20 Year Old looking to invest in real estate, best approach?

[John A.]

Hi all, I currently have about 5k in the stock market and I'm looking to branch into real estate (my parents own about $2 million in commercial/residential and are about halfway through paying it off) as soon as I can. How much do I realistically need to put forward initially to start investing in real estate? Any advice would be greatly appreciated!

P.S. I'm a sophomore studying finance at a business school so I have a strong grasp over long-term stock market investing, but much less over property rental, but I definitely subscribe to the buy and hold philosophy as opposed to the 'flipper' mentality.

[Linda S.]

If it's going to qualify for a FHA, it has to be owner occupied, so I would look to find a place where you are currently studying. Any place near a college will be an awesome rental because of the transient population. I wouldn't suggest your permanent home in Jersey, unless you plan on moving back to the area long term. Good luck!