All Forum Posts by: Isaac Pyle

@Alexander Felice that all makes sense, thanks for the long reply! I agree, I like the idea of being straightforward with tenants and letting them know that I am the owner.

Thanks @Ned Carey, I suppose I will have to re-evaluate the advantages of being younger than my tenants. (That might sound sarcastic, but I assure you it is not)

@Alexander Felice I appreciate the feedback! That sounds like a good idea, but because my first property will be some kind of house-hack, it won't make sense to have a property manager yet. Also, I was under the impression that the first one or two that I did, I would manage it myself. Just to get the experience and understand what goes into it. Thoughts on this?

And @Alex S. I don't think this would work as I am planning on House-Hacking and they would see me living in either the same building, or the unit next to it. That is a good idea though!

I should have mentioned the house-hacking part in the original post, huh.

Hello BP Community!

I am educating myself on REI and learning what it would take to pull something like this off. I see where some pieces would need to fall for me to begin down this path, but I am concerned that I would get lousy tenants if I am a 20 year old landlord (I am 19 now). What are your thoughts on this? If your landlord looks like a young college kid, would you worry less about the property you are renting?

@Cory Carlson Makes sense. It's weird, because I am listening to podcasts and reading older forums, and these numbers would not be worth looking into a few years ago. Guess things change pretty quickly. 

(Just to make sure I follow correctly, you're saying 7-10% cashflow including principal amortization? Or 7-10% cashflow plus amortization?)

@Steve K. On top of that, thank you for taking so much time to write all of this out for me. This really is a valuable resource that I will refer back to. And thank you for the cautious encouragement!

@Steve K. I have been looking for a post like this. Thank you so much, this is some of the best advice I could ask for. I have a lot to consider, and so do my parents. I appreciate the step by step plan to get started, because the whole process is daunting at first. This has simplified it as much as it can be simplified. I am ready to take on this kind of responsibility, and it's great to hear that with the right plan and a lot of hard work, it could pay off. I will keep doing more research before pulling any triggers and will have lots of conversations before anything comes close to starting, but this is incredibly valuable information. Thank you.

@Steve K. that makes sense, you're "adding value". And I suppose I was not considering how appreciation would be different than normal in Boulder, where it is constantly appreciating faster than many other cities. But regardless, if I am looking to house hack and cut out rent from my bills, then I don't need to worry about cash flow vs. appreciation near as much! That is an excellent point. And that is good to hear that you think it is doable, I have had some doubts. Seems like a lot of money to be playing with that isn't mine to lose. But I definitely think I can do everything in order to make it successful. Thank you for taking so much time to help! Much appreciated!

@Steve K. First, let me just say thank you, this is a wealth of information that answers a lot of questions I have been having!

A few things I am wondering:

1. When you mention "value-ad triplex" or duplex, what does "value-ad" mean? (Might be a super newbie question)

2. I have heard / read that when a recession starts, it is better to have cash flow instead of appreciation, but that sounds backwards to what you write about here. What is your take on that? Is Boulder County just different and not affected the same way?

3. My only major concern with going forward into real estate is that I have no significant source of steady income. Because I am in school throughout the year, I work a lot over the summer waiting tables and doing odd jobs, but that does not qualify me for any loans remotely close to mortgage values in Boulder County, and because of this, the only way I could get a place is if:

A) My parents helped with the down payment, and

B) They also co-signed the mortgage and we used their income to be approved for the loan.

What are your thoughts on this? Thank you for taking so much time to reply with so much information!

@Trevor Jacobs well I am primarily just looking for a duplex cheaper / free living while in college, and then moving out and renting both sides for a potential profit. Appreciation has been increasingly hot over the last majority of a decade, although it has been slowing down a bit. I am not going to look in boulder however, just used it as an example. I am looking in places like Longmont, Thornton, Bloomfield, etc.