All Forum Posts by: Steve T.

@Drew Sygit thank you for the very thorough response. Great point on STR/MTR to possibly cash flow in a high-appreciation low-cash-flow market like Los Angeles. I had a few questions.

For the FHA loan, if I am able to afford the 20% down from the get-go, is there an advantage to doing FHA instead of conventional financing? The interests rate seem comparable. If I pay the 3.5%, I need less initial cash, but pay for it with high higher monthly payments eg PMI. Is the goal here to increase leverage so I have more cash available for out of state investing?

For FHA 203k renovation loan: if the house is unlivable, it does not qualify for conventional financing with a mortgage. In this case, I would need to find some private lender that does unconventional financing (higher interest rate) or I could use an FHA 203k loan. Is that the main advantage of this to get a lower interest rate for the FHA 203k loan? If I can pay the repairs with cash any reason not to do that?

For refi the property after 20% equity to avoid PMI, related to first question, if I could avoid this from the get-go, any reason to delay it?

Low downpayment & lease to own are interesting ideas, would those be applicable to the first house hack (ie a separate option from the FHA 203(K) loan)?

For refinancing and switching to 5+ units, would you suggest this in a low-cash-flow high appreciation market (e.g., LA) because of economies of scale the building may cash flow? Or if you are thinking out of state, depending on the area, some 5+ units I would already be able to put 20% down.

 Thanks for the reply Michael. I was planning to buy a distressed property and build equity in it with repairs/rehab, rather than pay top dollar for a turn key. Do you think as a first time OOS investor I should look for turnkey deals instead?

New to REI & BP, and debating my first move.

My Background:

• 30, single, no kids, no property, high income, fully remote worker
• $300K to allocate toward real estate (+ $100K/year after tax)
• Currently renting in NYC but planning to move back to LA (hometown) in summer 2025 or the following year
• Tired of paying rent and want to start building equity

My Dilemma:

1️⃣ House Hack in NYC – Stay a couple more years here, buy a small multi-family now and offset costs with rental income. Concern: NYC’s strict landlord laws, high purchase price would tie up capital & be in less desirable area, would likely not cash flow (not good when I leave)

2️⃣ House Hack in LA – Move back, get a small multi-unit, and offset my mortgage with rental income. Not expecting cash flow, but at least my housing cost would be similar to renting. Concern: LA’s landlord laws, headaches from self managing, a good deal may still have tenants occupying it, if I ever leave it's an alligator so it costs more than the income it makes

3️⃣ Out-of-State Rental – Get skin in the game sooner by buying a cash-flowing property elsewhere. Would get a property manager. Concern: Remote investing as a beginner, higher risk. (I have read the Long-Distance Real Estate Investor, so have some ideas)

4️⃣ House Hack Anywhere - Due to remote work, I could find a market that has a profitable house hack, get great financing. Just need to spend a year somewhere I may have no desire to live.

Hybrid Plan:

• Keep researching out-of-state markets and act if a great deal appears.
• Move back to LA, live in Airbnbs in to get a feel for neighborhoods (open to suggestions), and house hack once I find a deal.

Would love to hear from those who’ve house-hacked in LA or NYC or started with out-of-state rentals—what would you do in my shoes? 👀