19 Year Old working part-time wanting to buy property

[Mark H.]

Hello everyone, I am currently 19 years old and in college for IT, however I am very interested in real estate - my parents have about 10 SFH and I grew up surrounded by talks of real estate, and I know it is something I really want to do. However, at the moment I can only work part-time, making less than 20k a year.

The idea of "house hacking" seems like the best option for my situation IMHO, and a decent multifamily in my area can go for around 100k. My hopes are that I could finance this purchase with a 3.5% down FHA loan. I have decent credit (>700), and a few years of credit history. My parents will not cosign for me, so I would like to do this on my own. My question is: how much money do you all think I should save up before jumping in?

Here is how the numbers play out in my head for a 100k property:

3.5% down payment - $3500

Closing costs (5%) - $5000

Home Inspection - $300

6 Months expenses - ~$600/month * 6 = ~$3600

Repairs? - ???

Total - $12,400 + Repairs

So I suppose it would be wise to save at least ~$12,000 before purchasing my first property? I know there are ways to do it with way less...however I would prefer to minimize my risk and have reserves in my bank account so that if I get hit with a large expense I am not SOL and broke. Please share your thoughts, and any tips you may have! 

Thanks everyone!

[Craig Curelop]

@Mark H - It is extremely difficult to give you a number without knowing the deal. Repairs, capex, and vacancy are huge factors that need to be considered. You will also want a bit of a cushion for the unforeseen things. 

I would recommend saving  at least $20k. 

The fact that you have this mindset at 19 years old is a great start. I highly recommend you read Scott Trench's book, Set for Life. He talks about how to start building your nest egg at a young age by cutting out your biggest expenses. 

https://www.biggerpockets.com/store/store_front

If you buy your first property by the time you're 20, 21, or even 22, you will be in a great position!