How I Bought My First Real Estate Investment Property At 22-Years-Old

How I Bought My First Real Estate Investment Property When I was 22-years-old, I put a deposit down on my first property in New York City. It was a small 525 sq. ft. studio apartment in the fast developing DUMBO area of Brooklyn. DUMBO, short for Down Under the Manhattan Bridge Overpass is literally right under the Manhattan Bridge in Brooklyn, across the river from Manhattan.

The studio was in a new high-rise condominium development that had yet to be constructed. Unbeknownst to me, buying this property was one of the most dangerous but rewarding financial decisions I’d ever make.

As a senior in college, I became interested in real estate investing. I’d met a couple of older folks who owned multiple properties in my neighborhood. These unassuming “neighborhood millionaires” as I like to call them, had bought properties in the Fort Greene and Bed-Stuy areas of Brooklyn in the 80’s and early 90’s. Back in the day, you couldn’t pay people to live and buy something in those areas. Violence and abandoned properties made these neighborhoods unsafe and undesirable.

However, by the time I was ready to buy something in 2005, the home prices in these same neighborhoods had appreciated immensely. Those that had the foresight to buy and invest back in the early days became real estate rich.

My own grandmother became a real estate mogul without even trying. She’d bought a three family home pre-construction in the heart of Fort Green with no strategic plans to become a real estate investor. My grandma just wanted a place to call her own. Yet, years later, she’d also seen a tremendous increase in her home value.

Growing up and watching the neighborhood transform and seeing people build wealth through home ownership sparked my love for real estate.

I thought, if my grandmother, an immigrant who came to this country with nothing to her name and worked as a nanny could find success in real estate,  surely I could too.

With that mindset, I was determined to buy my first multifamily investment property.

Throughout college, I’d secured a well-paying internship at a Fortune 500 company. I saved approximately 90% of my income while my fellow interns spent most of their new found wealth on going out, clothes and gadgets. It’s not that I didn’t splurge here and there, I just made saving a priority.

Initially, I didn’t know what I was saving for. I just knew that one day it would benefit me to have as much cash saved up in the bank as possible.  The money saved from my internship would eventually become what I’d use for my down payment.

By the time I was ready to buy, the properties that I’d wanted were well out of my price range. Back in 2005, the minimum multifamily home purchase price in a desirable area was around $700K. Even the homes that needed major work were still out of my price range.

I just couldn’t afford anything.  

Discouraged, I thought I’d never be able to own property in the neighborhood I’d grown up in and loved. I’d even considered buying something in New Jersey since price points were more affordable.

Then, one day while I was searching for properties online, I came across an advertisement for a new luxurious high-rise condominium development in DUMBO, Brooklyn.

Even though I’d grown up in Brooklyn for most of my life, I was not familiar with the area of DUMBO. Truthfully, at 22-years-old, I’d never been to the area despite the fact that it was only 2 miles from where I lived. It wasn’t the DUMBO full of amenities that everyone knows and loves today. Back then, it was just a location extremely close to Manhattan with a lot of promise.

Studios and one-bedrooms at this new development ranged from mid $300K to $500K, which was still a little bit too expensive for a soon to be college graduate like myself. However, they were relatively much more affordable than the multi-family houses I’d been looking to buy.

I decided that I would visit the sales office and walk around the neighborhood to get a better feel for the development and the area. When I arrived at the leasing office, the developer had an impressive plan for the building and showed all the great plans for the location. I immediately became a believer in the vision for DUMBO and fell in love with the prospect of owning something.

Of all the apartments listed for sale, the only ones that I could barely “afford” were the studio apartments. Knowing that I had to act fast in order to secure a unit, I chose the lowest priced studio apartment available. I put down 10% of the purchase price and officially went into contract.

Before I knew it, it was all set, I was going to own a studio apartment in the up and coming neighborhood of DUMBO!

When the excitement wore off and reality hit, I quickly realized that I may have bitten off more than I could chew.

Could I really afford this condo unit?

Not only did I not have any money left (I’d used it all on the down payment), I would still need to save an additional 10% down payment, closing costs and qualify for a mortgage in order to seal the deal.

Luckily for me, the building wasn’t set to be complete for another two years. The developers hadn’t even broken ground yet when I put my deposit down.

While it was torture to have to wait another two years for the building to be complete, the additional time was exactly what I needed to save more money.

Upon graduation, I was hired full time by the company I’d interned for throughout college. It was reassuring to know that I would have a stable income to rely on once the building was completed. I was also able to live with my mom during that time which helped me save money on rent. It was during these two years of the building’s construction, that I worked hard, lived below my means and became even more of a super saver.

