All Forum Posts by: JooYung Choi

If I were in your shoes, I'd keep that 2.65% rate. You will easily cash flow and as long as you are able to manage out of state, it'll just be a nice cash flowing property in your portfolio. 

If managing out of state is something you'd rather not do, you could also hire a property manager or a find a cohost to explore the MTR option. 

Also something to think about is if you did sell, what would you do with the money? Opportunity Cost!

Hey Brandon,

You have plenty of capital to start your search now. Personally, I don't like to do 20% down for a house hack but rather 5-10% and use the remainder to renovate the home. You'd be able to force equity and if done correctly, you'd probably be sitting at 20% equity and drop that PMI anyway. The key for investing in New Jersey lies with the appreciation. You aren't going to find incredible cash flow (unless you MTR). I am willing to bet that in 7-10 years, even if you did nothing to the property other than maintain, you would be sitting on a lot of equity.

Best of luck!

Hey Bonnie,

I second the MTR option. Of course you will have to spend some money furnishing, pay utilities and manage the property more. The trade off is significantly higher rents! That's how I am able to cash flow in a market like New Jersey where high home values & property taxes really kill all deals for long term rentals.

MTRs would be a great pivot to cater to the digital nomads! I don't think it affects vacation rentals because you will always have a large pool of vacationers travelling to your market. But if you have a property in a major city, the MTR game is extremely powerful. 

Definitely the right way to do it. If I were to go back in time, I would have also gone for a MFH instead of a SFH. Work your numbers conservatively and definitely budget a little more for your capex / vacancy. Fourplexes are hard to come by in North Jersey and competition is fierce. If you are open to it, duplexes would also be a solid first house hack. Good luck!

I would say getting a modern front door and painting your garage door would bring value to the home. Gotta stick to a theme and color scheme!

Hey Andrew,

Congratulations! Sounds like a great deal. You were able to buy a property off market, do powerful renovations, and now you are sitting pretty with 4 rentable units and lots of equity. 

Keep up the momentum and kill it on your next deal too!

Hey Devon,

I would definitely move to your next house hack, even if it means you are coming out of pocket. Keep it short term with only a year in mind. Once you leave your next home to buy your 3rd property, now you are renting out 4 + units and certainly more cashflow. Not to mention the appreciation and equity build with more properties (maybe another HELOC?)

Plus moving to your house will allow you to take advantage of the best loan programs!

Hey Matt,

I believe in real estate as a long term investment vehicle. Cash flow is nice and definitely important but true wealth is built in equity. The longer you are able to hold your property, the more time appreciation will have to do its magic. You can also force equity by buying homes that need work and getting it up to market standard. When you have equity, you will always have options. 

Definitely talk to a couple of lenders to see what you are pre approved for. Keep in mind if you buy another primary residence, you'd have better rates, terms and can pay as little as 5% down for multi family up to 4 units. Investment properties will need 20% down. 

I would try to work with investor friendly real estate agents. Whichever investing route you decide to take, your agent should have good insight on what you are trying to execute. 

If you can seller finance a property in your neighborhood, that's a huge win! 

Best of luck to you and your wife!

Have you considered switching to an MTR model? Check out some AirBnb monthly comps in your neighborhood to see if it is worth the upfront furnishing costs, monthly utilities and other expenses like professional cleaning and landscaping.