OUR PLAN: Good Enough or are we DOOMED!?!

19 Replies

Hello, I'm Anthony.

I am new to Bigger Pockets and the amazing world of real estate investing.

Over the last month, I have been ingesting everything real estate through a fire hose.  No joke.  I stopped watching TV and even listening to music, replaced with BP podcasts and other audiobooks.  My Xbox hasn't even been on in months.  <--- Never happened before!  Needless to say, I have become ADDICTED to this intriguing world. 

I am writing this, my first post on the BP forums, to introduce myself and my vision for the future and see what y'all think.

I currently live in Parker, Colorado (South East Denver) with my fantastic wife and youngest daughter.  We are planning to move to Tampa, Florida at the end of our lease in June.  Where I want to become a real estate agent and investor. 

I am working 70 to 80 hours a week at my day job and am 12 hours away from my family working on the road.  This is a big problem and needs to be solved.  So I have dedicated every free moment of my life to escaping the rat race, and building the life my family deserves.  

I plan to get my real estate license (I love working in sales) and use that to earn a living while quickly establishing a portfolio of cash flowing properties. To start we plan on buying a tri-plex or 4-plex and house hack it for the first couple of years we are in Tampa. We believe this is a good idea because it allows us to minimize our living expenses, and learn to be landlords while establishing ourselves in a new area. We want to take advantage of an FHA loan to minimize our out of pocket costs since we will be using most or all of our savings to make the down payment. After this, we are going to implement the BRRR strategy to establish our portfolio.

Now, this sounds like a great idea to us and others we've talked to but we don't know anyone in the real estate space. So I come to this amazing group to see what y'all think.  

Is this a good idea, and if so, what are some pointers you can give us to execute our plan successfully?

If not, what do you think we could change to make it a successful plan?

Thank you in advance for your time (your most precious resource) and I look forward to becoming a contributing member of the BP community.

House hacking is a good way to break into real estate. Just keep in mind if you put less than 20% down, you'll be paying PMI for awhile so factor that into your expenses to calculate cash flow. All the best to you.

Originally posted by @Anthony Cannizzaro :

Hello, I'm Anthony.

I am new to Bigger Pockets and the amazing world of real estate investing.

Over the last month, I have been ingesting everything real estate through a fire hose.  No joke.  I stopped watching TV and even listening to music, replaced with BP podcasts and other audiobooks.  My Xbox hasn't even been on in months.  <--- Never happened before!  Needless to say, I have become ADDICTED to this intriguing world. 

I am writing this, my first post on the BP forums, to introduce myself and my vision for the future and see what y'all think.

I currently live in Parker, Colorado (South East Denver) with my fantastic wife and youngest daughter.  We are planning to move to Tampa, Florida at the end of our lease in June.  Where I want to become a real estate agent and investor. 

I am working 70 to 80 hours a week at my day job and am 12 hours away from my family working on the road.  This is a big problem and needs to be solved.  So I have dedicated every free moment of my life to escaping the rat race, and building the life my family deserves.  

I plan to get my real estate license (I love working in sales) and use that to earn a living while quickly establishing a portfolio of cash flowing properties. To start we plan on buying a tri-plex or 4-plex and house hack it for the first couple of years we are in Tampa. We believe this is a good idea because it allows us to minimize our living expenses, and learn to be landlords while establishing ourselves in a new area. We want to take advantage of an FHA loan to minimize our out of pocket costs since we will be using most or all of our savings to make the down payment. After this, we are going to implement the BRRR strategy to establish our portfolio.

Now, this sounds like a great idea to us and others we've talked to but we don't know anyone in the real estate space. So I come to this amazing group to see what y'all think.  

Is this a good idea, and if so, what are some pointers you can give us to execute our plan successfully?

If not, what do you think we could change to make it a successful plan?

Thank you in advance for your time (your most precious resource) and I look forward to becoming a contributing member of the BP community.

 Hey Anthony, welcome! I have been house hacking in Seminole Heights. I currently live in a triplex (broken down as 2/1 main house which I live in, 1/1 attached MIL, and separate 2/1 house in the back) and the rents from both tenants pay off the mortgage on the property. So far its been a fantastic experience. We've done a lot of work to our house since purchasing (FHA 3.5% down) and will be refinancing soon to remove PMIand will be profiting $200-300 a month on top of our Mortgage, Homeowners insurance and taxes being paid off.I'm working with a buyer currently to buy either a duplex or triplex in the Ybor area and there are some great deals there for house hacking but Seminole Heights is pretty good as well! What area are you looking to buy in? Do you have two years tax returns and 2 years w2 to show a lender?

This is a fantastic plan! Love your energy and enthusiasm and wow ... no xbox ?!!!! 

All kidding aside yessss on the house hacking. And ditto on being prepared for pmi unless you do 20% 

On the agent side ... it can be tricky to get the income flowing right away. So make sure either you have some savings or one of you is working. I tried three brokers until I find the right match for me with exp. So be sure and talk to a few brokerages too. It is not a one size fits all. 

I’m on the other side of Florida and love it. Doing a lot of residential and working with investors as well. Happy to talk more anytime and best of luck!!!! 

Onwards! 

Share

I think it is a great idea. I wish I could go back and house hack my way to riches. The one thing I would suggest is that you house hack a new tri or 4plex every year if possible. Currently you only have to live in a house for 1 year before you move and new house to hack with the low down payment. Like Ralph said, make sure you include you PMI in your modeling. Good luck on your way to riches.

Originally posted by @Ralph Stowe :

House hacking is a good way to break into real estate. Just keep in mind if you put less than 20% down, you'll be paying PMI for awhile so factor that into your expenses to calculate cash flow. All the best to you.

