Advice for a young investor

[Paige Rommel]

Okay, I need some advice from you veterans out there. Here's my lifestyle and financial breakdown: I'm 22 and have just survived my first year teaching high schoolers all about the Krebs Cycle and mitosis. Within the past 10 months, I've been able to accrue a little over $12,000 cash. This is all the money I have, so all you rich silverbacks out there can look at my bank statement and play the "I remember when I was that poor" game for a good laugh. I still owe some money for college (We Are Penn State!...and we are broke!), but I have no other debts. Credit score is as great as it can be for my age. I was saving up my money for a house, but have come to a fork in the road as to whether I should invest this money better.

Here are my questions: Do I have enough money to actually do something here, or should I keep saving? I'm still relatively young and poor, so I don't want to rush into anything too extreme for my first go around.

Should I buy and flip a house or buy a multifamily home and lease the other part? Perhaps something else?

What are going to be some pitfalls that I won't even think about when I get into residential real estate investments for the first time?

Thanks so much for any advice!

Paige

[Andy Bankston]

Hi, Paige! Welcome to BP.
It sounds like you are in an ideal situation to consider buying a multifamily building and renting out the other unit(s). You can purchase anything 4 units or less as an owner-occupant, the same as if you were buying a single family home for yourself.
If you bought a quad then rented out the other 3 units you'd recoup the initial investment pretty quickly, then be ready to expand your portfolio (all while letting your renters pay your mortgage!)
There is a wealth of help and info on this site to help you decide if you are cut out to be a landlord and handle everything yourself, or if using a property management company would be a better option for you.
I certainly wish I had this knowledge when I was young and without many responsibilities! Good luck and keep us updated!