Young Beginner

[Chris Melton]

Hello BP! My name is Chris Melton, 18 years old homeschooled and about to graduate high-school. I've read "Rich dad Poor Dad, "The Cashflow Quadrant" and currently reading "The Millionaire Real Estate Investor". I am interested in rental properties to build passive income every month. I do understand that real estate is a marathon and not a sprint. The reason why I want to do this is because If I start now I can be well ahead financially in my mid to late 20's. I've done some research on FHA loan for a low down payment on multifamily properties. I don't plan on going to college because I don't want to get neck deep in debt. My personal opinion is that I would rather pay $30,000 worth of college tuition on a down payment on rental properties than to work a job and try to pay tuition off with no cashflow at all. My question is how much do I have to save on a FHA loan on a property? Also, what do you think will be the best way for me to build cashflow at this age? Any information is greatly appreciated.

Thanks, Chris

[Carolina E.]

Hi @Chris Melton. That's great you are starting young. Do you currently have work? You will need to show income when applying for a loan, maybe you can look into being a realtor. Or something with real estate, that way you are learning and showing an income. Keep in mind Investment property loans typically ask for a 20% downpayment.