All Forum Posts by: Nicholas L.

@Ian Motta

start with a house hack. there is no better way to get started.

@Irma Leibas

hello. the market is definitely difficult right now - sellers absolutely want too much for distressed properties.  a lot of them are owned free and clear, so they don't have a mortgage payment and they want top dollar.  so, i very much sympathize with you on that!

with that said... funding type shouldn't be an issue, so i don't think i understand what's happening.  are you putting a financing contingency in your offers?  i've bought both on market and off and i've never had a seller have an issue with where my funds are coming from.

@Matthew Masoud

i think at one point you were changing strategies and moving more toward LTRs - what's the current split in your units among STR, MTR and LTR?

@Steven Le

just to help set expectations - you will not 'cash flow,' period, on any of these options.  your first several years, or even longer, will be INvesting, in which you will be putting money in.  even 'turnkey' properties have kinks that need to be worked out once tenants move in - things that need to be fixed, or a big capex item that comes due.  a roof, a furnace, or even a dishwasher.

prices are high, rates are high, closing costs are high.  if you put a huge chunk of money down, and pay 5-15K in closing costs, and then you make $82 a month, how is that 'cash flow'?  that's my question.

i hope this helps.  just trying, like i said, to set expectations.  so many new investors buy a property and are immediately disappointed when their 'cash flow' expectations are not met.

@Chris Marvel

I can't tell what you're proposing here.  are you saying you'd 'rent' the Airbnb from the owner, and someone else would manage it?  or the owner would manage it? I don't understand what role you're playing, or what value you're adding... so doesn't make any sense to me

Certainly do not give anyone $7K...

let me know what i'm missing 

@Jacob Novotny

can't speak to your realtor - don't know them, and only know what you posted

the goal of a house hack is 1. to offset your housing payment while you're living there, and 2. then break even when you move out.  then you're building equity.  equity building is POWERFUL.  

there just isn't a lot of 'cash flow' in residential real estate right now, on a house hack or any old LTR, with interest rates so high. it's tougher, niche strategies that are going to generate cash flow, or a higher return - STRs or MTRs (more cash flow, potentially); flips (all cash, no equity); the BRRRR method (forced equity, but little to no cash flow.) and then there are many other ways to invest as i am sure you know from reading the books.

sounds like you're doing the right thing by trying to house hack.  i'd cast a wide net and keep looking.  like i said, if you're renting now for $1800, and you could save a little by house hacking, you still house hack.  why?  equity.

did i mention equity?

hope that helps

@Hardik Patel

hi. no need to partner when you're starting out.  too much complexity, not enough reward.

can you both just house hack separately?

good luck

@Menachem Krasnjanski

honestly i don't think anything that isn't some kind of niche 'cash flows' at all right now with interest rates where they are.  i have zero interest in plunking down a huge down payment that i can't get back for years or decades, regardless of whether my return is 0% or 2% or 12%.  that money is tied up and just sitting there.  it looks from your profile like you've purchased distressed assets in the past - that is where the real returns are.

@Jeremy Mumme

i have listened to them too, and i have also purchased properties on seller finance.  with that said:

-their bigger deals that they take investor money for weren't their very first deals, i believe they had done a couple and had a short track record; and

-you still need your own cash, period.  no one is truly borrowing 100%, even when they seller finance.  there could be closing costs, holding costs, etc.

also, seller finance deals are very, very tough to find - it can be a part time job just to find one.

@Menachem Krasnjanski

I'm going to answer your question with a question - what are you looking to accomplish?