Can house hacking work for a 18-19 year old fresh out of high school

Question

Hi, I'm 18 years old and a senior in high school. I'm new to the BiggerPockets website and forum. I'm choosing to not go to college next year because I don't believe it takes a degree to become financially independent with real estate. I want to gain experience and get involved with real estate. I eventually want to use other real estate strategies, but for now as an 18 year old beginner I think house hacking would be the place to start with 0 experience. Is this realistic for an 18/19 year old?

I would love some feedback and to hear back from you if you see this, thank you!

Rick Albert · Answer

As long as you have the income, credit, and down payment, then you qualify. Age doesn't matter.

I wouldn't disregard college. I know it can be expensive and no, there isn't a guarantee of success because of it. But don't underestimate the power of networking. One of my business partners where we own two properties together is someone I met in college. I joined a nationwide fraternity in college and  I have clients that I have met over the years because of it. The challenge with college is people don't maximize the experience that goes along with it and don't run the numbers of the cost of tuition versus what's out there. Also keep in mind there are high paying jobs in real estate that W2 (asset managers make six figures).

Dave Meyer · Answer

To be a successful investor you need both active and passive income. House hacking is a great way to generate the passive part, and getting start young is amazing. Just make sure you have the systems in place to manage the property well. But at your age, I would think long and hard about how you're going to earn an active income so you can continue to invest in passive investments. It could be in real estate -- as an agent, a loan officer, a wholesaler, or even a flipper (I'd recommend that only once you get a little more experience as its risky), or something completely outside RE. College can be good for increasing your earning potential, but so can trade school, or some other type of education. You need to get good at something, ideally very good at something, that you get paid for today. You use that money to live, ideally save as much as possible, and use the savings to invest in passive RE. Don't just skip to the passive part without a strong plan for making money. I know that doesn't get you retired anytime soon, but that's reality! If you can do this for 10-15 years you'll be set for life, and that beats a 45 year career any day.

Brian Asaro · Answer

Yes! The earlier you get started, the better. I wish my family members would have your mindset. Real estate is a long game

Ryan Spath · Answer

Hi Tony, I totally agree with you on this. I did however go to college, but I do not think you need to go in this age. Looking at your market Spokane Valley, I found a duplex 16108 E Braodway, its listed at 400k, if you were able to use an FHA loan your payment would be ~3,100. 6.75% rate, 3.5% down, $3810 in taxes and $1500 insurance. Using rentometer  this sized unit rents for ~$1550. The question becomes, can you live in one side improve it and increase rents to $1700, do this on both sides, now you are making a few bucks to help cover repairs and vacancy. Househacking isn’t hard, just have systems in place and do not bend from your leases. The biggest thing I will say is that real estate is capital intensive, meaning if you only have 5k in saving and an ac goes out the same time the water heater breaks you may find yourself in trouble. Ultimately you need housing, so this is an amazing idea. Focus on building your skills and becoming more valuable in the workplace. If you are interested in RE, consider getting your license. This will give you insight into the space, and you will have better tax benefits. Best of luck what ever you decide, send me a dm if I can help.

Steve K. · Answer

Attending college and house-hacking your way into a real estate portfolio don’t necessarily have to be mutually exclusive. Would it be possible to house-hack while going to school? The purpose of going to college is not just about the subject matter or getting a degree, it’s about the connections you make that will pay dividends for the rest of your life. It’s also about having fun while you’re young!

Gavin Pehl · Answer

Tony,  all of these comments are gold. I built my first house by the time I was 21 after buying my first vacant lot at 19. You need to know that I was not qualified to build a home at that age but I did it anyway. I successfully built a 1400sf 3bed 2 bath single family home. I then rented the 2 other bedrooms to my brothers. I gave them a great deal on rent and I lived in the house for free. I didn't know I was house hacking at the time. Now I look back and laugh at what i did without knowing how great it was

I hade a good community of people who knew how to build a house around me that I could call on when I got stuck.

I share my story only to encourage you to be bold. The information is out there. This forum is a great resource. One member even sent you a deal with some tough number. That was pretty cool. You sound like a hard worker with a hungry mind. I applaud you for even considering the house hack option at your age. I can tell you are a smart young man. Learn how to underwrite and go get yourself a home you can charge others to live in with you. Don't let the haters change your mind. You can do this and you should do this. Find the right property and don't look back

Aaron Zimmerman · Answer

What capital do you have? I'd consider getting into real estate on the brokerage or property management side to learn the business and build up capital

Noah Corwick · Answer

No problem! With 2 years of W2 you can definitely use this with banks/lenders. At that stage, it just becomes a question of how much you qualify for and if house prices support it.

Om Kalra · Answer

Yea I think this would be a great strategy this way the cost for you to live in your home is either much cheaper or in some cases you can get paid to live in your own home. It is realistic but depends on how u go about it

Tony Rodriguez · Answer

I absolutely agree with you. I appreciate your input, thank you for your feedback Dave!

Can house hacking work for a 18-19 year old fresh out of high school

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