All Forum Posts by: Julien Jeannot

@Camron Mire

I'd start the interview process now for the realtor. A good realtor will have great lender recommendations which you want to spoke to sooner rather then later in case there is work to do to set up up on a loan.

@Alex Gonzalez

Hands down house hack the duplex!

That's how my wife and I built the foundation of our real estate portfolio. 10years later we own 10 properties and it gave me the ability to chose to exit the corporate world.

Here is the thinking behind buying the duplex in the first place and the results.

Goals

1. Start building a rental portfolio
2. Needed a place to live and did not want to rent
3. Safe location
4. Subsidized living (house hack)
5. Garage
6. Privacy
7. Able to commute to work
8. Value add play that I could do myself or hire a contractor without breaking the bank

Solution

• Property: Duplex
• Condition: Cosmetic rehab & rents under market
• Neighborhood: 1970ish, safe, long but doable commute
• Garage, big yard & subdividable – will build DADU eventually
• Did not match any of the of the “standard” rules. Ex: the 1%.

Results over time (5+ yrs)

• · 2x equity
• · Cash flows $1500/mo
• · Fully rehabbed
• · Used a HELOC to finance another property's rehab

@Palani Willingham

Sorry to hear. The only thing I'd add for the next purchase: the responsibility of due diligence is yours alone. Trust the agent, but verify. Interpreting legal docs such as the CC&Rs fall into attorney territory which an agent is not licensed. Many will perform that service, but that opens them up to liability.

Another approach is to confirm your understanding of the rules with the property management company or the HOA board. Its not fool proof, I've seen plenty of HOAs sued due to lack of understanding over their own documents.

@Josh Sidhu

Welcome!

I'd recommend looking into house hacking:

- A duplex

-A Split level SFR where the downstairs has all the amenities of an ADU

@Tyler Piciullo

Yeah, I can fee your frustration. RE investing is a very competitive sport, the players are sophisticated and leverage a lot of competitive edge to beat out the competition.

I'd suggest playing out the long term game with year over year appreciation and rent increases and see if the properties pencil out to your goals.

@Sergio Martinez

Welcome! 

I'd echo the replies from the other folks and add a few more:

- Find a local RE broker who specialized in house hacking. Their deep knowledge and team will come in handy

- Network with local investors

- Go for a 2-4 unit if you can swing it.

@Manco Snead

I'd leave one unit open for the same reasons as the other replies.

Wild stuff. Thanks for sharing.

Its a great reminder to treat it like a business, have processes in place and to follow them at all times.

@Alecia Loveless

Sounds pretty good.

@Richard Phillip Lewis

I have similar situations with my rental in WA. The utility companies will hold me accountable if the tenant does not pay. I have the necessary clauses in my lease agreement to reflect.

I have the tenants place and pay all utilities in their name. Should they not pay, I go after the tenant if it makes financial sense.