Buying Rental Properties at 23 WITHOUT a High Income
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- Опубликовано: 27 июл 2024
- Most people assume that buying rental properties is only for those making six-figure salaries. How can the average American afford the sizeable down payment and high interest rates of today’s housing market? Let us introduce you to Tiffany, a twenty-three-year-old from Colorado who’s using her $41,000 salary to build wealth at an early age. Tiffany is doing this all while bringing in just a few thousand dollars a month without a four-year degree. She’s ready to buy her second property this year but wants to speed up her timeline.
With a smaller salary, Tiffany has had to be smart with her expenses. She’s already house hacking, allowing her to wipe out a significant portion of her mortgage. She also has side hustles and keeps her costs low to save as much as she can every month. But, with years of experience in her social media management job, she could be leaving money on the table by not job hopping to greener pastures with bigger paychecks. This could make a HUGE difference on her bottom line every month.
Tiffany is also debating whether a college degree is worth it as she looks to bring home a business degree. With “RUclips University” and numerous free and low-cost education platforms online, Tiffany doesn’t know whether a college degree is what it once was and wants to be sure the investment she’s making will pay dividends, not just present her with a glorified piece of paper. So, if you’re starting your investing journey or want to invest on a lower income, this is the episode for you!
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Episode 387
00:00 Intro
01:32 Money Moment
02:21 Income, Expenses, Assets, and Debt
05:10 Boosting Your Income
12:24 The Next Property Purchase
23:07 Is a College Degree Worth the Price?
37:22 Killing it At 23!
#biggerpockets #biggerpocketsmoney
![MORTAL KOMBAT 1 - KOMBAT PACK 2 REVEAL TRAILER!! [REACTION]](http://i.ytimg.com/vi/Mi2M58zEQVc/mqdefault.jpg)
I’m so proud of Tiffany. She’s a very smart and disciplined young woman. I see a Millionaire by the age of 30. Mindy & Scott thanks for having on BP Money Podcast.
Also, I have goosebumps listening to this young woman speak. How amazing that she has this clarity at this age. I wish I had!
She’s amazing she’ll do great
@@violatebah absolutely
Very impressive & extremely inspiring. I’m 47 years old & blew up my life to only be starting from scratch NOW! Boy, do I wish I had the type of intelligence Tiffany has when I was her age. Shoot, even now lol. Great episode.
This is lovely, she has the right mind-set and goals. At her age I was busy cashing in my 401K. I learned my lesson and made better decisions but at 23, nope. She is going to be rolling in it!
You are sweet! Thank you. So if you were 23 again, would you focus on getting rentals instead of your 401K
@@tiffanyonwudinanti 401/ ira does not beat out real estate or buying individual stocks. Amazon is like 49,000 percentage up. 401 matching is just 100 with matching up to. Certain amt and has multitude of restrictions
This woman actually has a masters degree in finance! Skip the bachelors degree and put that money towards buying rentals. You can always go back to school but make that investment now. Way higher payoff and real wealth building.
If I had this mindset at her age I wouldbt be about to clock in to my job right now 😢. Good for her!
It’s not to late! You’re listening to BiggerPockets, which is more than enough education to take action!!
@@tiffanyonwudinanti yeah ive taken action but im living clock in life for a fee more yearsbl bc I was oblivious af at your age lol
She should consider side hustling in some extra cash. Just an extra $1000 a month would make a huge difference in her life.
What an awesome 23 year old ❤ very smart young adult.
Also, remember to always negotiate. Just because the median salary is 50k that doesn’t mean that’s what you accept. Especially with 5yrs of experience! You can easily get a job making AT LEAST 70k, with a nice sign on bonus.
This is good! Thank you :)
Yes! I just looked up an average social media manager's salary in Denver and it's about 50K-70K but 5 years of experience?....70K+! Rooting for you Tiffany! Keep going!!!
That FHA assumable is a mind blower!
VA loans are also assumable but you need to make sure your lender is knowledgeable about VA loans and can do it. Very few truly understand how. VA loans are not like FHA loans where it's not meant for investors. VA loans are investor friendly but you do have to live in them at first.
Congratulations I’m 23 my self and this is a perfect example of what I want to do
Congratulations Queen 🎉❤keep the amazing 🤩 hard work stay blessed
This was very inspiring!!! Only 23yrs old, that’s amazing
She is doing well at her age for sure. My only comment would be the host saying she is totally debt free but has a mortgage. Mortgage is still debt but she is making it work for her 😊
What a brilliant mind she has wow!! She can definitely look into starting a RUclips channel and talk about her journey
Great 23 year old..keep doing what you do!!
