All Forum Posts by: Louise A.

@Pauline Misiak

Hey!  Live in flips are a great strategy if you don't mind the stress of living in a construction zone.  Just remember that your profits up to $250K (single person) are tax free if you live there for 2 years.  Anything under 2 years and the profits will be taxed as ordinary income.  Still a fantastic plan!  

@John M.

Hey! We do still own the 4-plex. The first property we bought was a condo, and while we were living in that we put a HELOC on it (owner occupied 97% LTV) and used that as a down payment on the duplex. The 4-plex we had to buy cash because there was serious roof leaks and the bank wouldn't loan on it. If you're interested in house hacking and are tight on cash, the best way is to use an FHA loan with 3.5% down (again owner occupied). What are your plans at the moment?

@Jake Stimmel

Hey!  I would definitely stick to the duplexes in the B areas for $80-100K.  What would your rents be on those? The other properties will cash flow more, but you work hard for your money.  If you're just getting started out, its smarter to stick to better properties in better locations if you can afford to.  Then you'll invest for the long haul and not hate your first property and never buy again!  What are you thinking?

@Jennifer Nguyen

2-4 units in Indy are great if you stick to good areas.  I'm happy to advise on locations if you'd like.  As a guide, you might want to stay away from anything in dark green locations:

http://www.trulia.com/local/irvington-indianapolis...

There are some good blocks in the dark green areas, but you'll be safer in lighter green and doing very well in yellow.  

@Ty Monroe

Hey!  That's great news!  I don't know anything about Lafayette.  Purdue is there, right?  Seems like if you could buy close to the university, you could either do a duplex or a house and rent rooms in it to students.  How are the prices up there?  Any properties you like?  

@Aryelle Collins

My husband and I didn't start our real estate investing in house hacking, we started in a condo that we fixed up and lost $25K on in 2012 (not a good time to sell!).  After we got out of the condo, we lived in a 4-plex for 3 years, and now live in a duplex.  We've lived for free for 4 years through house hacking.  

I would start with an FHA loan if you don't have 25% down. For the first few years, we bought everything off the MLS with an agent.

Any other specific questions I can answer?

Good luck!  

@John M.

I'm in Indy, and haven't house hacked in New Jersey, but I think the strategy works the same anywhere!     My husband and I lived in a 4-plex we own and now live in a duplex.  Living for free is a beautiful thing and its a great way to get into real estate investing.  Do you have any specific questions? 

@Sam G.

Definitely a vote for the HELOC. I have them so that I can use them like piggy banks. The only real issue is that interest rates are going to go up at some point, and those HELOC rates are floating. If you take the $20K with the refi now, you can lock in that low interest rate for 30 years. I think its personal preference based on your situation and what your short term goals are. Good luck!

@Jake Stimmel

House hacking!  I'm definitely a big fan of the strategy.  My husband and I moved into a 4-plex we own when I took a 32% pay cut.  Right now we're living in half a duplex for free with tenants beside us.  Its a  fantastic way to build wealth, either by building a real estate portfolio, or through living for free and investing your extra money.  Let me know if you have specific questions or are looking at properties and need help with the numbers.  Good luck!  

@Jennifer Nguyen

Are you looking for 2-4 units, or apartment buildings?