Starting Out (House Hacking, Raising Money)

Los Angeles County, California
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Starting Out (House Hacking, Raising Money)

Cole McMahon
Member since 2025 · 2 posts · 6 votes

Hello Everyone,

I am currently 24 years old and about 8 months into my first corporate job working as an analyst for a multifamily lending firm in LA. I am a very frugal person and have been dumping what I have left over into my roth ira but want to start saving for my first real estate investment. My goal has always been to own real estate and am fascinated by the idea of house hacking.

What little steps would you guys recommend I do to start making this a reality. I know that this is a process and I am prepared to take the slow and safe route. but have many doubts/questions racking my brain in this early stage. My job takes up a lot of my time (50-70hr weeks) and I don't have the capital to fund deals passively so I'm looking for inspiration as to how I can bring other things tot the table (I've heard you either need time or money). I also find it quite daunting and to invest in such an expensive market like Los Angeles. Is it possible to invest in more affordable markets if I don't live in the area? Any recommendations on how to find mentors, meetups, and begin networking in general would also be much appreciated.

I know I can do this and am very excited to join this forum. Thank you!

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Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
1y

@Cole McMahon

It’s great that you’re planning strategically while balancing a demanding job. Focus on saving aggressively, improving your credit score, and exploring down payment assistance programs to build a solid financial foundation. Educate yourself through books, podcasts, and meetups, and consider house hacking in LA or investing out of state for cash flow. Use your expertise in multifamily lending to analyze deals and start small with a manageable first property. Take consistent steps, like attending meetups, analyzing properties, and reaching out to mentors, to build momentum toward your goals.

Good luck!

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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    1y

    @Cole McMahon

    It’s great that you’re planning strategically while balancing a demanding job. Focus on saving aggressively, improving your credit score, and exploring down payment assistance programs to build a solid financial foundation. Educate yourself through books, podcasts, and meetups, and consider house hacking in LA or investing out of state for cash flow. Use your expertise in multifamily lending to analyze deals and start small with a manageable first property. Take consistent steps, like attending meetups, analyzing properties, and reaching out to mentors, to build momentum toward your goals.

    Good luck!

    [email protected]832-776-9582Podcast Guest on Show #469
    NETWORTH BUILDERS5236 Reviews
    WebsiteView Page
    1Reply
  • Austin McClainBusiness Member
    Real Estate Agent · OH · Member since 2021 · 348 posts · 602 votes
    1y

    House hacking is good because you can get a low down payment mortgage (around 3-5%). If you go out of state, the prices will be lower, but the down payments go up to 20-25% 

    I personally started house hacking. It's a good way to get started with less money down to hold an asset 

    [email protected]614-710-4827
    1Reply
  • Alan F.
    Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
    1y
    Quote from @Cole McMahon:

    Hello Everyone,

    I am currently 24 years old and about 8 months into my first corporate job working as an analyst for a multifamily lending firm in LA. I am a very frugal person and have been dumping what I have left over into my roth ira but want to start saving for my first real estate investment. My goal has always been to own real estate and am fascinated by the idea of house hacking.

    What little steps would you guys recommend I do to start making this a reality. I know that this is a process and I am prepared to take the slow and safe route. but have many doubts/questions racking my brain in this early stage. My job takes up a lot of my time (50-70hr weeks) and I don't have the capital to fund deals passively so I'm looking for inspiration as to how I can bring other things tot the table (I've heard you either need time or money). I also find it quite daunting and to invest in such an expensive market like Los Angeles. Is it possible to invest in more affordable markets if I don't live in the area? Any recommendations on how to find mentors, meetups, and begin networking in general would also be much appreciated.

    I know I can do this and am very excited to join this forum. Thank you!


     Save lots of $, learn all of the basics of investing, live well below your means and don't look for the easy way. Hard work and humble actions have the highest probability for success.

    0Reply
  • Tim Ryan
    Investor / Mentor / Contractor · Arcadia, CA Buying Out of State · Member since 2015 · 655 posts · 622 votes
    1y

    Find a mentor. You can learn and learn, but still not do anything. Or worse, do something wrong.  I've had several mentors. Without them I would not be where I am today in real estate investing.

