Real Estate Rookie Podcast Summary
Episode: How This 22-Year-Old Bought a Duplex with 5% Down and Zero Experience
Release Date: June 10, 2025
Hosts: Ashley Kehr and Tony J. Robinson
Guest: Steel Evangelisti
Introduction to Steel Evangelisti
In this episode of the Real Estate Rookie podcast, hosts Ashley Kehr and Tony J. Robinson welcome Steel Evangelisti, a remarkable 22-year-old real estate investor who has successfully closed two deals despite having no prior experience.
Ashley Kerr: "Our guest today, Steel Evangelisti, didn't let any of that stop him. At just 22 years old, he's two deals deep and showing a whole lot of hustle." [00:16]
Steel's Journey into Real Estate
Steel shares his early foray into investing, beginning with stocks before discovering his passion for real estate.
Steel Evangelisti: "Once I got into it a little bit, I couldn't stop it. You know, everyone calls it the real estate bug. Once I had the bug, I could not get rid of it." [00:49]
First Real Estate Deal: House Hacking a Duplex
Finding the Property
Steel found his first investment property through MLS listings on Zillow while still in college. His familiarity with his hometown market provided him with a strategic advantage.
Steel Evangelisti: "Throughout my entire college life... I knew once I graduated and got hired for a full-time job that I would be house hacking immediately." [02:05]
Negotiating the Purchase
Upon finding a duplex undervalued by $20,000, Steel and his real estate agent swiftly made an offer. Through strategic negotiation, they successfully reduced the purchase price by an additional $5,000.
Steel Evangelisti: "I end up getting it for five grand under what I was originally offering. And I was like, oh, this is even better." [04:23]
Financing the Purchase
Instead of the anticipated 3.5% FHA loan, Steel opted for a 5% down conventional loan complemented by a 3% seller assistance to cover closing costs.
Steel Evangelisti: "Once I realized that, I decided to go with the 5% down conventional loan, did 3% seller assistance towards your closing cost." [04:39]
Ashley Kerr: "Can you talk about that seller assist, what is that and how did you get it?" [05:31]
Steel Evangelisti: "It's like a chunk of cash that the seller is willing to take off their proceeds and put towards the buyer's closing cost." [05:34]
Renovations and Overcoming Challenges
Despite having no construction experience, Steel undertook extensive renovations on the property, primarily using online tutorials to guide him.
Steel Evangelisti: "I walked in day one, got a renter into the unit that was vacant for $900. So that's immediately $900 more than what the previous owner was making." [06:25]
However, unexpected issues like a leaking porch roof and car troubles tested his resilience and financial preparedness.
Steel Evangelisti: "I spent three grand on this roof that I didn't know was an issue. And now my car is like completely shot because the mechanic hooked my battery up wrong." [12:11]
Second Real Estate Deal: Expanding the Portfolio
Finding the Second Property
Steel located his second deal on Zillow, targeting a $240,000 property that others, including investors, had overlooked.
Steel Evangelisti: "Find this one on the market. It just got forgotten about by people, by investors. Got it for $240,000." [14:38]
Financing the Second Purchase
Utilizing the same financing strategies, Steel secured a 5% down conventional loan with additional seller assistance to cover transfer taxes, totaling $17,000 upfront.
Steel Evangelisti: "I did a 5% down conventional loan with this one specifically I did a deal where the seller covered my transfer tax." [15:58]
Cash Flow and Financial Management
Currently, Steel's first property yields approximately $300 to $400 monthly after accounting for a high-interest rate and necessary capital expenditures (CapEx).
Steel Evangelisti: "I set aside a lot for Capex because it's an older home. This one's from 1924, so like you have to put away a ton of money for Capex." [17:43]
The second property, once renovated, is projected to generate between $2,800 to $3,000 monthly, translating to about $400 in cash flow.
Steel Evangelisti: "With me living in it as is, it would break even about $2,400 a month of income. Once I'm done with it, I'll get $2,800 to $3,000 of income." [17:39]
Lessons and Advice for Rookies
Financial Strategies
Steel emphasizes the importance of paying down the principal on loans to reduce interest over time. He also suggests making biweekly mortgage payments to accelerate loan repayment.
Steel Evangelisti: "If you're not doing that [principal pay down], that's like I do an extra $100 a month towards my principal. It changes your interest that you pay over time by insane amounts." [19:31]
Ashley Kerr: "Pay every two weeks instead of every month because if you pay like your mortgage payment, like half of it a little bit early, it will reduce your interest paid over time too." [19:49]
House Hacking Tips
Contrary to popular belief, house hacking doesn't solely involve purchasing multifamily properties. It can be as simple as renting out a room or living with a partner while covering mortgage expenses.
Steel Evangelisti: "House hacking does not have to be buying a duplex. It can be renting out a room in your house, having your best friend pay some rent, even just living with a boyfriend or girlfriend." [20:12]
Ashley Kerr: "It's a way to cut down on your monthly payments towards your largest bill every month and put more money in your pocket." [20:12]
Conclusion and Contact Information
Steel shares his journey to inspire other aspiring real estate investors and provides avenues for further engagement.
Steel Evangelisti: "The first place I'd go to is Steel City on Instagram. That's my real estate account. We're trying to hit $10 million in sales by the end of the year." [21:34]
Ashley Kerr: "Thank you so much, and we'll see you guys on the next episode of Real Estate Rookie." [21:54]
Key Takeaways:
- Start Early: Steel's success underscores the benefits of starting real estate investing at a young age.
- Strategic Financing: Leveraging seller assistance and conventional loans can make initial investments more affordable.
- Resourcefulness: Utilizing online resources like YouTube can empower investors with no prior experience to undertake renovations.
- Resilience: Being prepared for unexpected challenges is crucial in the real estate journey.
- Flexible House Hacking: House hacking can be tailored to individual circumstances beyond traditional multifamily properties.
For more insights and detailed strategies, listeners are encouraged to follow Steel Evangelisti on Instagram and join the BiggerPockets community.