I knew in the beginning of my working career that my paycheck would only be just enough to cover the mortgage. I also knew that I would earn more income over time as and eventually, I’d be able to widen the gap between my income and living expenses.

Until then, I planned to save as much as possible while the building was in construction. I knew that my savings would have to cover the majority of my living expenses once I moved in.

Timing was on my side again when it finally came time to close on my condo in 2007. When I started to apply for mortgages, the real estate bubble was at an all-time frenzy. I didn’t have to show proof of income to get approved for my loan.  I was one of the many people that got approved for a mortgage they couldn’t afford.  Nonetheless, I was able to close and move into my condo.

Interestingly enough, by the time construction was completed, my unit had appreciated almost 20% above the purchase price. I’d made money on the deal before I even moved in. So while I was taking on a huge risk with my income just barely being able to cover the mortgage, I was fairly confident that in the worst case scenario, I could sell or rent the condo out.

Me In My Real Estate Investment Property Me when I first moved into my DUMBO condo

Fast forward a couple years later, just as I’d expected, my income finally got to the point where I was able to cover the mortgage and start saving again.  Almost 12 years later, the condo has almost doubled in value.  And while many neighborhoods have seen property values rise and decline since the real estate crisis of the 2000’s, DUMBO has only thrived. It’s even considered “one of the most expensive place to live in Brooklyn” by NY TIMES.

I no longer live in my sweet little condo in DUMBO but I still own it and rent it out. The rent more than covers the mortgage and other related rental expenses. The extra cash flow from the condo also helps to pay the additional amount we pay on our primary mortgage.

Looking back, the following factors contributed to my success:

  • The Real Estate Bubble– Although I was priced out of the real estate market, the appreciating home prices and lack of mortgage lending regulations allowed me to qualify for a loan I couldn’t afford.
  • The Ability To Adapt– When I first looked at buying real estate, I’d never even considered buying a condo. I had my heart set on a multifamily property. When I realized that was out of my reach, I adjusted my goals and started to look for other opportunities.
  • Supportive Family– My mom allowed me to live rent free at home during the condo construction phase. She also gave me money towards the down payment as a gift. This was instrumental in me being able to save as much as I did.
  • Strong Income– I was very strategic in picking my major in college (Business Management) & had applied for an internship program my freshman year in college. This internship allowed me to earn a decent income while I was in college.
  • A Savers Mindset– I saved almost 90% of my internship checks and went on to save a majority of my paychecks once I became a full-time worker. I prioritized saving over spending.
  • Seeing Other People Actually Do It– It would’ve been hard for me to understand that creating wealth in real estate was achievable. I saw first-hand it could be done from watching other people in my neighborhood and following the example of my grandmother.
  • Belief In Self– Having a strong belief in my abilities was instrumental to my success. I had to have the confidence to follow through with my ideas even when it seemed impossible.


Perhaps you’re not working with the same deck of cards that I was dealt. Don’t be discouraged. While you can’t control the external factors, such as the economy or the ability or willingness of family to help, there are a lot of things you can control. How you view yourself, your commitment to better saving and your ability to adapt to change are all things you can focus on improving.

All the factors mentioned above along with youthful optimism allowed me to take on the biggest risk of my life. Yet this big risk had a big reward. The purchase of my first real estate property at 22-years-old ultimately jump-started me on my journey to financial freedom and wealth.

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35 Responses

  1. Love your photo and the story. Very impressed at how young you started on your journey – we were backpacking around Europe at aged 22 and came home with $0 to our names!

    Appreciate timing has helped, but the pre-requisite was all your hard work. Love how you are showing it is not just about ‘luck’.

    1. Thanks! I wanted to make sure that all came across in the story. Backpacking around Europe at 22 is also impressive. Its so much easier to do things like that before kids and real responsibilities hit you.

  2. You really made a great investment there. You saw that there’s potential in that place and that what makes you a real estate mogul (in the making). Congratulations. Off you go to more investments in real estate. 🙂

  3. Congrats, glad it worked out! I hate to hear about deposit horror stories when the building is never finished. For example, if you put down your deposit in 2007 with an expected open in 2009, they might have paused or canceled construction until the economy rebounded.

    Have you considered doing a 1031 exchange to swap your condo for multiple single family homes in a less expensive area? Without looking too into numbers, I bet you could double or triple your cash flow.

