All Forum Posts by: Long Thao
Long Thao has started 2 posts and replied 9 times.
Post: Am I doing it wrong or just not seeing the big picture?
- Minneapolis, MN
- Posts 9
- Votes 1
Quote from @Henry Clark:
OP try or add some value add strategies to your deal. Might not help your cashflow but help your appreciation. Takes the high interest rates and makes them cheap.
Your multi family. Pick ones where you can make a 1/1 into a 2/1, or a 2/1 into a 2/2, etc.
Or with a large lot or acreage you can subdivide and sell a lot.
Or find a great older neighborhood. Buy the ugliest house there and Reno.
Use the 2 year out of 5 residence for zero capital gain tax.
With the above your “High” interest rate becomes a cheap short term loan rate. Your negative cashflow is a short term issue, especially if it offsetting your housing costs.
Thank you for responding, I appreciate the tips and ideas.
Post: Am I doing it wrong or just not seeing the big picture?
- Minneapolis, MN
- Posts 9
- Votes 1
Quote from @Greg Scott:
On a fully-leveraged house hack you can't look at the deal the same as a normal investment.
If you would normally pay $1,000 per month for rent, but by doing a househack, you have negative $500 per month cashflow, you are still ahead of the game. You've basically cut your housing cost in half, plus get some tax deductions and have an asset that will grow in value over the long run.
Of course, you need to factor in potential vacancy, repairs, etc into that cashflow calculation.
Thank you for your response, I still need to educated myself on tax deductions and appreciation and how much it will benefit me. I factored in vacancy, cap ex, maintenance, and utilities. I'll be self-managing so I didn't factor in property management.
Post: Am I doing it wrong or just not seeing the big picture?
- Minneapolis, MN
- Posts 9
- Votes 1
Quote from @Caleb Brown:
Are you running numbers while you occupy or when it's vacant? If numbers show negative as you live in it that is going to happen on any deal. The whole point of a house hack is to get into a 2-4 unit with low or no DP and reduce your living expenses. This helps you save and snowball into another. When you move out you will want to run numbers to see what that would come out to.
Thank you for your response, I'm calculating properties as fully vacant using seller's current rents and current market rent. I understand I'd be saving and snowballing into another property, but I'm worried about zero cash flow after moving out.
Post: Am I doing it wrong or just not seeing the big picture?
- Minneapolis, MN
- Posts 9
- Votes 1
First home buyer with VA loan with no money down. I'm looking to house hack a small multi-family. High interest rates and property tax has been killing a lot of deals. It seems the only way to cash flow in this market is to put a down payment. All properties I've looked at has negative or no cash flow.
Am I not being creative enough or is the market just tough right now?
Post: Newbie with questions - Minneapolis, MN
- Minneapolis, MN
- Posts 9
- Votes 1
Thank you everyone for welcoming me and for your advice.
Post: Newbie with questions - Minneapolis, MN
- Minneapolis, MN
- Posts 9
- Votes 1
@Hannah Krebs I would love to meet/talk with you! I will contact you after this week to discuss.
Post: Newbie with questions - Minneapolis, MN
- Minneapolis, MN
- Posts 9
- Votes 1
@George Blower Thank you, I've come to learn that too!
Post: Newbie with questions - Minneapolis, MN
- Minneapolis, MN
- Posts 9
- Votes 1
@Tim Swierczek Thank you for the advice, I would love to meet up and talk about this more. How can I get a reach of you to schedule a time?
Post: Newbie with questions - Minneapolis, MN
- Minneapolis, MN
- Posts 9
- Votes 1
Hello Bigger Pockets community,
This is my first post on Bigger Pockets so here is my story and I also would like to some tips or advice on my current situation.
I'm 25 years old and currently a student who will be graduating in two years with my bachelors degree. Coming from a poor family, the idea of financial freedom and real estate investing has never came out of the mouths of my family. I only found out about the possibility of financial freedom through a multi-level marketing company presentation. I never really got going in the company but then bumped into our guy Tai Lopez online and found his recommended books. Out of those recommended books, the first book I saw while walking through Barnes and Noble was Rich Dad Poor Dad by Robert Kiyosaki! This book got me on the path of REI and here I am.
Right now I don't make much money working part time and I'm currently living with my parents in my brother's house. My brother wants me to take over the house title so he can buy a new house for his family. My plan was to save as much as I can and look for a small multi-family home to house hack but I don't know what is the best way to go about this.
My Brother's house I'm living in has around $130,000 on the mortgage but is currently valued at around $230,000 right now in a great neighborhood in Brooklyn Park, MN.
My plan to finance a multi-family home was to utilize my VA home loan and put about a 10% down payment. I also need to study a lot more about real estate!
Let me know what you think I should do to get started in REI and thank you spending your time out of your day to read my story!
-Long Thao