All Forum Posts by: Ashley Cote

@Chris Mason

I didn't know much about CDs, I'm glad you pointed out the return difference based on the term. Seems with Ally Bank at least, it's definitely the case that even with a penalty you would be earning more interest with long term CDs opposed to short term.

@John Thedford 

I like the #4 you slipped in there! haha

For the "You make your money at the time of purchase" there's also a second half to that saying "you realize it at the time of sell".

It basically just draws to the fact that if you buy smart, you have already made your money. If you buy a bad deal, you've most likely lost it or broke even if you're lucky. At least that's my understanding of the saying.

@Account Closed

I appreciate your willingness to share your knowledge! It's much appreciated.

I am looking to start house hacking, probably within the next year. Multifamily property (duplex/triplex) is probably out of the question since it is a rare property type in the area I will be in. I plan to purchase a SFH and rent out the spare bedrooms while occupying a bedroom myself.

I have a few questions about this approach. 

1) Is analyzing a deal for house hacking a different process than analyzing a deal for any other purpose (wholesaling, flipping, etc)? I plan to keep the property and just continue repeating the house hack as many times as my financing situation allows. I will most likely switch to renting out the house as a whole once I move from one property to another depending on the type of demand.

2) When house hacking in a SFH, what type of rules do you suggest including in the contract? Also, do the rules/requirements that you enforce have to apply to yourself? Example, I have a dog. If I have a 3 bedroom house, I would not want to live with 3 dogs in my house. Could I have a no-pet policy in this situation? Or could I have a first come, first serve pet policy (I could live with 2 dogs, or dog and cat)? (This sounds like it would get a little complicated or look unfair.)

@Chibuzor Alumba

The blog post on Cash Flow and Cash on Cash Returns:

https://www.biggerpockets.com/renewsblog/2014/06/14/how-to-calculate-cash-flow-rental/

It all depends on how you are planning to finance and what you are planning to buy. If you are planning to owner-occupy, you are looking at only a 3.5% down payment usually through an FHA loan. If you try to go a more conventional lending route, you are looking at about 20% down.

Another thing to consider if you are going the route of an FHA, there is also a 203K loan that you could apply for that would help fund the renovations within reason should you need it.

There is also a blog post written on this site that walks you through deal analysis helping you identify what the cash flow and cash on cash return will be. It was really helpful (I'm new as well).

@Brian Adams 

A complete novice question,

When emailing/contacting new connections, what type of content should we aim for? Just a mere thank you for the contact information and pleasure of meeting, or should we include more about ourselves and goals?

I don't have any great advice for you, as I'm a newbie myself. Going to my first REI group meeting tomorrow night.

I would suggest making some business cards so that when you meet people that may be potential partners or just a contact that you'd like to network with, you can exchange business cards. It's easier than having to scribble down your info in a meetup like that.

I'd also aim to inquire about people's success. Most people love to brag about their stories, so let them and learn from what they've done. They may even give you some pitfalls they went through so you can try to avoid them yourself.

I'm in the category of "never get started" stupid tax currently. I joined a REI group recently so hoping to get some good information from there.

I think the biggest thing I don't know is what to look for in property yet. (What structural pitfalls to avoid, what signs that tell the location will not be ideal, etc.) I'm at the stage of trying to learn the market and what houses are going for. My goal is to house hack, ideally duplex/triplex but it seems those are rare in this area so I may settle for SFH.