Hello everyone! While I have been a follower of MMM for a while now, this is my first post in the forums. I am looking for some advice moving forward. I know that their is not one answer to my situation, but am very curious of the different perspectives offered in the community.
Age- 24
Employment- Second job, entered workforce in July of 2017
Savings- $35k (in an Ally savings account)
401k- 3k (I have not been maxing this out just yet. My focus has been on accumulating a lot of cash and then making a plan to move forward. Also, I recently got a new job and will be making different choices after speaking with our free advisers, but advice here is welcome also).
Before tax base- $67,000. Sales role and potential earnings of close to $100k in first year.
I understand that this is a very rough picture of finances, but it should be sufficient information for the question at hand.
My issue is concerning my investment strategy moving forward, and I have essentially narrowed it down to 3 options.
1) I have been learning about, and primarily saving towards, investing in residential real estate. I have an opportunity to put a decent sum of this $35k into a down payment (FHA loan) on a three family house. I am well aware of the analysis needed on these and all of the associated expenses. While living here, it would cut my housing expenses to about $300-$400/mo, and upon moving out would provide positive cashflow after accounting for a property manager. If done properly (i.e. the right tenants and the right property) this strategy could significantly boost my savings rate and snowball into more properties/other investments. If done poorly, my savings rate would be shot (evictions, etc).
2) Take my money and invest in low-cost index funds. Keep throwing money in here and diversifying as needed.
3) Do nothing except focus on making more money and keeping expenses low. I am a real believer in the possibilities of real estate, and maybe it would be better to accumulate more capital before beginning in REI to mitigate the risks associated. (this of course brings me back to choice #1 where I could save a significant amount of money more by dramatically cutting my living expenses!).
Anyway, I apologize for the long-winded post here, but any insight is greatly appreciated!!!
**Updates**
Property- 3 family building (each is 3BR and one bath)
Purchase price will be between $300,000 and $325,000. Market rent is $1300/unit.
The area cuts the commute to work in half. The new job is a "rotational program" and I am considered a protected employee for 2 yrs.
