All Forum Posts by: Nathan Hui
Nathan Hui has started 16 posts and replied 106 times.
Post: House hack vs rent + single family - in a conundrum...
- New to Real Estate
- Rome, GA
- Posts 107
- Votes 34
Originally posted by @Josiah Sia:
Originally posted by @Nathan Hui:
Originally posted by @Josiah Sia:
Originally posted by @Nathan Hui:
@Josiah Sia
Disclaimer: I am a newbie.
I would go with option 1. Unless the home you currently live in has very good appreciation potential I would cash out. If you purchase an owner occupied multifamily with good cash flow potential after you leave then you will have 2-4doors and hopefully a decent amount of cash saved up from liquidating your current house. Also, you should be able to save more cash while house hacking.
I am in a similar scenario the only issue is finding a multifamily that my wife will agree to live in. If we don't find one then I will have to BRRR single families to start out with.
If you had that 15k in hand would you buy you current residence as an investment property? I think your answer to that may help you make a decision. Everybody has different goals and different strategies to achieve their goals.
OMG, Nathan, I am in the exact same boat. I'm not as "caring" I guess as to where I live and my focus is just on the end goal and how to get there the fastest. I'm trying to find a multifamily my wife will agree to live in as well. I found a nice 4 bed 2 bath but I think I might need to do a bit more convincing for the house hacking life style.
If she decides against it so be it. I'll go the BRRR single families route too :)
That's a very good question to ask. The area that I'm in is growing and value of houses are definitely going up. But based off of Zillow and Rentometer the average rental of houses in this area is about $200 below what my mortgage is. I don't think I'd be able to rent my current house for positive cash flow
I’m surprised you can’t generate enough rental income to cover your Morgage. I think it will be a liability over time if that’s the case.
Is the 4br 2ba multifamily or sf?
I would only be able to generate about $1500 based on rentometer. The mortgage for the place is $1600 :/ It's a 4br 2ba sf house in a nice subdivision.
I see, sounds like a nice setup. I don’t know if you are in an expensive market but reducing personal living expenses (if possible) may help for long term success. I think most successful investors who start with very little have to find ways to live well below their means.
Post: House hack vs rent + single family - in a conundrum...
- New to Real Estate
- Rome, GA
- Posts 107
- Votes 34
Originally posted by @Josiah Sia:
Originally posted by @Nathan Hui:
@Josiah Sia
Disclaimer: I am a newbie.
I would go with option 1. Unless the home you currently live in has very good appreciation potential I would cash out. If you purchase an owner occupied multifamily with good cash flow potential after you leave then you will have 2-4doors and hopefully a decent amount of cash saved up from liquidating your current house. Also, you should be able to save more cash while house hacking.
I am in a similar scenario the only issue is finding a multifamily that my wife will agree to live in. If we don't find one then I will have to BRRR single families to start out with.
If you had that 15k in hand would you buy you current residence as an investment property? I think your answer to that may help you make a decision. Everybody has different goals and different strategies to achieve their goals.
OMG, Nathan, I am in the exact same boat. I'm not as "caring" I guess as to where I live and my focus is just on the end goal and how to get there the fastest. I'm trying to find a multifamily my wife will agree to live in as well. I found a nice 4 bed 2 bath but I think I might need to do a bit more convincing for the house hacking life style.
If she decides against it so be it. I'll go the BRRR single families route too :)
That's a very good question to ask. The area that I'm in is growing and value of houses are definitely going up. But based off of Zillow and Rentometer the average rental of houses in this area is about $200 below what my mortgage is. I don't think I'd be able to rent my current house for positive cash flow
I’m surprised you can’t generate enough rental income to cover your Morgage. I think it will be a liability over time if that’s the case.
Is the 4br 2ba multifamily or sf?
Post: House hack vs rent + single family - in a conundrum...
- New to Real Estate
- Rome, GA
- Posts 107
- Votes 34
@Josiah Sia
Disclaimer: I am a newbie.
I would go with option 1. Unless the home you currently live in has very good appreciation potential I would cash out. If you purchase an owner occupied multifamily with good cash flow potential after you leave then you will have 2-4doors and hopefully a decent amount of cash saved up from liquidating your current house. Also, you should be able to save more cash while house hacking.
I am in a similar scenario the only issue is finding a multifamily that my wife will agree to live in. If we don't find one then I will have to BRRR single families to start out with.
If you had that 15k in hand would you buy you current residence as an investment property? I think your answer to that may help you make a decision. Everybody has different goals and different strategies to achieve their goals.
Post: What is your cutoff for cash flow/door?
- New to Real Estate
- Rome, GA
- Posts 107
- Votes 34
Originally posted by @Cody Ruff:
@Nathan Hui I go with the Brandon Turner numbers which is 100 dollars per cash flow per unit for a rental unit and 200 dollars of cash flow per month for a rental residential property. Those are bare minimum numbers for a cheap house definitely be looking for more if the house is more expensive
I like it! Seems appropriate, I haven't seen anybody go lower so far.
Post: What is your cutoff for cash flow/door?
- New to Real Estate
- Rome, GA
- Posts 107
- Votes 34
Originally posted by @Jonathan Beckett:
@Tim Simmons when you reference “ b property “....... is there a particular rating system that you come up with a,b,c etc?
I am interested to know also.
Post: What is your cutoff for cash flow/door?
- New to Real Estate
- Rome, GA
- Posts 107
- Votes 34
Originally posted by @Brie Schmidt:
I think this metric is totally irrelevant. Is your acquisition $50k per dorr or $200k per door? That will drastically affect your answer. I look at cap rate and cash on cash as my defining metrics
Wouldn't you say you still are calculating CF on each deal? I do realize CF is an incomplete part of deal analysis but you can't even determine your COCROI without it...
Post: What is your cutoff for cash flow/door?
- New to Real Estate
- Rome, GA
- Posts 107
- Votes 34
@Toan Hoang I agree both CF + Appreciation is ideal. Even though there is no consensus on CF numbers I am still learning a lot from hearing each investor’s strategies, how they calculate their numbers, and what their goals are. I was hoping for more of poll type thread, but I do now realize that CF is calculated differently amongst investors. Also, I realize CF does not represent their entire investment’s earning potential and in some cases CF has little to do with a solid investment.
Post: What is your cutoff for cash flow/door?
- New to Real Estate
- Rome, GA
- Posts 107
- Votes 34
Originally posted by @Mark Fries:
@Jay Hinrichs
BP actually reached out to me a couple months ago and asked me a bunch of preliminary questions and they wanted me to do a Podcast but then I never heard back from them. It's all good, I figured there must be a reason. Sometimes I think I'm too much of a realistic investor or too much of a straight shooter and it might not make for a good Podcast because I'm that way?
But in the mean time if I can help anybody actually make money in this business and show them the right way to do it I will be more than happy to do that!
Mark, you do property management in class C. You can count on me reaching out to you for everything PM when I get closer to closing on my first deal. You know any literature I should check out?
Post: What is your cutoff for cash flow/door?
- New to Real Estate
- Rome, GA
- Posts 107
- Votes 34
@Ishmael Carter I think most people use the 50% rule to quickly analyze properties’ CF potential. I don’t think people are using that rule of thumb for their final analysis but I could be wrong.
Post: What is your cutoff for cash flow/door?
- New to Real Estate
- Rome, GA
- Posts 107
- Votes 34
Originally posted by @Alexander Ball:
Sorry, meant 1500 a year. It’s for fees like trash, Unit licenses, business licenses, lease renewal from property’s management, etc.
I figured that was the case. Thanks for your numbers, everyone's deal examples and perspectives help me a lot!