All Forum Posts by: Shane Priest

Hey Alex,

I really appreciate you taking the time to provide me with an informative response. It is encouraging to hear from someone of similar age and background who has already seen success in house hacking/real estate investing. 

I have done some number crunching and analyzing to determine how the deal will work while I'm house hacking and after as a full time rental property, but I will do more as you have stressed its importance.

As I've analyzed the deal my main sources of income are through cash on cash return and loan pay-down, not to mention I'll save money as I won't pay nearly as much as if I rented a place. I know being able to incorporate forced appreciation as you mentioned is very important, but the house is in very good shape with limited opportunity for forced appreciation. Should I let the fact that there may not be much opportunity for forced appreciation hold me back? I know if I could get financing I could look for another place, but that seems as if it is a couple years down the road due to baseball. 

Again, thank you for taking the time to send such a detailed and informative response. 

Hey Joseph! Thank you for your very helpful response. 

I have always valued houses to look for cash on cash return numbers or cap rate. I haven't determined what would be considered "good numbers" for a house hack. Obviously through house hacking I won't be getting the full possible rental income, but my out of pockets expenses would still be several hundred dollars cheaper than if I were to rent an apartment in the Pinellas County area of Florida. 

Also in the future when it is rented fully there is a good cash on cash return. My fear was more on the appreciation side of things due to a higher priced property in a currently booming market. I do plan to hold long term though. 

So how should I value a house hack? Should I run the numbers both as if I was living in the house and renting it full time to make sure both scenarios work? 

Thanks again!  

Hey all. My name is Shane Priest. I'm 25 yrs old currently playing baseball overseas in Europe and Australia while working in Finance. 

To get straight to the point I have a passion for rental property investing as I've watched my father do it his whole life. I have read several rental property books and listened to many podcasts to educate myself and am eager to get started. The problem is my current career path. Playing baseball overseas involves minimal pay and constant relocation every 6 months. At this exact moment I can not qualify for a loan due to the fact that I haven't had the same job for longer than a year so I don't show a steady income stream. 

However, a family member is selling one of their rental properties, and me and my brother are looking to go in 50/50 to place a 20% down payment. This family member offered to do owner financing for us so that we don't have to qualify for a loan. They will also only charge us an interest rate between 2.75-3%. Me and my brother (while I'm not overseas) will also be House Hacking this property to save the cost of renting somewhere else and lowering the monthly mortgage by renting out the master bedroom.

The problem however, is this family member is hopeful to sell this property for high value as appreciation has skyrocketed due to low inventory and people are flooding to move to this area. 

My question is: Do I bite the bullet and pay what I think is a high asking price in order to get my feet wet in rental property investing? Or am I still young enough to keep saving money, and purchase my first rental property when I retire from international baseball in 1-2yrs and get a full time job?

I hope this is enough information. Thank you all in advance for your input!! 

I do have specific cash on cash return numbers and plenty more data if needed.