I am a firefighter with a lot of free time and job that allows me to work on other stuff while there.
My goal is to start learning all I can this year and buy my first house before 2021.
Should I start with house hacking?
love the BP podcast btw
Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
7y
@Trevor Klaus Get an FHA loan (3.5% down) and buy a 4 plex. Live in one unit and rent the other 3 out. Cheapest way to start scaling quick for a new investor.
Listen to the podcasts as much as you can. Adsorb that beautiful, free wisdom
Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
7y
@Trevor Klaus Get an FHA loan (3.5% down) and buy a 4 plex. Live in one unit and rent the other 3 out. Cheapest way to start scaling quick for a new investor.
Listen to the podcasts as much as you can. Adsorb that beautiful, free wisdom
Northern California · Member since 2019 · 3 posts · 1 vote
7y
@Michael @Charles; I'm a first time real estate investor who can't buy a quadplex in my vicinity. If I can't move in, is it still worth the quad or is a single family home a better bet? I could manage from about 2 hours away, but my 9-5 keeps me busy
Real Estate Agent · Woonsocket, RI · Member since 2018 · 11 posts · 15 votes
7y
@Luke Holmes - I would stick with a multi - Buying a single family is putting all your eggs in one basket. If you can't get a 4, try a duplex. You can still occupy it to get an FHA.
Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
7y
@Trevor Klaus congrats on getting a good jump in RE at such a young age. House hacking is a good idea. Try to get a quad if possible. There are also other ways to jump into larger MF such as syndication.
@Luke Holmes - I would stick with a multi - Buying a single family is putting all your eggs in one basket. If you can't get a 4, try a duplex. You can still occupy it to get an FHA.
Thank you Tom. Can you still "occupy" a quad if you only live there on the weekends? How does that work if you are paying rent and living elsewhere Monday through Friday?
@Michael Ablan, Tom Spackman, and Scott Morongell:
I have though a lot about purchasing a Duplex, Tri, or Quad. All of the ones I have looked at are occupied.
What do you do after you purchase the multi to be and owner occupant? Inform one of the tenant's they need to move out and give them enough notice, then move in?
If so, would I need to look at the local laws on how much notice I need to give them to move out so I can move in?
Lender · Philadelphia, PA · Member since 2018 · 58 posts · 17 votes
7y
@Michael Ablan nailed that one on the head. Even better than just doing a 3.5% down FHA, do a 3.5% down FHA 203K renovation loan. Buy a neighborhood eyesore, fix it up, and then move into one of the units and rent the other 3 units. This way you will have a house that requires minimal maintenance for the next 5-10 years and you can maximize your rents.
Lender · Philadelphia, PA · Member since 2018 · 58 posts · 17 votes
7y
@Gordon Ryan you would have the seller inform the unit that you want to occupy that they need to be out of the apartment within a certain time frame. However, the seller does have to follow the lease. So if the lease doesn't have a provision stating that they can end the lease with a certain amount of notice (generally 30-60 days), then you may not be able to kick the tenant out.
@Michael @Charles; I'm a first time real estate investor who can't buy a quadplex in my vicinity. If I can't move in, is it still worth the quad or is a single family home a better bet? I could manage from about 2 hours away, but my 9-5 keeps me busy
Luke, you could buy a quadplex without moving into the property. However, you would most likely need 20-25% down to obtain financing.
Rental Property Investor · Chantilly, VA · Member since 2017 · 104 posts · 149 votes
7y
Hey @Trevor Klaus I think a House Hack could be the perfect entry point. Here's why...
1. It will get you in the game, you will officially own real estate.
2. You will own an asset and not a liability.
3. You will dramatically decrease your living expenses, enabling you to save money more rapidly than you would if you were renting, or bought a house in which you lived alone.
4. This will enable you to move more quickly towards you second investment property, which could be another house hack, a straight rental or a number of other investment strategies as you continue to live in your house hack.
5. It is hard to mess up a house hack. So if this is your first investment, you will create a time buffer which allows you to continue to learn, build your network, save money and figure out what your strategy will be without jumping into your next investment before you are ready and able.
@Kevin Dean Thank you for the encouraging words! I am really devoted to learn all I can this year and build the connections needed to make a good investment next year. Reading "Rich Dad Poor Dad" currently!