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Rental Investing for Generation Z
Rental investing is the new shiny topic that everyone is starting to get into. It’s an incredible way to create passive income, build a large portfolio, and quit your 8-5 job. What’s better is that real estate investing now more accessible than ever and Generation Z has a unique advantage to having success in rental investing!
In short, Generation Z can begin rental investing by house hacking, taking advantage of free information, networking thorough social media, and building relationships with lenders and contractors.
As a millennial myself, I have been lucky to begin rental investing at an early age. I purchased my first property when I was 24 years old – you can read about my first property on my blog here!
However, Generation Z can get into rental investing even sooner, and build up a massive portfolio way sooner than the rest of us!
In this article I will dive into why Generation Z should consider rental investing to create passive income, and 5 specific ways to start down the road of investing in real estate today!
Why Gen Z Should Invest in Real Estate
According to a quick Google search, Generation Z is between the ages of 5 and 24 years old. As in, born between 1996 and 2015. This spans a large age group, so when talking about Generation Z at time of this writing, I am referring to those closer to the 1990’s and early 2000’s. It’s unlikely a 5 year old is reading this website!
Generation Z has more experience with technology than any of the rest of us. If you’re within this age group, you’ve grown up with a significant amount of handheld devices and screen time – so you might as well take it to your advantage!
Here are a few reasons Gen Z should invest in real estate:
- Networking for rental investing has never been easier
- You can begin real estate investing in your late teens and early 20’s
- There are countless free articles, courses, and books
- House hacking is far more socially acceptable
Below I’ll dive into 5 specific ways the Generation Z can immediately take steps to begin rental investing!
5 Steps for Gen Z to Begin Rental Investing
1. House Hack
House hacking is currently the most genius way to save money while making money.
Younger generations are buying less and renting more. If you are a Gen Z, one of the biggest pieces of advice circulating the internet is to house hack!
There are two easy ways to do this as a young adult: Buying a single family home and living in it while renting it to your friends, or purchasing a multifamily property and living in one of the units.
Never heard of this concept for of these terms? Lucky for you I have a fully detailed article about researching and finding a multifamily house hack! Don’t miss out – read it here!
2. Connect With Others Like You
Okay, so we’ve all heard the phrase that you become the 5 people who you hang out with most. Why not become an rental investor by hanging out with other investors?
One quick way that Generation Z can get involved with real estate investing is to join rental investing meet ups! This was the first step that my husband and I took a few years back.
These are quick to find on Facebook. Sure, you may sit in the back of the room or quietly listen on a Zoom meeting, but this is an invaluable resource to network with local rental investing gurus!
Here are additional ways that Gen Z can get involved with the rental community:
- Join forums like BiggerPockets
- Create an Instagram and document your progress, while networking with others
- Search for local rental investing groups on Facebook
By surrounding yourself with other interested in real estate investing, you will learn and grow in the field far faster!
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3. Build Local Networks
No matter if you’re 16 and wanting to start in rental investing or if you’re 23, this is an immediate step to take!
If you ever listen to real estate podcasts or watch videos on YouTube, you are likely to come across the topic of building your real estate investing team. This includes many people including lenders, insurance agents, contractors, real estate agents, and more.
So, sure you can sit on Zillow or DealCheck all day, but if you are not actively networking for your rental team, what’s the point?
You can absolutely network as a young adult or teenager! Go check out a book like How to Win Friends and Influence People to enhance your communication and persuasive skills and you’ll be good to go!
Here are a few ways that Gen Z can build up a network:
- Do social media searches on lenders and agents and request for a Zoom or coffee meeting. Ask each for 3 people they’d recommend to investors.
- Talk with any of your high school or college acquaintances who are started in housing or lending jobs. They are likely to be more available to talk and can connect you with others with more skills or provide you with new insight.
4. Take Advantage of Free Information
Unlike any previous generation, Generation Z has access to more free information than ever!
There are countless blogs, podcasts, videos, courses, and articles that are free for anyone to access! Now, I always suggest taking advice from people who are legitimate and not just trying to sell you something.
Nevertheless, doing your research with any form of investing is critical! As a book lover, I personally started with reading books.
Here are the best rental investing books for Generation Z:
- Rich Dad Poor Dad by Robert Kiyosaki
- Buy, Rent, Rehab, Refinance, Repeat by David Greene
- The Book on Rental Property Investing by Brandon Turner
5. Get Started Right Now
Although it is a cliché tip, this is very important. I personally know too many people who keep saying they want to invest in real estate but still have yet to do it!
If you read through my article about my first rental property that I linked to above, you’ll realize it wasn’t the best investment. It was not easy and it was isn’t the most positive cash-flowing property.
Yet, the amount of experience that my husband and I gained was invaluable! It was so good to get the experience of finding a property, getting funding, purchasing, rehabbing, and then earning monthly income.
That is experience that can never be taught through words in a book.
No matter your age, there is something you can do today to get started with rental investing! Comment below how you plan to start investing in real estate!
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