All Forum Posts by: Matthew Medcalf

@Michael Noto Thanks for the feedback! 

Do you think it would be worth it to start talking to banks now about FHA loans or wait until I am closer to buying? (Next year)

Thanks for the feedback @Allan Smith! I've read a rule of thumb of 1-3% of property value per year on maintenance ($1,500-$4500 or $125-$300 / mo) for properties. 

I was just curious initially how much I should start out with. $5000 seems like a good amount to start out with and could cover most major household repairs (except maybe a roof) but I'm assuming I would know about that a head of time per a home inspection.

Let's say I buy a property for $150,000

3.5% down puts me at $5250 for a down payment. How much additional should I be looking to save for a safety net for the property (vacancies, repairs, closing fees, ect). I will also need to furnish somewhat since I currently have no furniture as I live at home. 

I have a personal emergency fund but I want to keep this separate than my property fund. I don't want to have the bare minimum saved when I "pull the trigger" on a property. I want some peace of mind in case an unexpected situation occurs. 

Long time no talk everyone! Just an update.. I paid off my student loans Monday and am officially debt free! 

Now that I have no debts holding me down I am starting to search around for a house hack in the West Allis/ Milwaukee area. I will be working off 60th & Good Hope in the near future so I do not want to be too far from there.

I hear you only need a 3.5% down payment on a first time live in multi family unit? 

@Brian Gerlach

So you think aggressively paying off the loans first then house hacking would be the way to go?

@James Murphey

You would say saving for a down payment would be better than aggressively paying off the loans ( paying off in 1 year )

@Luke Greely

Yes house hacking a duplex is what I had in mind.

What I’m trying to decide is should I pay off my student loans before buying a house? Or should I focus on the down payment and make minimum payments while living at home?

@Jack Medford

Glad to hear others have been in my situation. Living at home isn’t bad but being on my own would be preferable.

I’ve been researching into the idea of house hacking and buying a duplex to rent out half.

But I’ve also been contemplating knocking out all 31k in loans in one year then saving for the down payment.

Would paying those off aggressively be worth it? Minimum payment and save the remainder for down payment? Or a mixture of both?

@Luke Greely

I like the idea of owning vs renting. I’ve never been the kind of person to move around a lot.

I’d like to start young and build passive income for the future.

Hello,

I am a new college grad from MIlwaukee Wisconsin looking to get into real estate.

I currently live at home and am starting to research into next steps.

I’m trying to decide if it would be best to live on my own for a bit or use the opportunity of living at home to save for a down payment.

My financial situation looks like:

Salary: 70 K

Debt: Student loan 31K 4.5 % interest

Emergency fund: 16 K

401K: 10K

Any advice would be appreciated!