17 year old planning to invest!

[Kenny Banuelos]

I have been saving since I was 14 years old, and I am on Track to buy my first Duplex (house hack) while still being a senior in high school with my Parents cosign, I turn 18 In a few months. Since this has been a goal of mine for years, I am really eager to move in and start my real estate journey. I really want to jump into it as soon as possible but I know an emotional purchase is not smart.

I would love some advice of what you would do in my shoes BP FAM!

[Randall Alan]

Quote from @Kenny Banuelos:

I have been saving since I was 14 years old, and I am on Track to buy my first Duplex (house hack) while still being a senior in high school with my Parents cosign, I turn 18 In a few months. Since this has been a goal of mine for years, I am really eager to move in and start my real estate journey. I really want to jump into it as soon as possible but I know an emotional purchase is not smart.

I would love some advice of what you would do in my shoes BP FAM!

@Kenny Banuelos

This may sound counter-intuitive…. But I would say “Consider your timing.”

Real estate is expensive right now, and money is expensive right now (APR wise).

The fed is expected to start cutting rates later this year.  Waiting a year might not be a bad idea versus pulling the trigger sooner and having to pay to refinance later.

Also realize it may be tough starting off as a 17 year old.  Could be somewhat hard to command respect from someone much older when you are much younger.  So that may be a challenge… but not one that can’t be overcome.  

The house hack approach makes sense otherwise.

Think about cash reserves.  if the renter’s AC croaks, do you have the $5,000 it will take to replace it?  So it is beyond just getting the house, it is having the resources it takes to be a landlord as well,  I have 37 units.  I LITERALlY replaced 5 AC units in the past 30 days  ($25,000 in capital expenses!)  Random stuff like that can happen.  Be sure you are prepared for it by having adequate reserves.

Part of me says that house-hacking when you don’t need to (because you could live with your parents longer)  seems a little weird… but if you are doing that to get the 3.5% down I guess I get it.  But in a year you could move back in with your parents and rent out both sides of the duplex… just a thought for you.  

Hope some of it helps!

Randy