All Forum Posts by: Emily Pierce

I've had good luck finding people on the next door app

@Nathan Ku sure! Class A are typically newer and in high-income areas. B would be more of your working-class neighborhoods and usually make good rental properties. C would be older homes in less than desirable/ low-income locations. I personally don't have any rentals in class c neighborhoods but many investors do! It's completely up to you the amount of involvement, renovation, risk tolerance you have with likely low income or credit challenged tenants. As a rule of thumb for myself, I don't invest anywhere I wouldn't live myself. Again, this is just me...I recommend sitting down and assessing the risk and return you're looking for and go from there.  

Hi @Nicolas Aiola, thanks for doing this, I know I'm a little late to the thread. I have wondered if my spouse and I can each homestead a separate property? We go between two states and would like to take advantage of the homestead exemption twice if possible. 

I've used Smartmove and Turbo Tenant to screen tenants and have had good experiences with them both. TurboTenant was great too because they have a listing syndication network that gets you on all the websites like zillow, trulia, hotpads, and a thousand others from one listing. Tenants pay for the background check and the service makes a recommendation to accept or deny the applicant on both. Also, to collect rent, I've been using Rentler and Venmo and that's been working out too. Rentler reports to the credit bureau. 

I don't know anyone locally, but I have had good luck using the "next door" app. Search for the service you're looking for and there'll be local recommendations from your neighbors on there. 

Chase, I think your assumption is correct that it's a lot harder to reduce your lifestyle than to step it up. House hacking is a great way to get started with investing and I hope you can find something. How are you going about your search? using a realtor? Don't be afraid to use more than one or search for an investor-friendly realtor (I bet there's one here on BP!) Sometimes they are aware of off-market deals. 

Tell me what you think of this as an alternative if you can't find a good multi-unit. You could search for a home in need of repairs and make the purchase with a loan product called FHA 203k. This is a loan that requires only 3.5% down AND will include the cost of repairs in the loan. You can fix up the house quickly and then move in and enjoy for 2 years. After 2 years (this is the minimum amount of time you need to live there to take advantage of the capital gains tax exemption on the sale of your primary residence) you can sell the newly renovated home and take your profits into your next deal. It's an alternative to house hacking with a renter but could be an option if your market doesn't have any multifamily units for you.

Just some food for thought!    

(1). since I am looking for rentals - would I get access to lease agreements of existing occupants as a buyer? - You can and should request existing leases and rent rolls. 

(2) . who can provide a loan for such 4-6 unit multi-family homes? and do they accept less than 20% down? - 4 units or less can secure conventional residential financing (if you want to live in one unit you can even get an FHA loan). 

(3). Do I need to or put in another way, is it advisable open an LLC to put an offer and go through the property buying process? - If you want to live in one unit I would not get an LLC because you'll lose your homestead exemption and your capital gains exemption when you sell. Traditional banks typically don't loan to LLC's so you could consider making the purchase in your name directly then transfer the deed to the LLC if the terms of your mortgage will allow this. Talk to a professional before moving forward with this strategy. 

@Brandon Turner wrote the book on this! https://get.biggerpockets.com/nomoneydown/

Evan, in my opinion, your plan to live frugally and save is so so so important at your age. If you ask people who've been in business for 10+ years, what they would tell their younger self, many will say they wish they started earlier! Live cheaply and don't let lifestyle creep set in. Once you save some money, a great transition into the business is by purchasing a small multifamily unit to be used as a primary residence. You can secure conventional financing, save money, and gain experience being a landlord. Save up your profits from the rental income and do it again. You're on the right track, don't let peer pressure from your friends compromise your financial future. Your future self will thank you!

Buying a small multifamily unit and living in one unit is a fantastic strategy to get started in real estate. Not only are you likely going to save money on your mortgage which will lower your living expenses, but you're building your "job history" as a landlord that you can use as verifiable income to fund future deals. "House Hacking" is an excellent way to get your feet wet, I say go for it!

Side note, for your first deal I'd recommend the rental in Atlanta. Managing from long distances has its challenges and you'll learn more being hands-on.