No debt, $35k in savings, 22 y/o, Trying to Get Started

No debt, $35k in savings, 22 y/o, Trying to Get Started

Member since 2022 · 1 post · 0 votes

Good evening, 

Hypothetically speaking, If there was a college student (Mechanical Engineering Major) who had about $35k in his savings, no debt, one semester of school left, and was looking to invest in something beyond the typical stocks portfolio, and retirement accounts (401k, roth ira)... What would you suggest?

This hypothetical student is aware of storage units, and house hacking as some pretty viable options, but isnt sure what else there might be out there. Based on this hypothetical students research, they have narrowed their ventures down to those two options but feels like there is a chance that they may have overlooked better options. 

This hypothetical student is considering finding a mentor for the storage unit/rental property ventures but isnt sure what they would be able to offer in exchange to the "mentor".

Any advice or just general thoughts for this hypothetical student would be greatly appreciated. 

Thanks. (hypothetically of course)

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  • Real Estate Agent · Miramar Beach, FL · Member since 2016 · 285 posts · 245 votes
    3y

    @Evan Rank Wait until you graduate and get a good W2 job. Once you're there, find a good lender and get a pre-approval. Do some research on small multifamily homes or homes with ADUs and plan to house hack. Find a property that suits your needs and start making offers. Once you hopefully have closed on a property, treat it like a business and establish the systems that are needed to scale. Have your tenants/roommates sign leases, collect security deposits, find a good handyman/contractor, etc.

    Having no debt out of college puts you ahead of many of your peers, so use that to your advantage. You could probably use this strategy several times over the course of 3-5 years without too much difficulty. Once you get experience managing several properties, you'll learn of other opportunities to grow your real estate holdings and scale your business.

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Evan Rank:

    I would suggest he graduate, get a job, and stabilize his life before thinking of investing. Too many new things at once can easily derail one of his plans, maybe all of them. 

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