    1. Thanks Brian. My husband and I actually did out a deposit down on a pre built condominium in 2007 with a 2009 open in downtown bk, and it we almost lost our deposit but we were able to salvage it all and come out with our heads above the water. I will def write a post about it because It was a total different scenario than what happened in DUMBO.

      As for selling the DUMBO condo to redeploy the funds for a maximum return , I’m not there yet. It’s an emotional investment for me and allows me to own something in an area that is just hard for many to get a piece of. It will be paid off by the time were 56 and we can use it as extra retirement income, move into it to downsize once kids leave the nest or allow kids to use it when they are starting out their lives.

      Thx for stopping by and reading!

      1. Wow close call!

        That’s great to hear you might move back in one day. Definitely makes sense.

  4. Great story and very inspirational. My parents have owned a 2 family brownstone in Clinton Hill for over 30 years and while they used to rent out the first floor back in the day, my sister lives there now, so they have not been able to reap the benefits of the current booming rental market in the area. I really am trying to get a battery in my back to take on a major upgrade and possibly convert it to a 3 family so that we can get some rental income from the property. I unfortunately have my own house/mortgage and growing family expenses but I really really want to take it on for the family legacy and residual income, I just don’t know where to start?!

    1. Wow thats some great real estate to own. I love the Clinton Hill area. It does sound like a big undertaking. I can imagine there is quite a bit of equity in the home since they owned it for so long. Maybe it’s something you and your sister can do together some day down the line?

  5. I enjoyed reading your blog post. But something has to be said about experience, knowledge, access and resources to build wealth. For example, your grandmother owned property which you learned was something one must do which helped you build wealth. You also had a stable income and financially supportive parents which many college students, now, don’t always manage to acquire college.

    1. Hi Rachel! Thanks so much for reading and commenting. I had some advantages that not all people have access too, can’t deny that. My mom was a single mom who worked her butt off as a social worker to do the best she could and my grandmother worked as a nanny and saved every penny to buy her house. Neither of them were high income earners so I saw from experience what hard work and being smart with money could do. I think we are in the information age now that while you may be disadvantaged by the money habits and financial situation of your family when you are young, at some point it’s up to the individual to seek out more information and learn how they can improve their habits and financial standing. This is one of the main reasons that I started the blog, so that I can help teach and show others that reaching Financial Freedom can be done regardless of where you start out. Maybe someone won’t be able to buy an investment property at 22 but it can be done at 32, or 42. Anything is possible if you set the intention and work towards it.

  6. This is such an inspiring story! Having a supportive family is so helpful and important when purchasing a home. My husband and I were very lucky to have supportive parents who helped us immensely with our first London house purchase.

    1. Yes , my mom’s support was very key in the process. It’s the kind of thing I’d want to do for my children too. Having supportive parents even if they can help you financially goes a long way

  7. Wow that’s fab – I bought my first property in the centre of Edinburgh when I was 20 – before the big property boom and wish I’d kept it and rented it out!

    1. Wow , 20’s pretty young. Hindsight is 20/20 , my husband and I went on to buy a condo we eventually sold that I kinda which we would’ve kept too.

  8. To be 22 and own a piece of America….you must have done something right!!! I bought my first house in California at 25… was right when the market was about to boom….I got it for $165K…and in 3 years, sold it at $313K. The most money I’ve made in my life time. Then I bought another house for $305K….sold it 3 years later at $765K….it was insane! Thanks for sharing!!!

  9. Great story. Buying has been on my agenda since i left undergrad but i’ve only recently settled in a place i actually want to be. one of my first goals upon leaving graduate school is real estate. Thanks for sharing!

    1. You’re welcome! Just continue to save up and keep up with the market. You just never know when the perfect opportunity will come your way. Also don’t be afraid to look in lower cost of living markets

  10. Thank you for sharing your story! As a Millennial with an entry level salary, I feel like all of the statistics keep telling me that home ownership will be impossible. Your strategies are practical, regardless of the time period in the real estate market 🙂

    1. Thanks Mia! Yes it especially seems harder when you live in a HCOL area but don’t be too discouraged. You can look for opportunities in surrounding areas too that are not as expensive.

  11. OMG I’m 22 now, and can’t imagine taking that big of a risk!! Good for you for following your intuition and having the foresight to know that this could work. Love that picture of you when you first moved in!

  12. I didn’t know that it’s wise to buy a pre-construction property because the value will appreciate in time. My sister wants to have a place that she can call her own but doesn’t know what to buy. My aunt suggested purchasing a real estate property and shared this article with her.

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