College. The more you know, the better you are. Learn from what ever resources are available to you at any point in your life. Do not box yourself into thinking there is only one protocol to reach your desired result. This young lady is already a talented mulit-tasker. Granted, there is a limited to how many irons in the fire you can manage at a given moment. But most people should be able to manage two or three over the course of a day.
So, Learn by doing and learn by reading and learn by example and learn from other people's experiences and learn from classroom attendance.
I wish I understood that years ago.
Great interview!
Why not work for a large company that will pay your tuition?
Chiefs fan here! 2023 Super Bowl champs to be exact😂😂😂!!!
She is doing so good 😊
Loved this episode sooo much! She is so inspiring. Could you guys elaborate on how she was able to get a conventional loan with only 3% down? I thought conventional required 20%. Thank you!
I keep thinking about this podcast and trying to figure out how I can apply this technique. I just can’t wrap my head around the numbers. This is where I’m at… She said she paid 3% down, which was 9k, which means the house was 290K-ish. If it’s under 20% she would also need to pay a PMI of roughly $75 to $100 dollars per 100K so let’s say pmi is $225 a month. At 2% apr the min mortgage amount I calculate over a 30yr fixed is 1400 a month. How is the mortgage $1100? Could you all please provide some actual figures? I’m sorry this is so long. I’m determined to make this happen!
was probably 3.5 with an fha loan
Good question! I’m wondering as well. I brought my first investment with a conventional loan but I had to put 5% down (still really good of course)..I’m curious how she was able to do it was 3%
@@Kdogg1030 she said 3% with a conventional
You can get a conventional loan for less than 20%. You just have to pay PMI.
Smart 23 year old!!
How come I only come across this channel even though I am already subscribed to the biggerpockets main. Man this is really helpful. Great work guys!
I am really trying to figure out how this loan assuming works
Omg we have a similar portfolio and this also gave me some confirmations I needed ! Does she have an IG I would love to keep up with her journey ?
I’m interested
For me its the fact that RUclips know that I make no money to recommend me some stuff like this
She should look at getting ceritificates in these areas of marketing. Or she will save by going to a states school for a Master's degree and pay cash like she did undergrad. I wish I had understood this when I went to grad school.
Or state schools that have online master's degrees. No one really cares where you get the degree, just that you have it. Going to the cheapest option is best. All of our schools are outrageously overpriced.
Colorado here!
Let’s connect on the BiggerPockets Forums!!
Yes do a show on the self-directed 401k when self-employed!
I would not change and go corp to much stress. Go government or another college and do your own part time own business.
I would do one more year at University and talk to asvisors then. Having more than an associates is better.
🤔💭
Why so many adds
Please do the solo and self-directed IRA. She is impressive and inspring at such a young age! I would say to explore educaton since she may be able to explore other untapped marketable skills that will offer her a more significant salary.
I can use her help with Social Media Management. I'd hire her
Yesssss T!ff 👏🏾👏🏾👏🏾
what happened to the other Bigger Pockets hosts?
Smart woman so Young
How does that look for her charging jobs and trying to get a another house.
$30 for restaurants? Geez I wish. 1 drink is 30 in Ny. Ugh
I'll have to be financially stable in every sense before purchasing my first house. The best thing to do with your money is to invest rightly because money left saving will end up with no returns.
from a personal angle I'm aware continuing to invest in periods of higher volatility is a Smart way to build wealth.
I understand but that's overkill. If most people did that - they would never own one. The 10-15% rule is enough - especially if you make even more with multiple streams of income. My investment pay for my properties. It's many different things you can do to afford easily and responsibly. You don't need a million cash to afford one, My first house was 100k put down 20k- financed 80k. Then traded up to more expensive houses.
Now I have an 6, so it's not hard at all, Especially if you are making 20-25k plus a month with little to no debt with multiple streams and assets that produce income.
She is a Gen. Just ask for a raise and use Glass door as a Salary reference.
1st! Also f u to all the bots bound to come on this comment section.
Funny, Scott!
Sounds like someone in a position to take advantage of the working poor!!!!! Why do they often have landlords on when some of them they take advantage of people so often?
Mindy is so fake It's cringy.
I did an FHA w/203k loan years back and I believe they stipulated that I live in the house for 5 years. I could be wrong.
Really? Wow, have times changed. Now it’s “intended the homeowner lives in the property for a year”. Would go back and advise your younger self to use the FHA 203K loan?
It's one year now.
“Everything $50”
The specific dollar amounts were rounded ;)