All Forum Posts by: Nicholas L.

@Nick Brown I think this is a good goal and a reasonable one.  With that said, it's also potentially many units, depending on how much cash you put into each, how you finance them, how much they individually cash flow, etc.  You asked what you need to be mindful of as you're shopping for your first property.  Here's a question - how much cash will you be putting in and how much will you have left after you purchase it?

@Sam DeZeeuw that's basically correct.  The issue is... having the cash to do it all, and also being able to find a property that will appraise high enough for the BRRRR process to work, which is tougher (but not impossible) in today's market.

The upside of househacking a small multi-family is that you can acquire a primary residence and a rental with often a very low down-payment. If you house hack a property with a low down payment, and BRRRR a property that doesn't appraise high enough... you may end up with the same amount of cash "left in the deal."  Do the math and you'll see =)  

The key is cash preservation!

@Joy Hughey just checking... are you missing some zeros or are you really rehabbing the BR for $50?

@Maddy C. I think this is a great goal and a reasonable timeframe!  If you draw that 1.5 hour circle around NYC, you will have lots of submarkets to consider.  I'd add Fairfield County, CT to your list.  It's expensive... but duplexes in Stamford and Norwalk (needing work!) occasionally come up in that price range.  Are you working with an agent yet?  No reason not to start looking at properties now.  Good luck.

@Sam DeZeeuw $61K is probably not enough to BRRRR all in cash unless the target property is in a very tough neighborhood. Can you house hack a property that needs a lighter rehab? You'd have enough for a down payment + repairs in cash with $61K, in a higher quality neighborhood. I'd leave the $28K alone.

@Joy Hughey congratulations on taking action, but it's not clear that this is a BRRRR. And it seems like you're still trying to estimate the rehab cost - is that correct?

Say, for example, you spend $80K to purchase, $3K in closing costs, $2K in holding costs, and $25K in rehab - that's $110K into the deal.  If it appraises at $107K, you'll probably only be able to take out $75-80K in cash... - leaving $30K plus in the deal. That doesn't mean it's a bad deal if it's a great rental... it's just not a BRRRR.

@Auryana Faramarzi how much are you putting down and how are you financing?  It seems like this will tie up a lot of your cash without cash flowing.

@Alex Goon I'd keep working and saving, and house hack whenever you have enough saved up for a down payment, reserves and emergency cash.

@Alex Goon do you have any cash in addition to your stocks?

@Matt Fisher just a sanity check - will this property cash flow? If you're keeping it as a rental, the ARV is irrelevant. What is the projected monthly rent and what are the projected monthly expenses?