Advice for First House Hack/Out of State Investing

[Phil K.]

Hi All, 

I'm just getting started and looking to house hack my first rental in Fredericksburg VA, sometime in mid-2021. I've been looking at Craiglist to get an idea of what rooms rent for ($500-$700 seems average). I've read that Zillow rent estimates aren't that accurate, but even so it seems like the CoC returns for that area aren't that great. My near-term goal is to 1) Watch the rental market with COVID, 2) Try to find an off market deal if possible. With that being said, I'd appreciate advice on the following:

1. 1. Any recommendations for finding a good house hack in the Fredericksburg VA area?
2. 2. Any thoughts on living in a trailer on the property vs. living in the house? (I initially thought a trailer might be cheaper, but given all the costs involved, I'm not sure the cost difference justifies the inconvenience, in addition to zoning/HOA considerations)
3. 3. Any advice for buying out of state rentals while house hacking? Living in Northern Virginia, MFHs aren't exactly plentiful, so I'd be looking at mostly SFH/MFH in markets with better cashflow.

I have a stable job which I plan to stay in while I build my portfolio. My basic plan for FI is to combine the BRRR strategy with the stack and buy 2 rental properties per year over the next 5 years, each cashflowing $500/mo. I recognize this might be high (obviously a lot of variables affect cashflow), but my mindset is this: If I hustle hard enough, all I have to do is find 2 properties per year that hit that criteria. If I put in the work, I believe it is achievable. I plan to snowball my cashflow into the next property until I have 10 doors which net $60K. Because I live in a high-cost area, my strategy is to invest out of state in areas that have better cashflow.

What else should I be doing? I'm committed to taking action and getting in the game. Any thoughts or insights are appreciated!

[Joaquin Camarasa]

It is awesome that you have a long term play, however at his point I would focus all my energy in that first deal. 

Answering to your questions:

1) You have time if planning to buy in 2021, research the Fredericksburg market 2-3 times a week so when the time comes you know when a good deal appears and you are ready to make it happen. You will know the market better than anyone if you do this. 

2) It is your first investment, keep it simple. The whole trailer idea looks cool and all but there are too many variables to consider. 

3) Answered on my first sentence.

Good luck with everything