All Forum Posts by: Samuel Vogt

@Jared Baker Have you analyzed the properties as if you weren't going to live there yet?  I have a duplex under contract, and what helped me when "running" the numbers was that people suggested to run the numbers two ways. 

As a resident, and living in one half.

If I were to rent both sides as an investment property 

Usually if it makes sense as a strict investment property, then it makes sense for you to live there if it's a desirable neighborhood. Also, have you thought about getting a roommate for your unit? That could be a way for you to possibly cash flow.

@Arifa Khandwalla my situation was completely anecdotal, and I hate to sound semi-pessimistic, so take my post with a grain of salt.

Best of luck to you with your decision!

@Arifa Khandwalla, I agree with @Phil Anderson... Also, without knowing specifics, it's hard to try and answer some of your questions.  What have you dropped your rents to? How long have your units sat vacant in between tenants? The 50k in work, what exactly needs done?

Additionally, I rented in Lawrenceville from 2016-2017 and when I told my landlord that I was moving out he begged me to stay, and even offered to drop the rent by a couple hundred dollars since the other unit in my building sat vacant for 3 months. 

I suspect that you aren't the only owner that has this dilemma.

@Vincent Herrera I do A fixed number at the moment, and it works out to be about 30% of my take home pay as well. 

Hey Vincent... I read the book in October and have been working on maximizing my savings as much as possible.  One struggle that I faced early on is the feeling like I wasn't making much progress. That dissipates after time when the balance starts to creep up.  

Something that I implemented that has also been helpful is the "profit first" method, or the  "rich dad, poor dad" method of paying yourself first. Therefore, as soon as I get any check I move a set amount into my savings account.  This way I have to live on what is left over in my checking. It becomes fun in a sense, because you are forced to consciously think about every expense and see how far you can make a dollar last. Or if you need extra money for something fun (concert, vacation, etc.) you have to get creative and find a way to make extra money. I do some bartending and umpiring on the side.

Of course this all only works if one can be disciplined enough to not touch or dip into their savings account once the money is transferred.

Good luck, and happy savings.

@Anthony Warren Thank you for your service! Let me preface this with the fact that I am NOT an expert. I only have one property so far, but I am in the same boat as you. Searching for a house hack/duplex, and trying to understand how to analyze these properties the correct way.

From what I have read and been told, you should analyze the deal as if you are not living there, and run the numbers that way.

For me, I plan to be in the place long term so I am being a bit more patient than usual as the area is the most important aspect for me.  But I agree with you. I would love to hold out for a deal where the numbers were killer, but I haven't seen anything yet. 

One thing that does help with numbers is if you go the airbnb route. I.e- I plan on fully renting one unit, and then also renting out a second bedroom in my unit to help with the cash flow. Probably not the ideal situation for everyone though.

I am also trying to strategize and come up with some creative ways to find off market deals. 

At any rate, good luck and hope that helps!

@Lucas Stringfield I spent about 3 months trying to find a lender to do a HELOC on my investment property. When I finally found one that said that they do them for investors, they denied me AFTER pulling my credit and having me go through rounds of paperwork. Their explanation was that I was too "New" of a real estate investor. Very frustrating.

I decided to go with a cash out refinance instead, and I am in the process of getting my property appraised.  

Not sure if that helps, but I figured I would share my experience. 

@Robert Myers take my advice with a grain of salt as I am a newbie, but it might take a little digging on the buyers end. I’m guessing to ask some questions as to why someone is selling would be a good start. 

@Lesley Resnick Agree! Thanks for the input everyone!

@Nathan Gesner thanks for the help! About how much are typical agent fees for a seller financing deal? Is it similar to a normal agent commission on a regular deal? I can’t imagine agents would want to take less...