All Forum Posts by: Mike Hottinga

@Jeremiah Dye I will give you my experience as a newer investor. I live in the AZ desert where it is 115 on average in the summer month, I don't wear suit and tie often in the summer. I usually wear a clean/wrinkle free button up, clean/wrinkle free shorts, and clean shoes. I notice the small attention to detail more so that the overall look.

Besides dress attire, I have a hard time getting people to take me serious when I talk about buying a property. I am 28 and the typical 28 year old here is broke and not well put together financially. Most "successful" people in my area are much older than myself, mostly retirees from other states with lots of retirement money to deal with. I just had a meeting with a PM and associate broker and I got the feeling that as soon as they saw me they thought I was wasting their time because I am younger. I took a few hours to make a finances report book to show them my account balances and have proof I have money to make something happen and I am not a waste of time. It includes income/expenses for my SFR I own, personal expenses/savings, net worth, account balances, blank lease with all my addendums, and example deal analysis. I figure they will take me a bit more serious and feel more confident dealing with me with this "proof" of knowledge and financial means. Ill keep you posted on how my next meeting goes with my "proof" packet.

You could also put that 210K in a REIT of your choice or VGSLX and be 100% passive, since you did mention passive income.

Index funds. Not being an accredited investor yet, it is pretty much limited to stocks or general real estate. My city is a really hot small market so I have just been buying index funds to put my cash some where.

I have to give this one to my father who always asked me for help when working around the house or on his 4-plex. It taught me to figure out how to complete a task with the supplies available. I can also do any maintenance task on a house now while my friends can barely hang pictures in their apartment.

I changed my perspective of money and my reason to invest in anything. Money is a tool for opportunity.

I was making 70K a year with very minimal expenses and still was pay check to pay check. I had an off road truck project that I spent years and thousands of dollars in parts/tools that just sat on the floor in my spare room. At this point I was 27 yrs old with only 35k saved for a down payment for a house after 7 years of making decent money. I sold the truck and all the parts and went to seeking how to learn without sitting in a class room and what to do with my income.

Rich Dad Poor Dad lead to BiggerPockets which lead to Mr Money Mustache which lead to Choose FI etc etc.

Now 28 yrs old I bought a SFH and rent out 2 room which covers 80% of the mortgage and expenses. I track all expenses in Excel, cut my expenses as thin as possible, and think of purchases as what value it will add to my life. I now have a 50-60% savings rate that I put into index funds until I have enough to do another RE deal. I am actively looking for my next opportunity locally (2-4 unit house hack) and even the Phoenix area. I now seek to surround myself with like minded individuals that want to improve their lives instead of my old friends that just wanted to go to the bar and drink every night.

Great thread by the way!! I have also not achieved success IMO, I am very much just beginning to work on it!

Side Hustle show 269 with Natalie Eckdahl talks about how to set up and sell a paid Mastermind Group. It has some insights to the different levels of groups for customers at different levels. I know in my local circle of friends and city I struggle to find anyone my age with any hint of ambition to do anything but go through life. I am small time compared to someone that would be considered for a mastermind group, but you have to work with what you have even if that means you are the smartest person in the room for a long time. Good luck.

I bought my first SFR and renting two rooms. My one year primary residence clause is up next month and actively looking for my next house hack, 2-4 unit. My dad owned a 4plex growing up and I have actively been investing for two years now

Clarity on taxes pertaining to house hacking would be nice. My tax lady has not inspired me with confidence this year on my taxes. I have a 3/3 SFH and rent 2 bedrooms out. 1075 is roommate rental income and mortgage is 1250.

I plan to buy a duplex or fourplex this year as my next house hack and do it a few more times before I look to small commercial multifamilys.

I am in a similar situation as you in that I am looking for a 2-4 unit property in my city to house hack, but I would be more than willing to buy a commercial level property like 4 duplexes. The way I see it commercial deals are easier to buy and less headache, 1 deal vs 4-6. I also like how commercial deals are based off of property income, not on the duplex around the corner (comps) that someone paid to much for and is banking on appreciation. 

The real question is what is your personal end goal in all of this? Is it to own 25+ units to quit your job this year or is it to build mostly passive income in addition to your job for the next few years and have 10 units in 5-10 years? IMO there is no right for wrong answer, it is what ever you feel comfortable with. If I were you, I would build a relationship with a commercial lender and have this option in your tool box if an opportunity arises.

Conventional: 2+4+2+4=12

Commercial: 8+4=12 or 12=12

BTW podcast 250 was awesome for the reason you stated, thanks BP!