All Forum Posts by: Nick Elder

@James Carlson @Christopher O'Brien

I second James’ referral. I’m working with Drew in this as we speak.

I’m moving on to my second house hack in Denver and it’s the single best financial decision I’ve made up until this point in my life. Sounds like a no brainer, however, I’m understanding, from all the responses, that in some cities or counties, there might be restrictions that make it a tad bit more difficult to use this strategy. Obviously, understand what those restrictions are and decide from there.

It’s easy to think about everything that could go wrong. Our brains are wired that way, but try to see all the positives that could result. Certainly, roommate turnover can be a stressor, as can many other things. Granted, It’s not very difficult to find tenants in Denver, however, there are plenty of resources all over the internet that you can use to find roommates. Taking really good photos of your place can make it easier.

House hacking allowed me to save almost 60% of my salary which I’ve been saving to buy more property. Eliminating your largest expense can be a game changer. Set your focus on the big picture and visualize yourself 3 years from now and what your real estate journey might look like. Thats what I did, and house hacking turned out to be the most logical, easiest, and proven- to-be-successful way forward. Best of luck to you!

@Drew Fein thanks so much! Just sent you a message

@Drew Fein Hey Drew! Saw James’ post and it actually spoke to exactly what I’m doing. Moving on to my second house hack and also currently looking for a CPA. Is there a best way for me to get in contact with you?

Took me about a year of saving up to get a downpayment on my first house which I house hacked. 1.5 years later and I closed on my second house, which I will be also house hacking, as well. House hacking is what made it all possible for me to get started, especially living in Denver, where a 3-5% downpayment on a conventional loan is still a considerable amount of money. House hacking also made things easier to manage and really opened my eyes to the power of real estate.

Talk with lenders, real estate agents, and begin planting those seeds for a long lasting relationship. There’s a lot of real world lessons out there that you won’t find in books or on the internet.

My advice is....just jump into it. Of course it’s important to run numbers and research/read books to gain confidence, but I don’t think there really is ever a “right” time. The time is now.

Good luck!

Hi Everyone!

My name is Nick and I am new to Bigger Pockets. I currently live in Denver, and I would love to get your thoughts on lease option/purchasing agreements. I recently became familiar with this term and my brain lit up as i discovered this as a fantastic opportunity to make my entry into real estate investing. I am 25 years old and currently searching within the Denver market. My roommate has begun his journey into real estate investing and now owns his second house in under 13 months.

I would love to pitch him the idea of setting up a lease purchasing agreement with the commitment of buying the place in 2-3 years. It seems to me like a win-win situation. I have researched through benefits and downsides and even with taken the cons into consideration, it seems to like a great deal. I would pay him higher than average rent in addition to a fee to have the right to purchase. We are both great friends and trust each other in entering into an LPA. We would love to do in such a way that it would improve his Debt-to-income ratio, which is a challenge for him at the moment, especially after having acquired this loan on the current $550k home in Denver. There is also a vacant room in the house that will likely be filled within the next month.

The main question is, for those who have been successful in entering into this type of agreement, how could we structure the agreement as such that it would improve his debt-to-income? My initial idea is that I would pay him, say 20-30% above my rent now which is $1,100, and have that 20-30% go toward my future down payment. I would then create my own lease for the 3rd roommate and hopefully have them pay me their portion of the rent which would be higher than what I agreed upon. Again, this is me brainstorming. I am open to any and all advice and feedback!

Thanks everyone!