All Forum Posts by: Jed Hefner

@Josiah Sia Welcome to BP...I literally felt myself looking in the mirror reading your post .

IT mgr, SA area, looking to pursue REI to fast track financial freedom...all of it.

I’ve been around BP for a little over a month and consuming content like the fat kid at the buffet.

As @Rick Pozos said, a huge factor in getting started is all about living below your means and taking every bit of margin and building up strong reserves before getting into your first deal...I am about 6 months away from jumping in and spending that time running numbers and analyzing potential deals while building my networks of people way smarter and more experienced than I am.

I’d love to connect and compare notes and see if we can help each other along this wild journey.

-Jed

@Jose Salinas my wife and I bought our first home in 2015 in SA and are just looking at getting started with REI...and we're seriously considering this approach as an option.

I’d love to hear more details about your experience and how you made the transition.

Loan / investing approach question:

Existing primary residence (3br/2ba 1600 sq ft with a pool) is currently on 15 yr conventional with approx 60% equity. (Payoff is $85k, House could sell north of 200k). Separately, I will have around 30-40k in cash around end of year looking to do first RE deal...considering possibilities of small MF (maybe 4 plex) and thinking of possibilities of arrangement and financing. Not married to an FHA vs conventional, but my understanding is that for an FHA, it must be primary residence.

My challenge is that I have a growing family (wife and 3 kids under 5), and it might be hard to move into a smaller space...any advice on potential options to get into the RE game once past the roommates stage for house hacking?

I was thinking maybe occupying 2 units in a 4-plex and renting out our current home.  Recognizing that would cut into cash flow for that hypothetical 4-plex, but would open up rental options for current primary residence.

Am I just way overthinking this?  Has anyone else done something similar to get started? 

TIA

-Jed
(p.s. realized I probably posted this in the wrong sub-forum initially.  Please ignore duplicate). 

Loan / investing approach question:

Existing primary residence (3br/2ba 1600 sq ft with a pool) is currently on 15 yr conventional with approx 60% equity. (Payoff is $85k, House could sell north of 200k).

Looking to do first RE deal...considering possibilities of small MF (2-4 plex) and thinking of possibilities of arrangement and financing.

My understanding must be primary residence for purpose of FHA...anyone have experience with getting into RE like this?

My challenge is that I have a growing family (wife and 3 kids under 5), and it might be hard to move into a smaller space...any advice on potential options to get into the RE game once past the roommates stage for house hacking?

I was thinking maybe occupying 2 units in a 4-plex but also recognizing that would cut into cash flow for that hypothetical property, but would open up rental options for current primary residence.

Am I just way overthinking this?

TIA

-Jed

@Bill Buzzell@Matthew Paul @David Stumpf - thanks for the feedback guys.  I was probably still looking at this from the perspective of what is convenient for me, and wasn't considering the cost or impact to the contractor's business.  

Thanks for the perspective and tips on how to approach contractors on this topic.  Absolutely agree with David that the service provider gets to decide how he gets paid, and if it ultimately doesnt make sense for his business, then I need to be happy writing a check. 

Anyone ever used modern apps like paypal, venmo, etc. to pay contractors?

Any contractors accept these modern payment formats & have advice on convincing someone to take the time to set it up to accept these payments?

My thinking is that I want to add value to my contractors by being able to pay them virtually instantaneously, as we all know speed of payment and fast cash flow is important to their business....but lately, I have struggled to convince a couple of guys to adopt these payment methods.  

Any thoughts are appreciated.  TIA

@Jeff Bridges - Sorry to resurrect here...but I had never heard of a being able to re-glaze a tub until your comment. 

Will that work with vintage 70s yellow tile/tub as a possible way to inexpensively update from the original from yellow to white?  Is there any downside on the durability of a re-glaze?

Great summary of your deal and the after-action is super helpful to other newbies like myself.  

@Jason Lee Thanks for the mention.  I am visiting some friends in Chicago until after the 4th, but I will reach out as soon as I am back in town.  Watch your PMs for contact info. 

Thanks,

Jed

@Zachary H. Thanks!  Spent a couple years in your stomping grounds at the college of the same name.  Always good to hear from back home :)