All Forum Posts by: Brett Baginski

Welcome Romero!  It really depends on what debts you are talking about.  If you are paying 20%+ interest charges in credit card debt every month, then I would say pay this down.  Something like a car payment or school loans are much lower interest rates.  You will probably save most of your money by creating a monthly budget for yourself and really analyzing how you are spending your money.  Going out to dinner three times a week with the family can really eat up a lot of cash, so something as simple as cooking more meals at home can make a huge difference.

If you really want to get technical, look over your expenses the past 3 months and see where you are spending the most and where you can cut back, then stick to it.  If you decide to pay off the debt you have, you have to be sure to not to keep those same spending habits that got you there in the first place.

Hope this helps.

The best place to start is getting an education on real estate.  I think the best thing to do, which has helped me the most, is to listen to the BP podcast and start reading some books.  Check out the link below, which are all the books that BP recommends.  Staying active on the forums and attending your local real estate meetups will help you grow your network and find a realtor/lender/wholesaler to help you along the way.  Best of luck!   

https://www.biggerpockets.com/blog/2013/04/14/best-real-estate-books/

Hello everyone!  Just wanted to introduce myself to the forums.

My name is Brett, I'm 30, and work as a Financial Analyst in NJ.  Received my undergraduate degree in Accounting from Monmouth University and am now going back for my MBA.  If you are familiar with the area, I grew up in Woodbridge, but now live in Tinton Falls.  Currently I own a Townhouse, but am looking for a Multifamily property to house hack where I would rent out my current residence.  This seems like the best way to get started in real estate investing in my scenario.  

I have a HELOC ready to go and am currently working with a realtor. We plan on looking at our first property next week, which I posted about in another topic on the forums under Deal Analysis, which I'll link below.

I've been to one real estate meetup so far, but plan to keep attending and branch out to the other local groups as well.  My goals right now are to get started with my first deal, then replace my living expenses, and finally match my W2 income within the next 5 years.

I have been soaking up information like a sponge the past five months.  Listened to majority of the BP and Rod Khleif podcasts, read the books Multi-Family Millions, Cash Flow Forever, and Rich Dad Poor Dad, and I have a bunch more on my list.  Recently have been trying to be more active on the forums to add some value wherever possible.

Looking forward to connecting/networking with people on the BP community!  Thanks for reading.

https://www.biggerpockets.com/forums/88/topics/717396-deal-analysis-house-hacking-in-nj

@Brad Baker Thanks Brad!  That's just what I was thinking/hoping.  I contacted my realtor on the property and already did a drive by and spent a couple hours in the downtown area to get a feel for it.  Fingers crossed.

@Jaysen Medhurst Thanks for the feedback! The $1,665 does include taxes and insurance. As for Capex, the association covers the exterior repairs and roof. The townhouse was built in 2001 so everything is still in great condition. I recently replaced the hot water heater a few months ago. I guess long term I should still be budgeting for Capex though for things like a furnace and AC unit. I would also be self managing this unit unless I decided to move out of state so I did not budget for that.

I'm really looking to get started and don't see many other options in my market other thank a house hack and renting out my townhouse.  Like you mentioned, it would be great experience and create a track record for me as an investor.

Thanks again for the response!

You have plenty of time to build experience in real estate, especially since you are so passionate about it at such a young age.  Having that high school diploma will open many more doors for you and you don't want to be held back later in life, or have to go back for a GED in your 20's.  A lot of great experiences and friends also come from high school and you don't want to regret missing out on those experiences down the road.  The last two years will fly by.  Until then, keep reading and learning.

I currently own a townhouse where my mortgage plus HOA is $1,665. Rentometer says my place would rent for $1,908, Zillow says $2,300 which seems way too high, then Zillow rental comps are around $2,000-2,100. 2 bed, 2.5 bath, with garage, near the beach.

My goal is to eliminate my mortgage payment, or come close.  I figured I could rent my current residence out, then move into a duplex and house hack for a year and only have to put 3.5% down.  Below are the details for the potential property.

Purchase price: $265,000, I based my numbers off $250,000 which I think will work for me
Taxes: $7,041 for 2018
Rent Income: $1,500 on a yearly lease and $1,100 on a monthly.  I would move in the smaller unit that is being rented month to month, so this leaves me with $1,500 in rental income
Expenses: I used 5% Vacancy since I would be living in a unit, I figured it was less likely of vacancy, 8% R&M, 8% Capex
Cap Rate: I estimate around 8%, it's about two blocks from the waterfront in an area that is improving
Recent work on house: MLS says "recent work gas heating unit and windows siding and roof"

Based on the BP rental calculator my monthly cash flow while living in the unit will be ($558), after 1 year and I can move out cash flow looks like $310 for the two units.  Renting my primary residence out now should net me over $300 per month, so total out of pocket will be around ($250) per month.

I think the home is overpriced at $265,000 and an 8% cap rate, I would try to offer $240,000 which is more in line.

Looking to see what the BP community thinks.  Thanks for reading!

Welcome Shane! I'm new to the forums and real estate investing as well. I'm located down the Jersey Shore and currently looking for my first multifamily property to house hack or BRRRR.

I met a lot of great people at my local real estate meetup.  If you haven't looked into one already, I suggest doing so.  There is a great tool on BP to find local events near you.

Best of luck!

Not fear, but trying to decide on what I want to do. I currently own a town house, so I can either house hack with a lower DP and rent out my current residence, or try the BRRRR method. I feel like with BRRRR I can grow more quickly after a refinance and rolling it into the next deal, but with the house hack I will essentially be living for free.

I moved to Monmouth Country from Middlesex County 2.5 years ago, so I am very familiar with the Central NJ and Jersey shore area.  I haven't done any deals yet, but am currently looking and working with a realtor.  If you have any questions or want to connect, let me know!  Best of luck.