I am a young entrepreneur Looking for guidance
Member since 2025 · 8 posts · 10 votes
I am a young entrepreneur Looking for guidance
Most Popular Reply
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
1yI agree with Eric. The number of units is inconsequential. Having a real estate empire is not about who can get there the fastest, but who can grow in a manner where they are acquiring properties that fit their overall goal in a broad in a diverse portfolio, the people you see who are 30 years older than you were not the ones who did it overnight or rushed it. They built it over a long period of time
7e investments53 Reviews
21 Replies
- Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes1y
The first mistake you should avoid is to not, "buy as many units as you can buy." The number of units is much less important than the quality of the units. Owning a big portfolio of money losing properties isn't the goal. Collect money, not properties.
- Member since 2025 · 8 posts · 10 votes1y
@Eric Gerakos yes sir thank you my goal is to make sure that all of those units that I'm getting financially make sense I think I just need a bit more guidance on what makes sense and what doesn't!
- 1yArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 923 votes
Hey Luis — love the ambition! House hacking is a great first move. A few quick tips: run your numbers with vacancy and repairs in mind, screen tenants carefully (especially if you’re living on-site), and be sure you understand local zoning. I invest in Columbus, Ohio — strong cash flow and landlord-friendly laws — if you ever look out of state. Are you thinking of a duplex or renting out rooms?
- Member since 2025 · 8 posts · 10 votes1y
@Arman Ahmed for my first I was thinking of a triplex just to get started out unfortunately for my first home I need to use an FHA loan because I am not fully able to have a bigger down payment!
- 1yAaron ZimmermanBusiness MemberAccountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
Luis - congrats on your success with your business.
A couple of thoughts here on the house hacking route:
1. Make sure to scope the sewer line - you could be saving yourself a major headache down the line.
2. network with other investors as much as possible. Try to expand your network as much as possible before purchasing.
3. Connect with as many lenders as you can as you may be considered self employed.
another thought:
could you purchase a building for your barber shop and rent out the other units? There's certain tax advantages with self-rentals, but this might be a good way to lower your rent expense and build equity.
Brick House CPAs53 Reviews- Member since 2025 · 8 posts · 10 votes1y
@Aaron Zimmerman hello Aaron thank you for the advice may I ask what issues specifically are you talking about with sewage? And I've actually thought of that when it comes to owning a plaza but I would need more capital for that.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes1y
I agree with Eric. The number of units is inconsequential. Having a real estate empire is not about who can get there the fastest, but who can grow in a manner where they are acquiring properties that fit their overall goal in a broad in a diverse portfolio, the people you see who are 30 years older than you were not the ones who did it overnight or rushed it. They built it over a long period of time
7e investments53 Reviews - 1ySam McCormackBusiness MemberReal Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
Quote from @Luis Negron:
Hi my Name is Luis negron and my goal has been to own as many units as I can buy to be financially free. I own my own barber shop here in Moreno Valley and I'm producing good cash flow within my business I think I'm ready to house hack and buy my first property but what are some mistakes I should avoid or tips you are willing to offer?
Buy for location not "cash flow". Where you buy will reflect in the tenants you get. Not always, but more often than not
Sam McCormack Realtor- Member since 2025 · 8 posts · 10 votes1y
@Sam McCormack yess! This is also my biggest worry because of squattters or people not paying on time. I want to be able to not stress out over not being paid that's for sure!
- 1yArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 923 votes
That's a great plan! Starting with a triplex using an FHA loan is one of the smartest ways to house hack and build wealth early on. FHA lets you put as little as 3.5% down, and by living in one unit while renting out the others, you can offset your mortgage and build equity at the same time.
Just make sure the property qualifies under FHA guidelines and the numbers work with projected rents. Let me know if you want help running the numbers or finding a solid deal — happy to support however I can!
- Member since 2025 · 8 posts · 10 votes1y
@Arman Ahmed this service that you're offering, how much would it be?
- 1yArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 923 votes
Great question! I don’t charge anything for sharing tools or helping run a quick deal analysis — I’ve got an investor package I usually share with helpful calculators, checklists, and market tips I’ve used myself. Just let me know if you’d like access and I’ll get it over to you!
- Member since 2025 · 8 posts · 10 votes1y
Quote from @Arman Ahmed:
Great question! I don’t charge anything for sharing tools or helping run a quick deal analysis — I’ve got an investor package I usually share with helpful calculators, checklists, and market tips I’ve used myself. Just let me know if you’d like access and I’ll get it over to you!
I will be contacting with you very soon, I'm very interested!
- 1yKerlous TadresBusiness MemberRealtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
Quote from @Luis Negron:
Hi my Name is Luis negron and my goal has been to own as many units as I can buy to be financially free. I own my own barber shop here in Moreno Valley and I'm producing good cash flow within my business I think I'm ready to house hack and buy my first property but what are some mistakes I should avoid or tips you are willing to offer?
Learn the basics, build a team(great realtor, property manager, contractor, and attorney), and go from there, Luis! Best of luck in achieving financial freedom
Kerlous Tadres | Reafco Real Estate540 Reviews - 1yMichael SmytheBusiness MemberReal Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location/neighborhoods to invest in.
Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class affect what type of contractors, handymen and property management companies will work on a property.
If you buy & renovate a property in Class D area to Class A standards, what Tenant Class will rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
- Property Tenant Pool: closely linked to location, but not always.
- Property Location: closely linked to tenant pool, but not always.
- Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.
Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.
Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
Metro Detroit has 132 cities, the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying.
Logical Property Management4.9453 Reviews- Member since 2025 · 8 posts · 10 votes1y
Quote from @Michael Smythe:
Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location/neighborhoods to invest in.
Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class affect what type of contractors, handymen and property management companies will work on a property.
If you buy & renovate a property in Class D area to Class A standards, what Tenant Class will rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
- Property Tenant Pool: closely linked to location, but not always.
- Property Location: closely linked to tenant pool, but not always.
- Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.
Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.
Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
Metro Detroit has 132 cities, the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying.
Thank you so much for this useful information! I will keep all of this all in mind when looking into the property.
- 1yAdam BartomeoBusiness MemberReal Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
You don't have a goal, you have a DREAM. Its great to have a dream BUT a dream is just a dream unless you have very specific goals and actionable items to make that dream a REALITY. You need to understand the dollar amount you need to be free, how many properties you will need, how you will purchase them, how you will find them, and come up with a game plan. That is the biggest tip you will get.
Bartomeo Property Management4.7150 Reviews - Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes1y
What a great start!
What makes your situation interesting is you have the ability to house hack with college students. I have clients who do it in the area.
There is so much advice it's hard to type it out, but here are a few that stand out:
1. It's all about that bedroom count. Assuming you can afford it, go for the 4+ bedrooms. There are plenty out in that area.
2. Have house rules. What are the quiet hours? Laundry uses? Late fees? Keep in mind with house hacking you are creating a small community. Having expectations upfront is key.
3. Houses are only getting older and we are seeing a tipping point. Every house needs something so don't be surprised if it doesn't inspect well. Good news is most things can be fixed.
Good luck!
- Dr · VA · Member since 2025 · 154 posts · 34 votes1y
create an LLC, buy it under LLC. participate actively to benefit for nonpassive income options.
- 1yRyan SpathBusiness MemberReal Estate Agent · Boise, ID · Member since 2017 · 562 posts · 377 votes
Hi Luis,
Thanks for sharing your thoughts — and congratulations on the success of your barber shop! Producing steady cash flow from your business is a huge step toward financial freedom, and the fact that you're thinking about house hacking shows you're already thinking like an investor.
Here are some key tips and common mistakes to avoid as you look to buy your first property and house hack:
Top Tips for First-Time House Hackers:
- Get Pre-Approved First
Before you start shopping, get pre-approved for a loan. This will tell you exactly how much you can borrow, and it makes you more competitive when submitting offers. - Buy a Property That Makes Sense as a Rental Long-Term
Even if you plan to live there now, ask yourself: “Would this property cash flow as a pure rental later?” This ensures long-term viability. - Maximize Units If You Can
If you qualify, consider a 2–4 unit property. You can live in one unit and rent the others — and still use residential financing (with low down payment options like FHA, VA, or even 5% down conventional). - Know Your Numbers
Calculate your estimated rent income, mortgage, property taxes, insurance, and maintenance costs. Make sure the deal at least breaks even — or better yet, cash flows. - Use Property Reserves Wisely
Keep some cash set aside for unexpected repairs or vacancies. You don’t want to be house poor or caught off guard. - Work With an Investor-Friendly Agent
Not all agents understand house hacking or cash flow. Work with someone who knows the numbers and the local rental market.
Common Mistakes to Avoid:
- Overestimating Rents – Always confirm realistic rents by checking nearby listings or using a property manager’s opinion.
- Underestimating Repairs – Cosmetic fixes are common, but don’t ignore big-ticket items like roofs, HVAC, or plumbing.
- Skipping the Inspection – Always get a home inspection. Even on multi-units.
- Not Factoring in Vacancy – Leave room in your budget for the occasional empty unit or missed rent.
Let me know if you'd like help analyzing a property. I am personally located in Boise, Idaho so I do not have insight on your market but the fundamentals of crunching numbers are the same. You’re in a great position to build wealth through real estate — and this first step can set the tone for many more doors to come. Also, to mimic what was said previously it isn’t about door count as much as reaching your personal goal of financial freedom. If you create a clear path and have a 10 year timeline you will be surprised what purchasing one property a year for ten years can do!
Best,
Ryan Spath - Get Pre-Approved First
- Real Estate Agent · Washington, DC · Member since 2025 · 157 posts · 77 votes1y
Quote from @Luis Negron:
Hi my Name is Luis negron and my goal has been to own as many units as I can buy to be financially free. I own my own barber shop here in Moreno Valley and I'm producing good cash flow within my business I think I'm ready to house hack and buy my first property but what are some mistakes I should avoid or tips you are willing to offer?
Hey Luis welcome to the BP community! I'd start with learning about your local and state laws regarding tenants and their rights. Start with 1 door and get a feel for liking of being a RE landlord. After that don't focus on many doors focus on the ROI and build that way. Also just like @Michael Smythe pointed out the class system is key as well. Good luck!
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