22 with ~$50K saved up, is it too soon to start?

Question

Hello,

I'm 22 years old with roughly $50k saved up through part time jobs and internships. I am about to graduate college in May 2025, and will be making about $120k (pre tax) in my full time job postgrad (Washington DC area). I was interested in something like owning a rental property as a way to generate some additional income.

Is $50k enough to get started? Or should I wait it out a couple of years until I have a larger amount saved up. Any general advice is much appreciated.

Sofia Komrskova · Answer

If you need to stay in DC for employment than I would recommend house hacking something, although I'm not sure how far 50k will take you there. House hacking is the best way to get started in real estate IMO.

Kerlous Tadres · Answer

Nice job saving $50k by 22 that’s a strong position to be in, especially with a solid income lined up.

Yes, $50k is enough to get started. One of the best ways for someone in your shoes to begin is through house hacking buying a property with 3–5% down using an FHA or conventional loan, living in part of it, and renting out the rest. This lets you cover part (or all) of your housing costs while building equity and gaining landlord experience.

If you don’t want to house hack, you could look into investing in a more affordable market, but that comes with more complexity especially if you're managing it from afar.

Wale Lawal · Answer

@Pranav Patel

Starting your real estate journey with $50K saved and a strong income ahead is a fantastic position to be in. From my experience, you can use that savings to house hack with an FHA loan, invest in a turnkey property in a more affordable market, or even partner with others to expand your purchasing power. Starting sooner rather than later allows you to benefit from long-term appreciation, build equity, and gain hands-on experience, even with a smaller property. Focus on education, networking, and analyzing deals carefully to ensure your first investment sets a strong foundation for future growth.

Good luck!

Julia Lyrberg · Answer

Hi Pranav! First off, congrats on saving $50k and landing a great postgrad job—that’s an impressive start! With $50k, you likely have enough to get started, especially if you target lower-cost markets or use a strategy like house hacking. Consider looking into FHA or conventional loans with lower down payments to maximize your cash. However, if you’re not ready to jump in yet, you could spend the next couple of years building your savings and learning more about real estate to feel more confident when the time comes. Starting small and gaining experience is key!

Todd Anderson · Answer

@Pranav Patel, as others have said, the best time to plant a tree is yesterday. I would also encourage you to look into the house hack space. with 50k you can easily find a duplex that you could get into for 5% and start your journey.

Best of luck

Matthew Hull · Answer

Yes - jump in! How you do it is a big question, but whether or not to do it is not. Start now.

John Morgan · Answer

@Pranav Patel

Yes, 50k is plenty. I’d put 20% down on a SFR that will rent for around $1800-$2000/month.

Jeffrey Blackman · Answer

@Pranav Patel, I agree with @Sofia Komrskova. Consider house hacking where you buy a multi-unit property and rent out the others. The income from the rental units could help you buy a bigger property than you could on your own. If/when you do move, renting your vacated unit will provide even more cashflow.

22 with ~$50K saved up, is it too soon to start?

22 with ~$50K saved up, is it too soon to start?

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