Newbie! Intro & looking for advice :)

2 Replies

Whats up everyone! I am brand new to BiggerPockets and wanted to introduce myself. I live in WA state and plan to get started investing which lead me to BP. I have been educating myself on all things investing for the last few months especially on how to get started on my first deal. I'm a real estate broker so am very familiar with the buying/selling process and have access to the local MLS and familiar with the area here. I have always planned to use my real estate license as the conduit to get into investing and my wife and I are thinking we would like to start going down that path. Like most, we are a bit tentative to take the plunge! Mostly because we have a 2 yr old and another baby on the way (wife due in Feb 2020). Up until recent times, we were going to wait until both kids were about 5 before we started investing. Now we are thinking, why wait? My wife has a good job working in Health Care and the goal for 2020 is to acquire our first multi fam unit. There are deals here locally right now where I can have positive cash flow each month around 8-10% Cash on Cash ROI (factoring in CapX, Repairs, vacancy fee, PM, etc)

I plan to go the Brrr route and looking for a little advice on what others have done to come up with the down payment on their first deal. I would like to do 20% down to avoid PMI. I have a meeting with my Financial advisor next week to discuss all of this. We have chatted previously about me using invested money to get things rolling into real estate investing and I know he will advise not to. He is very conservative and obviously has a vested interest in me not taking away money he is managing for me. I have about 30K in an individual brokerage account w/him that I can access with no penalties. I do have more tied up w/him that's in a Roth & 401K. For others who got started, what would you say about tapping into 401K/Roth to come up with the downpayment? Thanks for much for any input!

@Joseph Bernal Congrats on joining the BP community. You have plenty of options, but I can only recommend based on what I've personally done. My first real estate purchase 15 years ago in Lake Stevens was a duplex with a 2 bed, 1 bath on one side that my wife and I lived in, and the other side was a 1 bed, 1 bath that we rented out to help cover a portion of the mortgage. I love this strategy for a first time home buyer as it sets the tone for all future investments. Living in one side and renting out the other keeps you very involved in the rental world, it speeds up the learning curve of working with tenants, managing leases, maintenance, reviewing contractor bids, and the whole process. It also involves your spouse which I'm a HUGE proponent of when it comes to investing. Far too many investors leave their other half in the dark which leads to problems in investing and marriage. Good luck!

@Gabriel Graumann thanks for the reply!  I should touch on a few items.   I love the idea of buying a multi and living in one unit and renting out the others.  I did do this (sort of) on the first home I bought in my early 20's.  I bought a home in Vegas in 2009 that I lived in and rented out the other rooms. Mortgage was paid in full so it costs me nothing to live there.  This was sheer coincidence as I did not make any intentional decisions to create that, I just happened to finish college and moved to Vegas for my job at the time and had some buddies who needed a place to live. The market went nuts and I sold that home, made a good chuck of change and moved to WA state.  I did the same thing in WA state by buying a home that needed repair/updating lived in that home for a few years and we ended up selling that and making another good chunk of change.  My wife and I made the decision together at that time to take our cash into buying our forever home while we started a family.  So, that is basically where we are now.  We have a nice spread and don't plan on moving ever again (or foreseeable future).  So moving into a multi fam is not the plan at this point, just want to start buying Multi Units locally if the numbers make sense.  Right now its finding the deal and deciding what the best route is for the Down Payment.   

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