To capitalize on this important source of financial gain, you need to start investing in real estate. So invest in real estate at 20. You'll likely never have more energy, resilience, and risk tolerance to start investing in real estate than when you're a young man or woman. By turning your home into an investment property, you can take advantage of your less-than-perfect credit, your less-than-perfect lifestyle, and your limited liabilities in an investment.
Like all investment decisions, the best real estate investments are the ones that best serve you, the investor. People invest in real estate for a number of reasons, including generating rental income, benefiting from potential long-term appreciation of property value, and reducing net taxable income. Multifamily rental properties can be another great option for those wondering how to invest in real estate at a young age. If you want to invest in a rental property but don't have the money (or the experience) to make it happen, you might want to consider a real estate company.
If you are buying a property that you plan to rent, you can benefit from your investment as soon as you find tenants. An example of an active investor in real estate is someone who self-manages a rental property rather than hiring a professional property manager. But if you can't afford that much, you may be able to purchase investment property with a minimum of 3.5% by getting an FHA loan. The 3% you may have bet on the house you currently live in is not going to work for an investment property.
If you are young and want to buy a new home to live in, you may want to consider converting it into an investment property. As with any investment, rental property isn't going to produce a large monthly salary right away, and choosing the wrong property could be a catastrophic mistake. If you don't have DIY skills, consider investing in real estate through a REIT or crowdfunding platform rather than directly in a property.