Somehow I missed what your goals are and what you are trying to accomplish. If you don't know where you are going, any road will take you there. But, where do you want to be in 10 years? Some people I've helped retire in 5 years. That was their goal. Others stay with their W2 because they like what they do at work. What's your goal?
    1Reply
    • Gavin Powell
      OP
      Member since 2026 · 5 posts · 0 votes
      2mo

      @Ken M. Hey Ken! My goal was not to get rich quick, granted that would be a perfect world to do so but I have planned on doing more long term such as 10 years from now to hopefully be financially independent. I would like to get my first investment and continue to learn and figure out what works from me and repeat the cycle. I did not think retiring in 5 years was feasible.

      0Reply
    • Ken M.
      Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
      2mo
      Quote from @Gavin Powell:

      @Ken M. Hey Ken! My goal was not to get rich quick, granted that would be a perfect world to do so but I have planned on doing more long term such as 10 years from now to hopefully be financially independent. I would like to get my first investment and continue to learn and figure out what works from me and repeat the cycle. I did not think retiring in 5 years was feasible.

      @Gavin Powell: Markets are not predicable. Black swan events happen. Tax laws change. 
      What I do is use my handy dandy spreadsheet and put those variables into  the mx and come up with what an acceptable purchase price is. I specialize in buying properties at about 80% of present value and selling on lease option where I get 10% down. Others use their own formulas depending on what their plans are. But assume that going forward, things are today what they are today and tomorrow is a different day. My spreadsheet is set up to handle those likely changes. 

      1Reply
  • Mohammed Rahman
    Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    2mo

    Hey Gavin,

    I agree with a lot of the comments here. There's a lot to like about your situation, but it's hard to give meaningful advice without seeing the numbers.

    For example, what's the current rental income? What are the operating expenses? Are the tenants on leases or month-to-month? What's the condition of the major systems like the roof, HVAC, and mechanicals? What would your monthly payment look like after taxes, insurance, and financing? Those details can completely change whether this is a great first deal or one you should pass on.

    That said, I do like your mindset. You're not chasing a flashy deal just because you have the capital. You're thinking about this as your first opportunity to learn how to be an investor, and I think that's the right approach.

    Good luck, and feel free to reach out if you have any more questions - my DMs are always open!

    1Reply
    • Gavin Powell
      OP
      Member since 2026 · 5 posts · 0 votes
      2mo

      @Mohammed Rahman Thank you for your input! I'm currently going to their open house today, and hoping to get these questions answered myself. I'd love to shoot you a message later in the week to pick your brain a bit more after I can answer more questions!

      0Reply
  • Patricio Brito
    Member since 2026 · 1 post · 1 vote
    2mo

    You've definitely put a lot of thought into it. One thing I would put some thought into is what is your investment strategy, are you focused on cash flow? or building equity over time? As Ken said, putting pen to paper is a great way to go about it to figure out if you'll be hitting your cash flow or irr goals here. I use myshortlists to do this at scale but this is only one property so a spreadsheet will work as well. 

    1Reply
  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    2mo

    At 19 with $75k and a construction background, this triplex is a strong tax setup regardless of whether you house hack or keep it a straight LTR. Since it's already a turnkey property with tenants in place, a cost segregation study is worth doing right after closing, on a $175k triplex with three units to allocate across, there's usually enough there to make it worthwhile even without a major renovation.

    On the improvements you're planning to do yourself, keep in mind you can't deduct the value of your own labor, only materials and any subcontracted work actually paid for, so track those costs separately and clearly by unit as you go, that documentation is what determines whether each item gets treated as a deductible repair or a capitalized improvement added to basis.

    If a tenant vacates and you move in, only the rented units continue getting depreciation and expense deductions once that switch happens, the unit you occupy comes off that treatment, so get a clean unit-based split documented at the point of conversion rather than trying to reconstruct it later. All-in and safe playing works in your favor here too since a full 30-40% down all-in-cash type play on your first deal usually just means giving up leverage, not saving on taxes either way, the tax benefit comes from the property and depreciation, not how much cash you put down.

    Happy to connect!

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  • Ismael El Hamdouchi
    Member since 2025 · 68 posts · 28 votes
    2mo

    Congratulations on getting to this stage. The fact that you’re asking questions before buying is already a good sign.One thing I’d recommend is focusing less on finding the “perfect” first property and more on making sure your numbers are conservative. Stress-test your deal by asking yourself what happens if rents come in lower than expected, repairs cost more, or the property sits vacant for a month or two. If the deal still works under those assumptions, you’ll probably sleep much better after closing.are you planning to self-manage your first rental or hire a property manager?

    0Reply
  • Jacob CamhiBusiness Member
    Hinton, WV · Member since 2026 · 132 posts · 40 votes
    1mo

    hey, it's really cool you're diving into real estate at such a young age, and with such a solid plan. a triplex in a town you know well, especially with your construction skills, sounds like a fantastic first step. house hacking by living in one unit and renting out the others is a super smart way to learn and keep costs low.

    before moving forward, i'd definitely verify what similar triplexes have actually sold for in your specific neighborhood over the last year. your local county assessor or recorder's website usually has these public sales records. also, cross-check the average rents for each unit size in that exact area. this will help you confirm you're getting a good deal on the purchase and that the rents are on par with the market, especially if you plan to update and increase them later.

    1Reply
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