So much learned, Where to begin...

[Tony Pellettieri]

Hello and thank you for taking a moment to read my posting,

My name is Tony, I'm 28, married, have two kids, live in charlotte, NC, and like many have a desire to achieve success in life. In the middle of 2017 I left the restaurant industry having been a server for 7 years, making fairly decent money, to pursue an opportunity to open a boutique in my wife's home town in Ecuador. The first year was great, the second not so much, and now is it has just turned in to a way to pay for our travel expenses when we go to visit. During the decline of my boutique, I started a vape business right as CBD products were being introduced into the market and got a lot of pushback from tough regulations. I decided to not pursue that business any longer either. With having invested tens of thousands of dollars in my businesses and living beyond our means being newly married and have little to no personal finance education, I decided to pick up a book at the end of 2018, Secrets of the Millionaire mind, which transformed my life.

Fast forward a year, Ive listened/studied about 65 books on personal finance, tax/corporate law, communicating effectively, negotiation, etc., many 3-5 times. Robert Kiyosaki and his advisors have the biggest presence in my library 15+ titles. Ive also gotten 50% of my debt paid down so far by drastically reducing my monthly expenses and increasing my income nearly 3x what I had been earning for the previous years. We plan to have everything paid off in the next 6 months and are shooting to have a net worth very close to 0, Im happy to say.

Just recently, I've started studying real estate and attending REIA meetings. Many of the books I've listened to have been written by bigger pockets authors, as well as Robert Kiyosaki and Advisor's books on real estate investing. Trump, even after being influenced to dislike him threw the news and other outlets, has become someone I now admire for his success in real estate. The thought of developing real estate after spending the next 10+ years learning and practicing within the field seems almost too good to be true, but it is a desire and goal I hope to reach in the future.

Having my own business for the last two years, racking up my credit cards, and deducting as much as legally possible to lower my tax obligation, my finances on paper are not great in terms of being able to get a loan. Possible sources of financing help such as my mother who lives in charlotte and has a good 6 figure job, and my father in law who lives in Ecuador who has expressed interest in investing money with me in the united states are likely to be on the table when I decide to get my first deal in order.

We currently pay $1,700 a month for rent for a 3br,2ba house, and our lease is up in about 6 months. After everything I have learned in the last year, I am ready to quit throwing away money each month on rent. House hacking is very much a strategy I am interested in pursuing as my first investment. The though of purchasing a fourplex, triplex, or possibly a duplex by the end of my lease, as my first investment property, is very appealing.

I've also contemplated doing a rehab on an inexpensive house, and holding it for at least a year to reduce taxes if and when sold, by using the BRRRR strategy, but using a 1031 exchange is something I've researched quite a bit as well.

At this point it seems to me I have a few options to get started in the near future and be able to get some skin in the game while I continue learning.

1. I can start preparing to find a MFP to be able to move into and put all the pieces together by June 2020

2. I can get a started on a rehab project within the first few months of 2020.

I do have a few thoughts in regards to both. For scenario 1, I'm not sure If I want to wait another 6 months before I actually buy my first property, I feel like I would prefer to get started sooner than that. For scenario 2, I'm not sure If I put my time, available capital and resources into a rehab, that I will be ready to acquire the bigger property to house hack with that may completely cover our monthly housing expense and possibly cash flow positively.

I am also curious about how to utilize the available funds of my father in law, and also how to get them transferred over here as a loan to me for the use of investing, investment in a property possibly threw a partnership or lcc, or a personal gift, considering he is not a US citizen.

I know I have laid out quite a bit of information and If you have read this far I can not be anything but grateful for you time. If you have any thoughts, suggestions, or opinions on possible next courses of action, your comments would be much appreciated.

Thank you,

Tony

[Jonathan Klemm]

@Tony Pellettieri I completely agree with @Frederick Wenger you can not stop learning - Read, listen, watch, find a mentor and keep networking!

Regarding your question, I would definitely go with option 1.  Multifamily house hacking is definitely the best way to go.  So many benefits!  Keep saving and the time will go by fast as you continue to learn and prepare yourself.  You are definitely on the right path.  What a great story!