All Forum Posts by: Jason Fairchild

Quote from @Alan Asriants:

This is just my 2 cents on what strategies I recommend for new home buyers/investors. Everyone's journey is different

If you can, I think buying a solid 2-4 unit property in a solid area utilizing an FHA loan is an amazing way to get started.

Benefits:

-Hands on experience in your own backyard

- Your own roof over your head

- An asset that will appreciate overtime

- A 2-4 unit investment with only 3.5% down

- Chance to reuse FHA for another 2-4 unit property and continue using low money down

- Tax incentives on your own home

Another advantage to owning multi family over single family is your cost per sqft and rent potential. By cost per sqft, you generally are renting at a higher cost per square foot because your unit mix are smaller. For example, in my area, a 800sqft 2 bed 1 bath rents for $1700/m ($2.13/sqft) while a 1800sqft 3 bed 2.5 bath rents for 2700/m ($1.5/sqft). Don't forget when your tenant moves out, it is a lot more expensive to freshen up (paint and clean) an 1800 vs 800 sqft place.

By rent potential I mean this: Every year you should increase your rent. If you increase rents on your properties by 30$/m for 5 years, thats $150/m. If you had just one unit, that's $150/m more in 5 years. With 3 units, that's $450/m more. Thats the power of having more units

This is why multi family has such a premium price tag.

Long term, getting that low money down duplex should have more benefits than waiting to save 20-30% to get one

Hope this helps!

This is exactly what I'm hoping to achieve! 

Quote from @Abbey Humphreys:

I agree with the consensus here that house hacking is a great option for starting out, though the first step into REI is dependent on the goals/personality of the investor. House hacking is really good for dipping your toes into landlord-ing and managing tenants, but it can also be stressful living with strangers and not having your space to yourself. It's all about personal preference and what you're looking to achieve.

 
You raise some good points about the pros and cons of house hacking. It can be a great way to get started in real estate investing without a huge capital outlay since you can live in one unit while renting out the others. This helps offset your mortgage and expenses. However, as you mentioned, not everyone may be comfortable living with strangers as tenants. It requires more hands-on management and compromising on your living space. Ultimately, whether house hacking is the right first step comes down to your goals, risk tolerance, and personal preferences around privacy and sharing space. It's not a one-size-fits-all approach, but for the right investor, it can be a smart way to dip your toes into landlording and leverage real estate early on. There are merits on both sides to consider.

@Evan Polaski  Hello Evan,

I'm currently still living in my parent's home so I don't own a home sorry about that but this is great advice.

Thanks!

Quote from @Jake Andronico:

Quote from @Jason Fairchild:

@Jake Andronico It's great to hear you've had success house hacking in Reno! I've always wanted to move to Nevada. Turning your primary residence into a rental property can be a clever way to get started in real estate investing. Building up to owning multiple cash-flowing properties is an impressive accomplishment.

I still need to do some more learning but it's leaning towards House hacking.

Thank you so much! 

 Thank you man! You can certainly do it. 

I love this spot near Lake Tahoe. 

Good luck on your journey and I wish you a lot of success :)

Thank you for the kind words and encouragement! I'm glad you have a special place near Lake Tahoe that you enjoy. Wishing you all the best on your own journey as well.

 

Thank you for the kind words and encouragement! I'm glad you have a special place near Lake Tahoe that you enjoy. Wishing you all the best on your own journey as well.

Thank you for the kind words and encouragement! I'm glad you have a special place near Lake Tahoe that you enjoy. Wishing you all the best on your own journey as well.

@Jake Andronico It's great to hear you've had success house hacking in Reno! I've always wanted to move to Nevada. Turning your primary residence into a rental property can be a clever way to get started in real estate investing. Building up to owning multiple cash-flowing properties is an impressive accomplishment.

I still need to do some more learning but it's leaning towards House hacking.

Thank you so much! 

Hello Tatum,

Thank you for sharing this insightful perspective on getting started with real estate investing. I agree with Trevor that house hacking can be a lower-risk way for beginners to dip their toes into the market and start learning the ropes of being a landlord. The ability to live in one unit while renting the others helps offset costs and provides hands-on experience.

You made an excellent point that the best investment strategy is unique to each investor based on their goals, time, experience, risk tolerance, etc. There's no one-size-fits-all approach. It's wise advice to explore multiple real estate investing models to find the right fit based on your circumstances. The beginner's guide Trevor mentioned seems like a great starting point to spark ideas and get educated on different options.

I appreciate you adding your voice to this conversation to encourage me to do more research, keep an open mind, and find a real estate investment strategy aligned with my specific needs and goals.

Hello Trevor,

Thank you so much for responding. I've recently read up on House hacking; it sounds like a fun idea. My buddies and I have actually talked about renting out an apartment to split the rent, but why not do it through House hacking when I can generate some form of passive income while I charge rent? It's a unique idea, and I'd love to learn more about how to get started.

Hello everyone, I came across one of Biggerpockets's webinars and remembered David Greene stating it's best to specialize in one niche or strategy when getting started. I was wondering what everyone thought about this. Thanks!