All Forum Posts by: Nicholas L.

If you don't own any property yet, you're in a perfect position to house hack.

@Breanna Green

a few quick reactions

-are you going to meetups and networking with other investors?  I would try doing that if you're not already.  you might need to try a few different ones until you find the right peer group.  

-i think tax questions should go to a professional.  do you have a CPA already that could help you with the various tax implications of your various options?

-are you based in DC?  or somewhere else?

Hello - that will not work in 99.9999999999999999999999999999999999% of cases

Can you house hack instead?

Good luck

@Jesse Hubble

I think you have to make that determination yourself.  Anyone else's financial situation and real estate portfolio are going to be very different from yours.  Just because we leave X% or Y$ in a deal doesn't mean that would make any sense for you.

I give you kudos though for figuring out how aggressive you have to be for a BRRRR to work. It's very, very difficult to find them right now, even off market. There is such demand for BRRRR-able inventory that it's resulted in 'bidding wars' among investors just like for on-market properties.

@Runbang Tang

zero - zero cash flow anywhere in the first few years on an LTR.

@Frank Wei

anything that is going to generate "cash flow up front" is going to be more of a hands-on / more time-consuming or niche strategy - flipping, STRs, MTRs, etc.  unless, of course, you simply buy an LTR in all cash, without leverage.  but if that is the case, your cash on cash return may be lower.

i just always get nervous when folks with busy 9-5s come on BP wanting "cash flow." that often results in them buying a deal in a random, supposedly "low cost" market that looks good on paper, and then starts losing money in month 1.  here's an example:

Sell at a loss or rent at a loss

not trying to be discouraging, just realistic.  the market is really tough right now - high rates, busy contractors and PMs, tremendous demand for deals among investors.  LTRs are still a great investment... they're just very, very long term and may not truly "cash flow" for 10+ years, depending on how you measure it.

@Lara Gott

if you are truly interested in buying OOS, i'd strongly encourage you to go to your chosen market in person, ideally multiple times, and build a team and look at properties in person before you try to buy anything.  the market is tough right now, and if you try to do everything from you're computer, you're likely to buy a lemon and lose money.  and if you can't or don't have time to go there in person... i'd reconsider investing OOS.

not trying to be discouraging - just realistic.  see these threads.

tenants breaking leases and excessive damage make it hard to be profitable

Memphis Turnkey Tenant Turnover Costs

Sell at a loss or rent at a loss

https://www.biggerpockets.com/forums/963/topics/1195280-expe...

https://www.biggerpockets.com/forums/48/topics/1160450-run-i...

https://www.biggerpockets.com/forums/48/topics/1137397-balti...

https://www.biggerpockets.com/forums/52/topics/1010977-12-00...

@Sasanka Garapati

no offense intended but... i don't think there's any way for anyone on BP to advise you, since we just don't have very much information here.

can you try to find a local investor?  or talk to your agent?

good luck

@Isaac Pyle

OK, more reactions to what you wrote - can't resist.

-unless you want to be a realtor, no need to get your license.  i would just put all your effort and energy into your full time job and maximizing your W2 income.  getting your license just to represent yourself on a very occasional transaction is difficult to do and generally not worth it.

-if your lease is up in a year, and you even want to think about a house hack, you need to start looking at properties 3-6 months out from when you would move.  you're not going to buy the first property you see, and then after you make an offer, closing can take 45-60 days, depending on the seller's timeframe.  if you want more information about how long things are taking talk to some local agents.  and if you want to know more about lending available to you talk to some lenders.

again, not telling you definitely to house hack where you are - you have to make that decision for yourself.  just telling you that IF you want to do so, 2 weeks or even a month before your lease is up is not when you would want to start looking.

@Isaac Pyle

really thoughtful post! a few miscellaneous thoughts.

-putting yourself and your SO in a strong financial position is valuable even if you have to continue to wait to buy RE.  i think the median savings amount at age 25 in the US is probably very low, so if you have a good amount in savings already (or are able to start right now) you're still getting ahead.

-you might have enough time to house hack in KY, but only you can make that decision and decide whether it makes sense for you and your SO.  and, you don't have to time it so perfectly that your lease is up on April 30 and you move into your house hack on May 1.  Maybe they overlap by a couple months.  so what?  if the house hack is a great deal and a good fit, then the rent is just part of the cost of getting in.  but again, only you can make that decision for yourself. 

-buying a bad deal will just set you back.  there are so many forum posts from people who wanted 'a deal,' bought something just to buy, and lost money.  here's just a few.

Sell at a loss or rent at a loss

$12,000 Turnover!! Is this normal for less than 3 year tenant.

tenants breaking leases and excessive damage make it hard to be profitable

hope this helps