New to Bigger Pockets and House Hacking

[Cameron Larson]

Hello all,

My name is Cameron and I'm new to Bigger Pockets. I've been interested in real estate investing since high-school - and now at age 26, I purchased my first home in North Charleston, SC to house hack. While I have much to share about how I got here - from Rich Dad Poor Dad to learning from Brandon Turner's books - I'm interested to meet other real estate investors who I can help from my experience, and also learn something along the way. I'd love to connect with any local professionals or people just starting out like me.

I got into my first house with the advice and guidance from my uncle, who is a successful real estate agent and investor in Colorado. I feel lucky to have an advisor I can trust, as I've avoided some early-game pitfalls and learned some valuable lessons up front. That said, there was no hand holding. I've continuously pushed myself to learn, plan, and most importantly take action. I've heard that most people don't know what they're doing, but some people do it anyway.  

As for the investment, I'm looking to reduce my overall living expenses:

Previous Rent Downtown: -$1000/mo

Current Mortgage + Utilities: -$3000/mo

When Vacancies are Filled: -$600/mo (including Utilities, and saving for Vacancy 5%, Repair/Capex 5%, Property Management 8%)

Because I'm Self-Managing: -$300/mo

I'll live here for a year to satisfy FHA requirements, then find my next property. When I move out:

Cash Flow: -$100/mo

Because I'm Self-Managing: +$150/mo

Of course - there are numbers and calculations behind this which can be validated or tweaked, depending on the scenario I'm looking at. While this isn't the sexiest cash-flow scenario, I am confident this will be a positive investment and learning experience for me, even though the numbers are weak at first. 

In one hand it's "if it doesn't cash flow from day 1 don't do it." In the other hand it's analysis paralysis. Last year, in yet another moment pondering the W2 rat race, I decided it was time to finally take action. I was ready. I realized I had enough years of reading books, listening to podcasts, stockpiling money, and procrastinating. With that said, I didn't read 100 books and save up a 20% down payment. I've made plenty mistakes along the way - including lapses of judgment, periods of recklessness, and financial rock bottom. What has always stuck with me is the eternal desire for financial freedom.

This is just the beginning, and my house is the first brick. Now I'm juggling my W2 with buying furniture, marketing my rental, and staying motivated. I started this post with a million questions in my head, but I'll just ask one:

Any advice?

Of course, I welcome any and all questions and would love to share my experience thus far. 

Thanks!

[Drew Sygit]

Quote from @Cameron Larson:

Quote from @Patrick Roberts:

Is this a multifamily property or a SFR?

SFR

See if you can MTR or STR the bedrooms while you live there to build up cash for your next purchase.

It'll be difficult to rent-by-the-room once you move out, unless you stay close to the area and can self-monitor.

You should also try to refi out of the FHA loan ASAP, so you can re-use FHA on your next purchase.

For next purchase, try to buy 2-4 units with FHA. MTR or STR the other units for max cashflow.

Repeat...