Thank you for the great tip!  Didnt even think of PMI before.  

 

Originally posted by @Anthony Kelly :

I am still learning the neighborhoods in Tampa and St Petersburg so Im not to sure yet.  We are wanting to keep the purchase price under $300,000 as we currently have the 3.5% needed as down payment.  Now we are building up our reserves to cover bills for 6 months while I establish myself as an agent.  Its good to know someone else has been successful in house hacking.  Your success emboldens me.  Thanks!

Also we do have the 2 years W2's and tax returns.  Great reminder, thanks.

 

Originally posted by @Share Ross :

This is a fantastic plan! Love your energy and enthusiasm and wow ... no xbox ?!!!! 

All kidding aside yessss on the house hacking. And ditto on being prepared for pmi unless you do 20% 

On the agent side ... it can be tricky to get the income flowing right away. So make sure either you have some savings or one of you is working. I tried three brokers until I find the right match for me with exp. So be sure and talk to a few brokerages too. It is not a one size fits all. 

I’m on the other side of Florida and love it. Doing a lot of residential and working with investors as well. Happy to talk more anytime and best of luck!!!! 

Onwards! 

Share

 Lol yes, NO XBOX!!   

Thanks for the vote of confidence!  

We plan on having 6 months reserves for bills and expenses before we move in June.  That should give me the time to network and establish myself in the community.  I have a deep desire to help others, a knack for sales and an unshakable "WHY" 


Failure isn't an option.

Originally posted by @Anthony Kelly :

Your welcome! If you’re looking for someone to help find some properties for you and eventually represent you, I’d be glad to help. I’m a huge house hacking advocate 👍🏻

 

 Thank you, Anthony!!!  That would be awesome of you.  My wife and I have been all over Zillow, Realtor.com, and Redfin.  It would be good to get the opinion of someone in the area!  You rock!👨🏽‍🎤

your not doomed  this will work just fine.. its a LOOOONG game this real estate game. 

House hacking is a great way to get started and get your foot in the door.

Not everyone is cut out to be a realtor, but I say go for it.  You won't know unless you try.  Who knows maybe you end up being the property manager and your wife the realtor.

@Anthony Cannizzaro so being an agent is a really tough gig. Most fail (95%+) but it sounds like you have a background in sales which should be to your advantage. The whole buying thing might not work out too well since you would be changing careers and be an independent contractor vs w2 employee. Lenders don't like the changing fields or the non w2 folks. Get with a lender and get your plan ironed out before you commit. Other than that, no time like the present.

@Anthony Cannizzaro Tampa is a great market and housing hacking is a great method to get started in real estate (how I started). One tip I always recommend to investors especially when it comes to small Multifamily is to check with local zoning department to make sure it’s a legal duplex, triplex, quad etc etc. a quick phone call or visit can save you a lot of headache. sometimes if owners don’t stay current with things like business tax properties can loose their grandfathered status and a quad might now only be able be used as a triplex due to new density or parking requirements. 

Originally posted by @Bill S. :

@Anthony Cannizzaro so being an agent is a really tough gig. Most fail (95%+) but it sounds like you have a background in sales which should be to your advantage. The whole buying thing might not work out too well since you would be changing careers and be an independent contractor vs w2 employee. Lenders don't like the changing fields or the non w2 folks. Get with a lender and get your plan ironed out before you commit. Other than that, no time like the present.


 Really great point Bill!  I had just started planning for that today after another member mentioned something similar.  

I didn't know 95% of realtors fail.  Knowing that gives me even more desire to succeed! To say I accomplished a feat 95% of people fail at.  I put in the work most wouldn't.  That's a level of satisfaction worth chasing.  Thank you for your enlightening words.

Originally posted by @Sean Drees :

@Anthony Cannizzaro Tampa is a great market and housing hacking is a great method to get started in real estate (how I started). One tip I always recommend to investors especially when it comes to small Multifamily is to check with local zoning department to make sure it’s a legal duplex, triplex, quad etc etc. a quick phone call or visit can save you a lot of headache. sometimes if owners don’t stay current with things like business tax properties can loose their grandfathered status and a quad might now only be able be used as a triplex due to new density or parking requirements. 

 No doubt zoning is a key factor and now on my pre-quilify/due diligence check list.  Thanks for the great advise!

@Anthony Cannizzaro

Glad to hear you are taking massive action to change your situation.

Tyler Sheff at Cashflow Guys is in Tampa. He is extremely well-connected in the real estate world and has a very good podcast. Contacting him might really pay off.

Originally posted by @Kevin Grove :

@Anthony Cannizzaro

Glad to hear you are taking massive action to change your situation.

Tyler Sheff at Cashflow Guys is in Tampa. He is extremely well-connected in the real estate world and has a very good podcast. Contacting him might really pay off.

 Thanks for the great tip.

@Anthony Cannizzaro Hey Anthony, I think this is an awesome plan and definitely worth trying, but you are going to need creativity and a lot of drive. This is almost exactly what I have done here Denver/Springs area. I left a stable career as a CPA to get my Realtor's license (not the normal path) so that I could learn the business and start investing. After working very hard to get transactional business of buying/selling for others during my first year as a Realtor, I got a lot of experience and felt comfortable enough to branch out and add investing/flipping to my income as a Realtor.


As Bill mentioned, lenders didn't take kindly to be self-employed in a "new" field even though the income was there. I had to partner with someone with more stable work history and this partner has been the catalyst to my successes so far. I have been having a lot of fun and now definitely enjoy what I do and I know you can make it work with enough drive and creativity. Best of luck!

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