    On the other hand, I never really took on a contracting mentor and it took 20 years to fugure out that business. In retrospect I wish I had found a mentor, regardless of cost, and I could hav been where I am today, a decade earlier.

    0Reply
  • Scott Pavich
    Property Manager · Oviedo, FL · Member since 2013 · 18 posts · 8 votes
    1y

    @Cole McMahon

    House hacking is by far the easiest way to save money for investing. And doing it right out of college is the best time since you’re likely used to roommates anyway. I did it for five years right out of college and saved almost $50K. Yes it’s awkward at first but you quickly adjust to it and the time flies by.

    0Reply
  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    1y

    @Cole McMahon Have you considered an FHA loan? It is a great tool for buyers with limited resources who are just getting started. My recommendation is to buy in a location where you are expecting significant appreciation over the next few years (even better if you can force some appreciation with improvements). Buying right + FHA financing can really kick start your real estate investing because the equity that can be generated is far more meaningful than any cash flow you may generate early in your real estate investing career. In the meantime you are getting paid to learn how underwrite your real estate which is great. I would add its helpful to attend networking events and make industry connections. Perhaps it opens other employment opportunities but these will also be helpful industry relationships when you are able to purchase more real estate.

    [email protected]
    0Reply
  • Aaron Lawrence
    Real Estate Agent · Los Angeles · Member since 2024 · 17 posts · 5 votes
    1y

    House Hacking makes a lot of sense, especially in LA (I'm an LA native and now in residential sales) 

    All the above advice is very sound but don't forget you'll be a landlord! 

    Bone up on property management best practices. Make sure you've got a handle on RSO or whatever the prevailing rent control is in the area you want to live, how to budget properly for your income producing unit(s), speak with your CPA about the implications of having a primary residence & rental property, and plan for the worst case scenario and get familiar with the eviction process (hopefully you do a good job screening your tenant(s) and never have to worry about that). I could go on.

    If you want to chat more about your situation specifically, I'd be happy to do an obligation-free consultation. Just shoot me an email or a text.

    [email protected] // (310) 779 8379

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    @Cole McMahon as others have mentioned, explore getting pre-approved for an FHA loan for the low 3% investment required.

    Save and beg relatives for gifts to get the 3% down!

    To cover closing costs, prepaids and seller prorations you can negotiate up to a 6% seller contribution to cover those via inflating the purchase price - but, the property will still need to appraise for that amount.

    You can also check out an FHA 203(k) which allows you to finance repairs into the purchase loan! This would be required if you bought a fixer-upper that needs work to pass a purchase appraisal inspection.

    What you'll then want to do is rent out all your other bedrooms to help cover your mortgage payment. Live in the basement if necessary to rent out ALL the bedrooms!

    You could even experiment with listing a furnished bedroom on Airbnb for more rent than you could get with a LTR (long-term rental). If it works, do the same on the other bedrooms.

    Your goal isn't to live comfortably in this first property, it's to maximize cashflow and learn how to be a landlord.

    If you like the experience you repeat in 1-2 years.

    If you don't like being a landlord, then you'll know you should pursue other strategies.

    [email protected]248-209-6824
    Logical Property Management4.9460 Reviews
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  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    1y

    You're already thinking like an investor. Since you're interested in house hacking, start learning about FHA or low-down conventional loans and how you can use them to buy a duplex or rent out rooms. If LA feels too expensive, out-of-state investing is totally possible with the right team in place just treat it like a business and vet your people carefully. Your job in multifamily lending gives you a huge edge use those skills to underwrite deals, analyze markets, or help other investors in exchange for mentorship or partnership. Time is tight, but you can still network by joining local meetups, real estate Facebook groups, and connecting with people on BiggerPockets.

    [email protected]614-490-1163
    Kerlous Tadres | Reafco Real Estate541 Reviews
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    0Reply
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