All Forum Posts by: Grace Wang

@Yonatan Cintron - Hey Yonatan -

A real estate license can be worth it if you do at least one in-state deal a year. You'll be able to earn back your real estate agent fees with the commission you earn from one deal. It may also be worth it if you get your license and you refer other clients/investors to another agent; doing this will allow you to earn referral fees.

Getting a license is NOT necessary to build confidence and knowledge. Confidence and knowledge is built through consistent education, hands-one experience, and constant networking. 

Hope that helps

Pros of turnkey: 

• - up to date with current design trends (comparable to apartment new builds)
• - easier to rent out and attracts more potential tenants
• - no work necessary AKA less time lost with rehab work

Cons of turnkey

• - may require some "breaking in". you might need to bring in contractors to fix things here & there
• - you don't know what's under the beautiful face of the property. flips can sometimes have terrible bones
• - quality of craftsmanship is subpar

My first house hack needed a ton of work. Tenants had been living there for the past 10 years, but I bought the place seeing the bare bones of the property. Knowing the problems from day 1, I was able to fix it up to my standards. The tenants have rarely had complaints of something not working since updating the place.

My second house hack was turn key, and as I've broken it in, I've discovered how shady the flip was. Ha! I've spent $15K so far on fixing the flip and i'm expecting more issues to come up as tenants move in, and as we get through all seasons of the year. I bought this place in a rush, partially because location, but also the Denver market has been crazy competitive so I didn't want to lose out on my ability to get under contract by a certain date... rushing is not recommended. This isn't to say ALL turnkey properties are like this -- just do better due diligence than me and you'll be fine.

Lessons learned: You'll spend money on the property no matter what condition you bought it in, but hey! that's the real estate game. I like to keep remembering that I'm in it for the long-haul; purchasing real estate will be very forgiving, and you're usually able to come out on top even if you slip up at times. 

Hey  @Anye Wanki, your question is a loaded one, ha! There are many best practices and many aspects that can make a SFR a good house hack, but here are a couple thoughts:

When researching various areas in the Atlanta area, you'll want to become familiar with local regulations regarding tenant laws. For example, in the Denver area we need to be aware occupancy regulations; some suburbs allow 6 unrelated adults to live in a SFR together, whereas others may allow 3, 4, or 5 to live together. There may be other things to be aware of, so reach out to an investor-friendly agent who 1) house hacks/invests himself or herself 2) regularly works with investors. They will be familiar with STR laws, occupancy regulations, best areas to invest, etc.

To figure out room rental rates, jumping onto facebook marketplace and other facebook groups to see what others are renting out the bedrooms for is a great place to start. You can also confirm rental rates with your real estate agent. And as @Kevin Paulk mentioned, read the House Hacking Strategy! you'll learn tons from it.

hope that helps!

Hi @Jordan Moore! Here are a couple more books for you, also published by BP:

1. 1) Set for Life by Scott Trench
2. 2) The House Hacking Strategy by Craig Curelop

I read those exact same books you outlined before I got started, in addition to the two above. Don't lose sight of the long term game... and once you are financially ready, do not fall into analysis paralysis! Your first deal may not be your best deal, but your first deal will teach you SO much. Stay excited, motivated, and never stop educating yourself. Rooting for ya!

Agreed with @Matt M. -- There are many agents out there that will do this, in hopes to get that same highest offer that already won. I mean, if they've already told you you're in second place...why change your offer?

My go-to mindset is always "everything happens for a reason". It's hard not to get attached to properties we lose out on, especially if the numbers work well. Perhaps there is a deal waiting for you that cashflows even better than the one we're talking about. 

This market is insane, but stay at it! You'll get something good out there :)

@Nick Monge is on the FI team and he works with quite a few clients specializing in those areas! It might be worth setting up a call with him to see what's up

-Grace

The FI Team

Hey @Steven Norris, welcome to BP! I'm a Realtor in the denver area. Would love to chat real estate some time!

Hey @Ethan Brown, house hack where you end up going to dental school! If I were you I'd rent the bedrooms out to your fellow dentistry classmates and hold epic study sessions. I'm not familiar with those markets you mentioned, but generally speaking, renting out a bedroom is WAY more affordable than renting out an apartment. If you're able to purchase a turnkey place with a decent bedroom-to-bathroom ratio, you'll really have a win-win situation. 

To become more familiar with your market, find some investor-friendly agents and ask them which areas are best to invest in. You should also ask if they have other clients house hacking/investing and ask about the successes in which those clients have had.  If possible, use an agent that also invests themself! Once you feel confident in the market, start house hacking. You'll be glad you did, as it will help you get into the real estate game, save on living expenses (and pay off dental school?!?), and contribute to retirement. 

Message me if you have any questions and i can help as best I can. Hope this helps!

@Kevin Noonan Hey Kevin -- the Denver market is not impossible, as others mentioned in previous replies. It's of course easier if you purchase a property as a primary residence and take advantage of being able to put down a low percentage on the down payment, but good news is...that's not the only way. Now i"m not sure how much capital you have to invest, but certain parts of denver still have a lower barrier to entry (barnum, athmar park, ruby hill). There are also properties in Sherrelwood (unincorporated adams county, but denver address) that are more affordable and still within 15 minutes of denver. Aurora is also a great place to start. Certain parts of Aurora are quite affordable and can still yield a decent cashflow with a lower price point. Are you looking to use cash you have saved? or will you pull a HELOC on your primary residence?

@Yllan Lalic Hi! 

Being able to live at home, and for free, is obviously awesome because you get to save a ton (and still get free meals, ha!). 

however, i am a strong supporter of house hacking; it will not only get you into a place low-money-down (as @Natasha Jansenmentioned), but will also teach you how to screen tenants, work with contractors, analyze a deal, maintain the house, etc. It will give you the confidence to move onto other deals! Many big-time investors started out this way. In a best case scenario with house hacking, you'll be living for free in addition to cash-flowing and having tenants build up equity in the property. 

I am not familiar with the Winnipeg market, but you should link up with some local investors and investor-friendly agents. Chat with them, ask about the best rental strategies and use these resources to guide you in the right direction. No two people have the same story, so be flexible and open to different opportunities. Rooting for you!