Look, I get it—investing in real estate in your 20s feels impossible. But take inspiration from Arnold Schwarzenegger.

At 22, before he was a movie star, Arnold bought his first rental property with savings from bodybuilding. That real estate income helped him grow wealth while building his career. By using smarts where others use cash, he didn’t need a huge down payment or perfect credit. You can, too; let’s show you how.

1. Become a Live-In Landlord

Most people think you need to save up for a second property before you can start making rental income, but house hacking flips that idea.

The concept is simple:

• Buy a multi-family property (like a duplex, triplex, or fourplex).
• Live in one unit.
• Rent out the others.

You’ll use the rental income from your tenants to offset your mortgage payments, meaning you can essentially live for free or at a significantly reduced cost.

The Perk?

You don’t need a huge down payment. With an FHA loan in the U.S., for example, you can put down as little as 3.5%. Not only does this allow you to start building equity immediately, but you also gain experience as a landlord and property manager early in life. Over time, you can roll the equity and savings from living rent-free into other investments.

2. Scale Rapidly with Minimal Cash

Buy, Rehab, Rent, Refinance, Repeat—has been a favourite strategy for savvy real estate investors, but it’s still under the radar for many young people.

Why it’s powerful:

After buying a distressed property at a low price, you rehab it to increase its value and rent it out to cover your expenses.

Your next step would be to refinance it to pull out your original capital (or even more than you initially invested). This allows you to “reuse the same money” to keep investing in new properties. While this method requires more hands-on effort, It’s a solid shot at building a real estate portfolio with a limited budget.

Pro Tip:

Start with properties that don’t need a total overhaul but rather cosmetic updates (like flooring or paint) to reduce the upfront costs. The sooner you can turn the property around and refinance, the faster you can move on to the next project.

3. Real Estate Syndication:

While it sounds like a name straight out of a mafia movie, real estate syndication is actually quite straightforward.

Here, multiple investors pool their resources to invest in large-scale properties, such as apartment complexes, office buildings, or commercial properties. While traditionally, this was only accessible to high-net-worth individuals, modern crowdfunding platforms have democratized this approach.

Through real estate crowdfunding platforms like Fundrise or RealtyMogul, you can invest as little as $500 to $1,000. This offers exposure to properties like the Emerald of Katong that would otherwise be out of reach for a solo investor.

Next-Level Idea:

If you’re ambitious, consider taking the lead in syndication deals. Network with more experienced investors, leverage their knowledge and structure deals yourself. In this way, you can begin to scale your involvement in real estate from a passive investor to an active deal-maker.

4. Co-Investing with Friends or Family:

The idea of pooling money with friends or family is often dismissed as too risky, but with the right agreements in place, it can even the odds in your favour.

Here’s the trick: treat it like a business deal.

Create a formal operating agreement that outlines each party’s financial contribution, responsibilities, and exit strategy. You can form an LLC to protect everyone legally and ensure that disputes (if they arise) are handled professionally.

Under-the-Radar Play:

If your friends or family don’t have cash, think beyond just financial contributions. Perhaps one partner has renovation skills, another has marketing expertise, and you’re the one with the vision.

Pool your collective skills to minimize expenses and boost property value, increasing everyone’s return on investment.

5. Real Estate Option Contracts:

Most new investors focus on buying properties outright, but there’s a more creative way to gain control over real estate without actually purchasing it.

An option contract gives you the purchasing right (without obligation) to buy a property at a predetermined price in the future. You typically pay a small upfront fee for this right, but if the property increases in value, you can exercise the option and buy it at a discount. If not, you can walk away with minimal losses.

For example:

If you find a property with future development plans (like this Emerald of Katong), go ahead and procure it. Rest assured, it will be appreciated. An option contract allows you to secure such a property now without needing to finance the full purchase.

Hidden Opportunity:

In your 20s, time is your biggest advantage. You can afford to sit on these contracts and let the market do the heavy lifting.

Options contracts work particularly well in up-and-coming neighbourhoods where you anticipate high appreciation.

6. Earn Without Owning Property:

If you’re still building your savings or credit, you can start in real estate without actually buying property by becoming a bird dog.

In this role, you act as a “scout” for real estate investors, finding off-market properties or distressed homes that are great investment opportunities. In return, investors pay you a finder’s fee for each property they end up purchasing.

This not only builds your network in the real estate community but also gives you first-hand knowledge of how deals are structured and how to spot undervalued properties.

Next-Level Tactic:

Take things to the next level by negotiating a small equity stake in the properties you help source rather than just a flat fee. Over time, this equity can grow significantly, adding to your wealth without having put in any upfront capital.

7. Flip Contracts, Not Houses

Real estate wholesaling is another way to generate income in real estate without actually owning property. As a wholesaler, you find motivated sellers (usually distressed properties) and negotiate to buy their home at a discounted price.

Instead of purchasing the property yourself, you assign the purchase contract to another investor for a fee, making a profit on the difference.

Wholesaling allows you to make money from the spread between the seller’s price and the investor’s price, all without taking on the risk of property ownership.

Pro Tip:

Build relationships with investors who specialize in flipping houses or rental properties so you always have a buyer ready when you find a good deal. This will allow you to move faster and scale your operations.

8. Consider Long-Distance Real Estate Investing

The notion of investing in your local market is ingrained in many first-time real estate investors, but it can be limiting—especially if you live in an expensive city. Enter long-distance investing.

With the right team in place (local property managers, contractors, and agents), you can invest in high-growth areas where properties are much more affordable.

Many markets in the U.S. (and globally) offer excellent rental yields and appreciation potential, but most local investors aren’t aware of them.

By investing long-distance, you can tap into these undervalued areas and build a diversified real estate portfolio.

Pro Tip:

Use platforms like Roofstock, which allow you to buy single-family rentals that are already tenant-occupied and cash-flow positive in markets across the country.

Final Thoughts

Investing in real estate in your 20s doesn’t require you to follow the well-worn path of saving for a traditional home purchase.

The key is to leverage strategies that capitalize on your current strengths (time, network, creativity) and mitigate common limitations (capital, credit). The earlier you start, the more you benefit from compounding growth over time.