All Forum Posts by: Julien Jeannot

Hi Vladimir,

Although I don't much about the Florida, my home Market of Seattle is extra expensive. I always caution investors about the "rules" and focus on the long term strategy.

You got to remember, the competition is pierced and everyone is looking for the unicorns. I've build my portfolio and retired from the W2 by taking rules with a grain of salt. In high appreciation, low cash flow markets, you'll 2x equity faster, cash flow will grow quite nicely over time and your wealth grow much faster.

My advice is to play the long game if there is a history of high appreciation. Date the rate and refi when they come down. My market also required heavy downpayment to cash flow.

If I had listened to all the advice out there I would have never bought my first househack duplex. It was on the MLS, I "overpaid" for it, and it did not meet any of the %s rules, my lender and broker were not investor friendly and I did just about everything else "wrong." Do pick one they needs work to force equity and raise rents in the short term.

Fast forward 5 years, I gained 50% in equity (forced equity & appreciation), 2x the cash flow.

Fast forward 7 years, 2x equity, cash flows $700/unit.

I unlocked the equity in a HELOC and continued to the BRRRR.

My advice is to not overthink it and jump into it. My market also required heavy downpayment to cash flow so I went down the road of a duplex house hack.

If I had listened to all the advice out there I would have never bought my first househack duplex. It was on the MLS, I "overpaid" for it, and it did not meet any of the %s rules, my lender and broker were not investor friendly and I did just about everything else "wrong."

Expensive market typically offer high appreciation over the years. Get the know the rule of 72.

Fast forward 5 years, I gained 50% in equity (forced equity & appreciation), 2x the cash flow.

Fast forward 7 years, 2x equity, cash flows $700/unit.

In my experience, fixed debt, rising rents and a long term strategy wins out every time.

I'd say do both and buy a duplex. That's how I got started.

In terms on interest rate. Date the rate, take advantage of prices coming down due to high rates and refinance when the rates come down.

Hold long term, the appreciation and yearly rent increases will catch up. Wealth is build on equity/appreciation, not cash flow.

1. 2nd home, easiest way to grow the portfolio

2. Duplex

3. Traditional financing. No challenges

4. Traditional listing. Facebook, apartment.com, cozy, exct.

5. Get started asap, don't get hung up on all the rules you read about. Seems like I broke all the rules and 7 years later I 2x equity and cash flow $700/mo / unit

6. The usual first timer property management & house maintenance items. Education and network.

Hard money / private lenders could also be an options. Rates varies, but its not uncommon to see 2% up front, and 10-11% APR. A personal loan or HELOC with lower rates would be better.

In my area, you have to come up with the full purchase price shortly after winning the bid. Most investors use hard money to do they. Either from folks they know, or a firm.

Another exit plan could be rent & refi.

Welcome!

1. Attend local investor meetup groups and get to know the successful investors int he area.

2. Jump in and get started. I've seen far to many folks waiting for the home run sitting on the sidelines for years.

I concur, 

- Get a hold of the CC&Rs if you haven't don so already and get your head around the rules, penalties and apply to your situation.

- Seek an audience with the board and see if you have appeal to their good grace or negotiate it down. Keep it super professional and respectful.

- If you still feel the charges should not have been raised. Contact the local bar association, typically they provide referrals to attorneys with a free 30min consultation.

Well, my standard answer is hire an attorney. My state is tenant friendly and far too many things can derail or delay the process.

Now, if you are feeling bold and brave. Get to know your local state&country landlord-tenant laws.

Most state have associations which provides great step by step and attorney vetted forms. In WA state Rental Housing Association of WA (RHAWA) has been my go to for years.

My advice is to not overthink it and jump into it. If I had listened to all the advice out there I would have never bought my first househack duplex. It was on the MLS, I "overpaid" for it, and it did not meet any of the %s rules, my lender and broker were not investor friendly and I did just about everything else "wrong."

Fast forward 5 years, I gained 50% in equity (forced equity & appreciation), 2x the cash flow.

Fast forward 7 years, 2x equity, cash flows $700/unit.

I unlocked the equity in a HELOC and BRRRRed.