All Forum Posts by: Joey Llamas

Hey amazing Bigger Pockets Community!

I wanted to reach out and see if there was any active fix/flippers in southern California. I am looking to connect and meet up! I am new i've never done a flip but i am learning about it and goal is to do a fix and flip this year. Please reach out I am a go getter and want to be able to have financial freedom soon! Lets go!

 Great point made thank you! Usually homes here go around 350-450 for a 3-4 bedroom house. Definitely make a good point on the biggest house with the lowest price. More bedrooms = more money. Definitely don't want to have analysis paralysis and stop me from making a deal your right just need to dive in! I have been in the workforce for 4 months total now after college so I'm saving AS much as possible to put a down payment on a house. Also was thinking of partnering with one of my coworker who is currently doing a flip and doing one with him or multiple and make some profit and some of that profit can go into my own house hack. Still weighing my options and education myself. Currently at this point of commenting i am ready the book on flipping houses by J Scott.

Great thank you I'll have to listen to that podcast very soon!

Wow very amazing information that I’m going to use throughout the week and weekend analyzing deals. I really appreciate this insight and your guys experiences aswell. Going to look at Facebook Craigslist and Zillow for renting and compare it to potential deals. Didn’t keep in mind the future if it will cash flow when I move out which sounds very important to consider. Thank you all! One quick question for you @Bradley Dosch, when you say you consider location what exactly do you look for low crime rate, high house values? 

Hey BP!

I was studying Real-estate and a question came to my mind. When determining if a potential house will be great for house hacking what is the criteria to look for? Should i be using Cap rates, COC return, or which other metrics to guide me in this? Or just freely find a place I like and go from there? I believe there has to be some metrics to keep me in some boundaries when analyzing potential house hacks. Also if anyone has any ideas and have house hacked, how do you determine the rents on your rooms? I would assume that you don't just divide your total mortgage by each room and adjusting by square footage of each room. I'm curious to anyone who has/doing this and hearing your guys viewpoint. Thank you!

I see so I wouldn't be able to do a 1031 exchange on a Primary loan only an investment loan. Okay well good to know, looks like i will be saving up and using that primary loan option with low down payment to house hack.

Hey guys!

I was wondering if anyone knew if I could purchase a home as a primary residence with the intent to flip it? Only reason is because of the low down payment options. 

I’ve seen on podcasts that you need to be a primary resident for one year which is why I wonder if you can sell a primary in less than a year?

Yes this was helpful thank you @Bryan Balducki. When I cross that bridge and have to see about my current living situation I will come up with a better plan. I’ll have to dig deeper on the qualify $$ portion if I do decide to rent by the room and I’m glad to hear that I can potentially tell them about renting out the other units and it contributing to my loan amount besides just my personal income. I’m super excited for this journey and being apart of the real estate community!

Hello BP community!

I’m 24 years old and want to begin taking action to financial freedom. Taking the advice from Brandon turner he mentions you need to have your crystal clear criteria as this will narrow down and tune in what you should start looking for.

My CCC would relate towards my goal of beginning my momentum train through house hacking

1- primary residence, anywhere from single to four plex depending on if I have the capital to.

2-It will be in the same city or nearby from where I currently work in Palmdale CA. 

3- condition, not to sure to be honest if I get a fixer upper what repels me from this is not having to capital to fix it. Not to sure what options I have for that.

4- the price range well, I talked to some loan officers and they mentioned I can get a 325000 ish house for about 2100 a month was kinda the ball park. I’m not to sure if I can qualify more if I mention I plan on making money with renting the rooms or potentially other units out though?? I know this may play into the loan to value stuff they officers use? Does anyone know more about this, I though I heard this on a BP podcast on house hacking but didn’t go to much in detail about it.

5- profitability, well my goal is to live absolutely for free!! Of course though if I do have to pay out of pocket for a portion of the mortgage payment I would be okay with paying less than 500 a month. My current living expenses for renting a room in a house including utilities is about $1000. So if I can get below that it’s a win in my book. 

I just wanted to post this and see any input from the community on any tips or just comments, I’m a newbie but have the drive to not be a slave in a company where I am replaceable and cannot make my own schedule. By the way real estate is freaking cool!! 

One question I do have is that I’m stuck on a 2 year lease with roommates for a house. Since we all moved here for work back in July of this year. I really don’t want this to stop me for 2 years before I buy a primary residence and house hack it. It’s possible to leave the lease right? 

Looking forward to community engagement:-)
 

I appreciate all of your guys comments and opinions. Has really opened my mind out and be able to really detail what is the best option. I definitely understand the importance of knowledge and how I wouldn't want to put all my eggs in one basket per say. From the looks of the company match if I max out at 8 percent they essentially match 6 percent. Which like how you mentioned @Roarke Van Brunt is free money. Didn't actually look to see if i am vested 100 percent meaning how much I can take out and after doing the math I am only able to take out about 60 percent of that vested balance which end up being the contributions that I am putting in while my companies stays in the account. It does make sense to have another stream of revenue it just sounds profound that if i wanted to take MY money out in this retirement vehicle I have to pay interest which is very frustrated to be honest. Also the retirement vehicle that I am currently enrolled in is a hybrid Roth/401k, meaning my contribution is post tax while my companies is pretax. It's great to hear the opinions of all of you because it makes me think and dig into the details.

@David Held You make a good point looks like it is relatively easy to take out the loan on a 4.65 percent interest if i needed to. Only downside it would be only my contributions that i can take away but the upside is that the company match is still compounding for me too. You make a great point, I do plan on becoming serious and I have noted the outlet of a self directed retirement plan too with the cashflow/capital gains I plan to make in the future.

I will let you all know about my progress in soon when i land my first deal and start my momentum in real-estate thank you all!