Closed my first house hacking deal in Los Angeles (LA) - Part 2

[Vinay C.]

Hello BiggerPockets family,

It's been couple of years since I wrote my first post (https://www.biggerpockets.com/forums/223/topics/575632-closed-my-first-house-hacking-deal-in-los-angeles-la-part-1?page=1#p4237043). I'll keep this short. 

6 months into my FHA loan, I refinanced it. The appraisal came out to be $790K. I got a first loan 80% 7/1 Conventional loan for 3.875% $632,000 and the second was a HELOC for $58,500.

So my current payment for P&I is $2987/month down from $3900 (P&I and mortgage insurance). I got rid of the monthly mortgage insurance of $586.71. 

The back house is rented for $2500. 

So all up my rent turned out to be $487 + $750 = $1237/month vs $2500/month that I was paying while the tenants paying my rent building my equity. 

I am also using the savings to pay my mortgage a little faster and have my HELOC as a buffer for expenses.

It has also showed me how fast you can build equity. All this has peaked my interest in Real estate and I want to help millennials like me on this path to financial step up. This led me to get my Real estate license in that pursuit. 

If you have questions on starting your real estate journey in LA, feel free to reach out to me. Here to help. 

Cheers

V

[Tuan Huynh]

@Vinay C.

Hello, I really enjoyed reading your story.  I am a little bit analytical myself and the number breakdown you provided was superb.  I am new to real estate investing myself.  I have purchased 2 homes in the Northridge area but they are both my primary residence.   I just started reading more books from Brandon Turner and David Greene and seriously considering investing out of state.  You made a really good move by house hacking your first primary residence.

I just got done with converting my garage into a ADU for rental. I will type this up, hopefully my story will be as compelling as yours, in the BP forum soon. For Californian, if you have a garage then you should definitely consider converting it into a rental ADU. The local government agency has made it so easy to get permits approved due to the shortage of housing.

I am hoping we could network and attend seminar and grow our business.  See you soon...