At 22, He's Making $120K And Asks If He Should Buy A Duplex And Continue Living With His Parents. 'I Wanna Make My Money Work For Me'

A 22-year-old with a $120,000 yearly wage turned to Reddit for proposal connected whether to bargain a duplex portion continuing to unrecorded rent-free with his parents. The poster has already maxed retired his 401(k), saved $32,000 successful cash, and built up $6,000 successful an concern account.

“I wanna marque my wealth enactment for maine and marque much money,” helium wrote connected r/personalfinance recently.

Commenters were speedy to praise his fiscal habits, with galore encouraging him to enactment with his parents and absorption connected investing alternatively than jumping into existent estate. “You are precise fortunate and tin acceptable yourself up ace good by redeeming 80% for the adjacent 3 years,” 1 idiosyncratic said. “Keep pounding savings portion surviving astatine home.”

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Another added, “You’re already the benignant to beryllium successful. If you’re 22 and you tin hold gratification similar this, I’d beryllium amazed if your nett worthy doesn’t deed $10 cardinal successful your lifetime.”

Still, the main question was whether buying a duplex made sense. The idea: bargain a property, rent retired 1 fractional and either unrecorded successful the different oregon support surviving astatine location for a fewer years.

But the Reddit assemblage had immoderate warnings.

“Being a landlord is simply a job,” 1 wrote. “Renting tin beryllium a nightmare,” different added, “Tenants destruct properties, and it tin beryllium a ton of work.” Some shared fearfulness stories of tenants burning garbage indoors oregon refusing to wage for indispensable services.

“Vet the crap retired of imaginable renters if you bash this,” 1 longtime landlord said. “And determination is ever something.”

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Others added that portion existent property tin enactment retired implicit time, it’s not ever amended than banal marketplace investing. “The equity successful my location has mode outpaced my savings,” 1 commenter shared. Another disagreed: “Stocks person vastly over-performed existent property successful my country implicit the past 5 years.”

Many advised keeping things elemental and passive. “I dump everything into market-weighted indexes,” 1 idiosyncratic said. “It returns amended than immoderate different concern for the magnitude of enactment required.”

“Real property is not going to instrumentality 10% of compound interest,” different added. “The banal marketplace will.”

That sentiment aligns with platforms similar Fundrise, which let mundane investors to summation vulnerability to existent property without dealing with tenants oregon maintenance. Fundrise has managed billions of dollars for hundreds of thousands of investors and offers diversified entree to backstage marketplace existent property and tech investments with a minimum concern arsenic debased arsenic $10.