Murrysville, PA · Member since 2017 · 11 posts · 4 votes
Hi all,
I am hopefully, very soon, going to be a first time investor using the house hacking strategy. For the past year, I have been educating myself using books, forums, podcasts, networking etc. With that said, I was wondering if anyone has any first-hand knowledge to fill in any gaps that you can't really learn when simply educating yourself? Any advice is appreciated!
Real Estate Consultant · Colorado Springs, CO · Member since 2017 · 354 posts · 386 votes
8y
Hey there- we help clients get into investment properties in Denver and Colorado Springs, and would say the main thing is to be very clear on what your most important metric is (cash on cash, cash flow, cap rate, etc.) because we often see people look at multiple metrics, which can make it very hard to make a decision. So, know the metric you care about most.
You should get in the habit (if you aren't already) of running deals on a spreadsheet and looking for deals and or errors in your number. BiggerPockets also has a calculator to help you figure these out but I like doing my own so that I know exactly how I'm running my numbers.
Redfin is actually an excellent source for info on the house - mortgage numbers, taxes, insurance, etc. Don't forget about utilities (if you plan on covering any.) Rentometer will also give you a great numbers on predicted rents (if you plan on renting.)
Real Estate Consultant · Colorado Springs, CO · Member since 2017 · 354 posts · 386 votes
8y
Hey there- we help clients get into investment properties in Denver and Colorado Springs, and would say the main thing is to be very clear on what your most important metric is (cash on cash, cash flow, cap rate, etc.) because we often see people look at multiple metrics, which can make it very hard to make a decision. So, know the metric you care about most.
You should get in the habit (if you aren't already) of running deals on a spreadsheet and looking for deals and or errors in your number. BiggerPockets also has a calculator to help you figure these out but I like doing my own so that I know exactly how I'm running my numbers.
Redfin is actually an excellent source for info on the house - mortgage numbers, taxes, insurance, etc. Don't forget about utilities (if you plan on covering any.) Rentometer will also give you a great numbers on predicted rents (if you plan on renting.)
Honestly you'll probably learn more while closing on your first deal than in all of the books/forums/posts you've every read - this is coming from personal experience.
One thing I would highly recommend during escrow - order a full property inspection and be there when the inspector is on suite doing their thing. Walk around with them, ask them questions about anything that comes to mind, ask them to point out any discrepancies that they note.
You'll have to learn how homes are built and operate to be successful in this business and this is the best way to start with that.
Investor · Seminole, FL · Member since 2016 · 94 posts · 41 votes
8y
Hi Devin,
I agree with Anton - find some criteria you like and get after your first deal. The more you do the easier it gets. The first one is always the biggest and you learn the most.