All Forum Posts by: Joe A Warner

@Austin Vawter When you say 75% of the “net” income needs to cover mortgage, I assume the “net” your talking about doesn’t include the mortgage already?

Also, thanks! I had no idea that was a thing with FHA loans.

-Joe

@JayCinta Henry I believe you are required to live in the FHA financed for at least 1 year. After that you can refinance with a different loan type and then do another FHA on a different property and live there. You can only have 1 FHA loan at a time and you have to live at the FHA financed property at last a year.

Hope that helps!

-Joe

@Nathaniel Hovsepian My thoughts exactly! Doing it this way seems to provide a lower barrier to enter the investing world and is a great learning experience since I'd live on the property. Do not have a specific property in mind yet but looking in the $125-150k range. In my area "average" rent is close to $350 a bedroom.

Hey BiggerPockets!

Does anyone have any experience doing this and willing to share?

I am looking at purchase a duplex that would also be my Primary residences. Live in one side with roommates while renting out the other side. Just curious of everyones thoughts on this as a first investment. Would love to know your experiences with doing this specifically with an FHA loan.

Thanks!

-Joe

Thanks everyone for your feedback! My current employer does have the ROTH option with their 401(k) and I definitely take advantage of that. I am 100% vested after 6 years.

I have heard a lot about the solo 401(k), that is an interesting option. I didn't realize how flexible that was as far as investment selection, I will definitely have to look into that more!

Hello,

Today I read "Set For Life" by Scott Trench. It got me thinking about my current situation with my 401(k). 

My background: I am 25 years old and am focused on absorbing as much information as possible about real estate investing. Currently I rent, but here in the next 4 months I am planning to purchase a duplex in my area and house hack it living in one side with roommates while renting out the other side. After that I will focus on multifamily properties and grow my portfolio from there. My goal is to achieve financial freedom by age 35. Right out of college I was a commercial loan officer for a couple years and now I work for a financial tech company that caters to banks. I contribute 6% to my 401(k) as that is what is required to get my company match.

My plan is to keep my 401(k) balance where it is (not withdraw) as I don't want the tax burden, but my questions is... Would it be better to stop contributing to my 401(k) and use that money to invest in real estate instead? My thought process is that if I am wanting to "retire" by 35, investing in my 401(k) doesn't seem to align with that goal very well as that capital is locked up until I turn 59.5 and can make withdrawals. Wouldn't it be better to put that money toward real estate to accelerate my investing early?

Thanks,

-Joe