How would I go about making this happen?

[Jordan Garcia]

In recent months I've grown a deep interest in real-estate rental properties, but I don't really know how I should go about doing this. I'm 17 years old and I currently work at my local fast food joint. I estimate by the time I turn 18 I'll have about 20k saved up which I planned to use as a stepping stool to start off with. I would like to buy property as soon as I turn 18 (Yes I do understand the absurdity of this) and at the moment while I'm 17 I'm trying to absorb as much knowledge as I can about the topic. The problem that I'm facing is the reality of whether this would possible or not. When I turn 18 how would I go about buying my first house realistically under my circumstances? Would I have to get an FHA Loan? Would I be able to buy the property using my parent's credit? What price range should I aim for? Would I even be able to obtain a loan? I really don't know how I should go about doing this and I was wondering what would you do in my shoes to make this happen?

[Scott P.]

Congratulations of having a job and thinking about the future!

I worked residential construction when I was 18 (actually I started younger than 18).  Consider looking for a job like that so that you'll be doing something related to houses.  Or, maybe apply for a position at a big box hardware store where, again, you'll be around home improvement products.  Or maybe look into getting a real estate license when you're 18.

You might be able to get an FHA loan and you might be able to get your parents to co-sign if they have good credit. I wouldn't do either of those if i were starting over. I would work more, save longer, and look for a duplex where you rent one side to others while living on one side. Or, look for a SFR at which you could rent rooms out.

I believe the down payment would be less in these situations than trying to buy as an "investor" who does not live in the property - even if you're actually spending less by living at home.  Also, under these ideas, if you decided you don't like being a landlord, you could always sell the property.

Don't buy in a challenging area with a lot of crime reports.  Buy in an area you know and would like to live in.