Hello BP! New listener and big fan of the podcast. I have listened to about an episode a day for the past 2 months and read How To Invest In Real Estate by Brandon. Currently I do not have much savings (working on it) and not a great credit score (also working on it). My plan is to househack my first property. Is there anything I can do now or do I just need to keep my head down and save/build credit?
I know Brandon would say to analyze, analyze, analyze, and I will but I always get stuck on estimating the potential rehab cost. Anything helps.
Investor · Lehigh Valley, PA · Member since 2019 · 129 posts · 127 votes
5y
@Cole Pasquale welcome to the forums Cole! Congrats on taking that next step in planning your first investment. Adn you're on the right track by building up your cash and your credit.
Yes you can BRRR a house hack. That's what my wife and I are currently doing. One unit was a complete gut. Totally destroyed by a tenant that was there for 17 years with the previous owner. Fortunately that tenant had vacated prior to our purchase.
Definitely keep analyzing deals as it is kinda like practicing anything else. You can get good at it and recognize better deals quickly especially when it becomes time for you to pull the trigger.
Other than saving and building your own credit, you could partner with an investor but in my opinion it's well worth the wait and work to do the first one yourself. Along with all the lessons you'll learn, it's great experience.
Investor · Lehigh Valley, PA · Member since 2019 · 129 posts · 127 votes
5y
@Cole Pasquale welcome to the forums Cole! Congrats on taking that next step in planning your first investment. Adn you're on the right track by building up your cash and your credit.
Yes you can BRRR a house hack. That's what my wife and I are currently doing. One unit was a complete gut. Totally destroyed by a tenant that was there for 17 years with the previous owner. Fortunately that tenant had vacated prior to our purchase.
Definitely keep analyzing deals as it is kinda like practicing anything else. You can get good at it and recognize better deals quickly especially when it becomes time for you to pull the trigger.
Other than saving and building your own credit, you could partner with an investor but in my opinion it's well worth the wait and work to do the first one yourself. Along with all the lessons you'll learn, it's great experience.
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
5y
@Cole Pasquale welcome to the forums and to the BP community! If I were in your shoes, I would continue to save and work on your credit. I would also focus on finding a realtor and lender who you can work with in your local market. You can find a lot of them here on the forums or you can search here on BP.
You asked a question that I get a lot about using the BRRR strategy and a house hack strategy at the same time. While not impossible, it is highly unlikely for most newer investors. The trick is using the FHA loan to buy something that needs some work. The main obstacle is that FHA is designed to not allow you to buy properties in rough shape!
I would focus lastly on getting to understand your "why". Why are you buying properties? Do you want to quit a job? Build for retirement? Legacy wealth? Side hustle? Start with the end in mind and the path will become clearer!