All Forum Posts by: Benjamin Sulka

@Braden Jackson I recommend my clients in Colorado Springs not put down 20% even if they have it. It's a terrible investment. PMI is so cheap that you could put that extra 15-20% into a US treasury bond and have more than enough to cover PMI.

Also, It limits how quickly you can scale to the next house hack because it takes more money per investment.

It also drastically brings down the Net Worth ROI when you put 20% down vs 5%.

Braden,

This post by Ryan is fantastic and this is my philosophy as well. Paying 100-200 bucks a month for mortgage insurance is a small price to pay to be able to get a house hack with a low down payment.

If you can go the 5% conventional route, do it. FHA is still an option but you have to refi out of it to get rid of mortgage insurance.

Mortgage insurance falls off of a conventional loan at 80% LTV if you request it and 78% LTV automatically.

Maintaining a solid percentage of capital as possible should be the goal if you are looking to scale your real estate portfolio.

I'm in the same boat as you, brother. Buying my first house hack this year and learning a boat load in these househacking forums.

You got this!

Thanks for the response Ben! Totally agree with you and Ryan regarding the PMI. Great insight that I think is often a worry for new investors at first glance. Goodluck with your first HH as well. Keep us updated on your success!

I appreciate it, Braden! I'll shoot you a message so we can stay in contact.

0 Votes

Dallas, Texas

@Dan Sheeks
Cameron could be someone to reach out to for the community!

1 Vote

Huntsville, Alabama

Cameron,

Welcome to BiggerPockets!

Check out Meetup.com or EventBrite and search for real estate events in your particular location!

You can also set up keyword alerts in your settings here on BiggerPockets. Try something like "meetup" and "huntsville, alabama", or "REIA" and "huntsville". Something like that.

I was in the same position as you about 6 months ago. Started finding real estate events all over my area and going to 2-3 per month. Have met some awesome people and learned a lot.

You got this man!

1 Vote

Huntsville, Alabama

Quote from @Isaiah Lopez-Torres:

Quote from @Danny Sanchez:

Hello everyone,

I want to hear everyones opinions on using downpayment assistance programs for a multi family investment. I know that nothing is free, and that some programs require you to pay the DPA loan back before you move out but what else is there to have in mind that I should know about. What is something you don't recommend or do recommend?

Definitely look into your states DPA programs. Ohio has the OHFA DPA which provides either 2.5% or 5% down assistance. There is a slightly higher rate with it and you have to pay back the assistance if you Refi or sell with this program. Your state might have a similar program.

My lender was able to ulitize the DPA for a four family I am trying to house hack. Good luck!

Isaiah,

That is awesome. I'm an Ohioan as well and I'd love to hear more about your experience with that program!

1 Vote

Minneapolis, Minnesota

Unless you find a gem, most properties won't cashflow because of the low down payment (and therefore higher principle) and because of higher interest rates. Especially in a higher priced area.

While house hacking, the goal should be to pay less than you would renting and then turn into a full time rental once you move out. Or don't move out and you're still paying less than you would renting and you now own an asset.

I'm personally looking to buy in a nicer neighborhood in Northeast Ohio and accepting that the property won't cashflow up front. Unless you're trying to use real estate to replace your income, then buying a nicer property in a nicer area will do much more for long term wealth building. At least in theory.

You got this!

2 Votes

San Diego, California

Check out Holton Wise.

One of the founders, James Wise, is here on BiggerPockets.

0 Votes

Cleveland, Ohio

Gustavo,

Since house hacking isn't an option, you'll have to put 20-25% down.

A rule of thumb that gets thrown around on BiggerPockets is to have 6 months of PITI in reserves.

So for simple math, if you buy a property for $100k, put 25% down and your monthly PITI is $1,000 a month (just for math purposes, this isn't an actual number) you will need to have...

$25k + $6k = $30k

1 Vote

Philadelphia, Pennsylvania

Congratulations, Gregory!!

Wishing you the best in your future real estate endeavors.

0 Votes

Jarred,

Wanted to touch on the DSCR route that Aj mentioned above.

$30k in savings is fantastic but DSCR loans require 20-25% down. Even buying a $100,000 property wipes out almost everything and that's assuming you don't have to make any initial fixes/repairs.

Retaining as much of your personal capital as possible should be a priority so that you can cover anything that may come up in your property or in your personal life.

I don't know how planted your roots are in NY but it may be beneficial to go house hack in a more affordable state. Put 3.5-5% down, retain most of your capital, and get started that way.

You won't cash flow in most places while you're house hacking but the goal should be to pay less than you would renting.

Just my 2 cents as someone who is buying a house hack this year as well. If I can put down 5%, retain a lot of my savings/emergency fund, and pay less than I would renting, then it's a win.

Best of luck!

1 Vote

David,

I'm in the same boat as you and I want to let you know what my plan is.

I'm buying my first house hack this year in my own personal name. Eventually, my plan is to put the property in its own LLC. Not even really thinking about that because I'm prioritizing taking action and actually buying real estate.

Trying to focus on one thing at a time and the most important thing for me is just buying a property and getting started.

Good luck man!

0 Votes

All Forum Posts by: Benjamin Sulka

Benjamin Sulka has started 53 posts and replied 809 times.

Post: Househack Financing Advice

Post: My dream and introduction

Post: My dream and introduction

Post: Down Payment Assistance on Multi Family Property

Post: Strong Househacking Markets Near Me

Post: Looking for a Contractor and Property manager in Cleveland Ohio

Post: Down payment amount

Post: The great benefits of house hacking

Post: Looking for advice

Post: Should I create an LLC before I buy my first property?