I'm 18 and have 12K saved what should I do?

Question

I am wanting to get into relstate and start building wealth very early on. I already have about 12K saved. House hacking definetly seems like the right way to go but I curently live with my parents and have very low monthly expesnses. I am a little scared becasue House hacking would make my monthly expenses where most people are already use to paying a morgate. I get the idea is for the renter to take care of most of the morgate but if take awhile to find my first renter... sounds tight. I have a low paying job($40,000 anually). I am just looking for any advice for my curent situation.

I have another question for a FHA loan is it correct that you need 2 years of consistent income history?

Again any advice I gratelly apricate!

I have another question for a FHA loan is it correct that you need 2 years of consistent income history?

Again any advice I gratelly apricate!

Andreas W. · Answer

@Jaben Jennings

If I were you I would stay put and enroll in a community College to get a business degree. Work for a builder or realtor on the side to gain experience. Once you have your Associate degree, you can transfer to an online 4 year institution or dive into re full force.

Carlos Valencia · Answer

Hello Jaben,

I would suggest to continue saving and continue to increase your income so you can reach your goal much faster. No need to rush your still young. Continue learning and if possible try to find a mentor and offer them your time so you can learn while you help them. Also explore all options of real estate investing and make sure you find the one path that meets your personality. Who knows you might not like to manage tenants. Hope this helps.

@Albert Bui @Matthew Kwan

Ian Walsh · Answer

Your most valuable asset is your age.  You have a lot of time.  Focus on learning your market and learning to market.  Keep the 12k. You won't need it to make it.

Ran Iarovich · Answer

Hi Jaben,

First, I just want to point out that having this mindset at 18 is incredible. You are already thinking of how you can leverage your wealth to create generational experiences and opportunities for yourself and your family. I find that very honorable. Your parents must be very proud. With that being said, most people in this forum are right. Find yourself a "Dream Team" that you can use as a Bat signal whenever you encounter huge roadblocks of fear and inexperience. You should never be ashamed to ask for help and sponge in the information that someone has to give you. Mentors, realtors, vendors, lenders, etc etc. will all help you illuminate the path to get you toward your goal. And hey, you may not be able to do a house hack this year. Big deal! You can always plan out more and put yourself in a better situation when the economy gets better and you feel more ready. This is a long term game, don't try to make a decision now if you haven't seen the light at the tunnel yet.

Yiwei Cheng · Answer

That's amazing that you are getting started at 18!  I would ask what are you interested in?  If you don't know, then experiment.  Start small but try different things!  Try wholesaling or partnering in a rehab by lending your money.  You have a lot of time to learn and experiment.  Don't worry about making mistakes and making the best investment of the 18k.  You will make more money the more skills and experience you accumulate.

JooYung Choi · Answer

House Hacking is a great way to get started in real estate. Although, given your income / work history, obtaining a loan right now will be difficult. My recommendation would be to continue saving money, try to increase your annual income and devouring all the educational content out there. For your first home purchase, I would definitely lean towards the FHA multifamily route.

Bruce Woodruff · Answer

This^^^ Investors always neglect to gather that construction experience and that is what can really set you apart.

You are only 18 and you sound in a bit of a rush....relax and slow down. Stay at home, learn more, save more and make those all important connections. Then in a couple years you can hit the ground running. Starting too soon could lead to disaster as you have zero knowledge of the game you are wanting to enter.....your $12k (although a nice sum to have saved at your young age!) is really a small amount and can vanish in a second with a bad decision or a fickle market.....

So wait, learn and save!

Erik Anderson · Answer

Live at home for very cheaply for a couple more years. Even on 40,000 income, if your expenses are low you could probably save half that or more per year. Two years of saving $20,000 and you'll have $50,000 when combined with what you already have saved.

Jacob LeBar · Answer

Hey @Jaben Jennings, you should continue to save up. When you first start you will make mistakes so you need to be prepared for those unforeseen circumstances. Househacking is a great way to start, but try going to meetups (make sure they're in person) and learn from people who have experience. Read books and listen to podcasts and try to immerse yourself as much as possible. You're 18 you should be focused on learning as much as possible and you'll be set for a long time if you start a few years from now.

Nathan Harden · Answer

So many of us on here wish that we had your mindset at your age!

You are in a very cheap market to get into, I see a lot of suggestions about house hacking, I think that is a great step.

As far as FHA goes, you may have a difficult time getting a loan just solely based on minimal job history/credit.

I'm 18 and have 12K saved what should I do?

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