Saved $80K by 21 – Seeking Advice on What’s Next

[Solomon Nguyen]

Hello Everyone!

I hope you’re all doing well. First and foremost, I’d like to express my gratitude in advance for any advice the BP community can offer. I’m also excited to connect with more of you!

The Situation

I’m 21 years old and have been working as a real estate agent and property manager in Rhode Island for the past four years. While I’ve built a strong network, I’m currently facing a dilemma. My goal has always been to invest in local properties, but the high prices in Rhode Island have made that difficult. Based on my income, I’m unable to afford a multifamily property, and the deals I’ve come across haven’t been particularly attractive.

My brother, who earns $90K a year, is willing to co-sign with me, but his $100K in student loans doesn’t really improve our pre-approval prospects. On my end, I’ve managed to save about $80K and still owe $17K in student loans, but since I’m in the grace period after graduating in May, I’ve held off on paying them to keep my savings in a high-yield account for now.

I’ve been exploring Midwest markets where property prices are more affordable, and I feel like this might be the right place for me to start my real estate investing journey.

In the meantime, I’m also working with my parents to convert their single-family home into a three-family unit. Once the project is complete, their monthly payments would drop from $1,000 to just $60 with the rental revenue coming in. I have the option to invest $40K of my savings into the project and potentially see a modest return (few hundred dollars a month), but I’m unsure if it’s the best use of my funds. While I believe I’d be able to recoup my investment, I wouldn’t technically “own” the property until it’s passed down to my sibling and me in the future. The project is being funded by refinancing another family property.

Additionally, I’m planning to establish a property management company here in Rhode Island within the next year. Having worked in the industry for some time, I see the value in building relationships with local landlords, vendors, and the community, which could lead to future opportunities. I’m also pursuing my broker’s license, so I’d like to have some cash reserves when that time comes. This is what I could see that would keep me here in RI.

I should also mention that while I live in Rhode Island, I’m not necessarily tied to the state. I have a degree in Project Management and could potentially find a job in another market if it would better support my real estate investing goals.

Here are the questions on my mind

- Should I keep saving and wait to buy something locally in Rhode Island, Massachusetts, or Connecticut, where I could manage the property more easily?

- Should I consider purchasing in the Midwest, where I might find more affordable properties and either pay cash or make a substantial down payment to get started sooner?

- Should I invest $40K into converting my parents’ single-family home into a three-family, even though the immediate return might only be a few hundred dollars a month?

I would greatly appreciate any insights or experiences you all can share!

Thank you!

-Solomon Nguyen