All Forum Posts by: Nicholas L.

Hi @Blake Hornbrook I agree with @Roni E. about doing your homework. In fact, I'd focus on saving rather than putting $1K or $2K or $5K into a fund. It could double, or you could lose all of it. Put whatever you have into a savings account (it's not much, better it's better than nothing.) Have you looked into FHA or VA loans? Those can let you get started with a purchase with very little down.

@Tyre Carmon if you buy a duplex, you could live in one unit and rent out the other.  You could even rent a room in your own unit on top of that.  You just have to live somewhere in the property =)

Hi @Tyre Carmon I think as long as you yourself live there, you could rent a room out right away.  The occupancy rule is going to apply to renting out the whole unit.

Hi @Blake Hornbrook I think the answer is... it depends.  When you say you're not looking to purchase, are you planning on investing with someone else who is?

Hi @Tyre Carmon if you're going to live in the property, there are more options for you than if you aren't. I would start talking to multiple lenders to see what types of loans and programs you qualify for - FHA, any programs specific to your area, etc. You can ask for a loan work-up for you so you can see how much it would cost you each month even if you don't have a specific property picked out yet.

You can also talk to a real estate agent and explain your goals and financial situation, and they can help you with financing recommendations as well.  

Finally, check out any threads you can find in the BP forums on house hacking, FHA loans, FHA loans with house hacking, etc. Good luck and let us know if you have more questions.

@Chip Marchand

in order of most real estate-y to FI to general business:

• Buy, Rehab, Rent, Refinance, Repeat by David Greene (RE)
  Real Estate Investing Gone Bad by Phil Pustejovsky (RE)
• Investing in Real Estate by Gary Eldred (RE)
• Quit Like a Millionaire by Kristy Shen (FI)
  
• Playing with FIRE by Scott Rieckens (FI)
• I Will Teach You to be Rich by Ramit Sethi (FI)
  The One Thing by Gary Keller
  
• Am I Being Too Subtle by Sam Zell
  
• Shoe Dog by Phil Knight
• The Big Short by Michael Lewis

@Nicholas Aiola okay, I really tried searching the forums and the Internets on this one and couldn't find guidance.  Here is my question: I manage a property my brother owns (I am not on the deed, not on the mortgage, and have no ownership interest).  It's a gentleman's agreement. We split the rent 50/50 and the expenses 50/50, and I perform all property management functions.  I assuming that when we do our taxes, he should file his portion of the income and the expenses, I should file my portion, and he will claim 100% of eligible depreciation.  Is that accurate?  Thanks for anything you can share.

@Daniel Lopez a few things:

1 - you mentioned selling your condo to get the equity, but selling a property is typically expensive due to the need to spruce it up to prepare for the sale, pay an agent, pay closing costs, etc.  You don't get the sale price!  Have you run the numbers at a few different sale prices to determine exactly how much the actual proceeds to you would be?

2 - you mention you don't believe you can qualify for a mortgage. Even if you successfully BRRRR a property, qualifying for the re-fi is similar to qualifying for a mortgage. So if you don't qualify for a mortgage now there is no guarantee you'd qualify for a re-fi. I strongly recommend working on repairing your credit now.

3 - remote investing is possible, and finding a property in the price range you mentioned is possible, but doing BOTH on the SAME TRANSACTION is daunting because you're going to be buying in lower-rated neighborhoods if you're trying to be all-in for $50K - higher turnover, higher expenses, etc.  I would not recommend doing this on your first deal.  I'm hoping other BP-ers will chime in on this specific item ($20K properties).

4 - I like @Kody Crouch's suggestion to house-hack in Colorado.  Even if you have to wait while you repair your credit, you don't want to cannibalize the hard-earned equity in your condo via a sale.  Just because prices continue to go up doesn't mean you won't be able to find a good deal later this year if you're patient.

Hope this helps.

Hi @Tyler Pearson I think compared to markets like SF, NYC, DC prices in Phoenix are still reasonable.  Now, you have to evaluate each deal on its own merits, but when I look at Phoenix compared to DC, I'm still absolutely amazed by what your Phoenix dollar can buy.  And, Arizona generally has been and remains one of the fastest growing states in the US.

Finally, renting can be a good deal.  While I agree with @Pamela Sandberg that buying is generally better, renting for a short period for a specific reason is fine.  You don't pay closing costs when you move into or out of a rental =)

Hi @Rachel Locklair can you explain a little more about your question?  You should not try to buy an investment property and classify it to a lender as your primary residence; that is asking for trouble.