All Forum Posts by: Nick Pacheco

Nick, the first step is to speak with a lender who has other products than FHA. There are 3% down payment first mortgages where the lender pays all the closing costs through their First Time Home Buyer Program. You'll need to have solid credit and qualify with your student debt included. There are also Down Payment Assistance Programs that also reduce the amount of cash required to close. But - in any scenario - you will also want to skip the part about renting out rooms...that potential income will not be included in the calculation and will not be perceived well.

If you do decide to rent out rooms, you're going to need to know Landlord/Tenant law, have rental contracts, and require tenants to have renter's insurance with added coverage. You may need to check city ordinances to see if you have to register the property as a "legal rental." I'm not a fan of "room rentals" for a host of what can and will most definitely go wrong but here's a fact you should know:

The median net worth of an American homeowner is $231,400, according to the Federal Reserve. That is more than 44 times the median net worth of renters, which is $5,200. The median net worth of homeowners surged by an inflation-adjusted 15 percent from 2013 to 2016, according to the Fed, while renters actually became poorer over that time.

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I currently have zero experience with property management and I am interest to start. It would be ideal to do so that 1. I can learn and acquire more of a knowledge base and 2. Make extra cash to invest with. (Ideal to start with SFH).

What tasks could I do as a new property manager/getting my foot in the door to be a useful and valuable asset to RE investors?

What do RE investors look for in a property manager?

Further thoughts are much appreciated.

Nick

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@Bianca Navalta That is fantastic, you have a really good head on your shoulders! I am new to RE investing too. Perhaps we could connect to help one another in the near future!

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@Russell Redford Hey, I’m new to RE investing as well. My significant other is also quite skeptical. I’ve learned to not “force the information” into their head, take a different approach and make your significant other interested by showing realistic examples NOT social media too good to be true trends. I’m in the same boat.

Also, read intro to real estate investment books. Look on amazon or go to Barnes n Noble.

Let’s connect.

Nick

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I have $60K in student loan debt. I am interested in purchasing an investment property (I will live there) while renting out the extra rooms. After a year or more, I will move and rent all of the rooms out.

Smart move, yes or no? What is preferred for a first time investor? FHA loan, 20% down, high LTV, lower LTV? Etc.

Any further thoughts are appreciated.

Thanks,

Nick

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@Kiera Underwood Wow that’s informative! Great response!

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Greg, thanks for the reply. I like your optimism and advice!

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I currently owe ~$60,000 in student loan debt at an average interest rate of 5.7%. Would you recommend that I save for a downpayment on an investment property (owner-occupied, FHA 3.5% or 20% down conventional loan) and pay the minimum loan requirement? Alternatively, should I pay off all student loan debt before purchasing my first property?

I am leaning towards paying some principle + interest for my student loan each month, but saving for 3.5% down-- living in the house and renting out extra rooms.

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All Forum Posts by: Nick Pacheco

Nick Pacheco has started 7 posts and replied 18 times.

Post: Smart to buy (owner occupied) with student debt?

Post: Possible to make extra $ by being involved in prop. management?

Post: New Investors from Houston, Texas

Post: Sceptical Wife, Who Asked for Reassurance Before Investing

Post: Smart to buy (owner occupied) with student debt?

Post: Recent College grad, interesting in how to get started

Post: Pay off all student loan debt before buying investment property?

Post: Pay off all student loan debt before buying investment property?