All Forum Posts by: Steven May

Incredible!

What's your portfolio looking like now days?

 Jay, awesome story! Would love to dive deeper into that deal! 

What was the initial purchase price?

How did you decide to go down that route of purchasing land? 

What part of the country was that in? 

Did you make monthly income off of it or just appreciation? 

Congrats and thanks for the input! 

Best resource to learn about using a self directed IRA to REI? I know it has to be hands off but that's all I know. Opened a SDIRA a couple years back.

Did you have your SDIRA in the stock market as well as owning a rental/flip with it? Why not just put down 20% for cash flow that you can manage yourself or save up cash for a BRRRR? Thanks for the advice!

As a millennial and recent college grad and wanting to begin building a portfolio of properties while working a full time job, a question I constantly find myself contemplating is how to plan for an early retirement and build the best ROI on both my money and time.

As for those of you who currently build wealth through real estate in any niche whether it be buy and hold, flips, BRRRRs, commercial, residential and etc. --- How much are you putting away in various accounts to both build a healthy account for retirement, while also actively building your real estate portfolio with cash flow. The work of successful entrepreneurs such as Warren Buffet, Tony Robbins, and other investors commonly suggest putting 10-20% away of W2 income in accounts that compound such as Roth IRAs and company matching 401ks. The work of other great entrepreneurs such as Brandon Turner, and Grant Cardone avoid stocks, ETFs, and participate in REI only.

I agree with both sides of the spectrum and each category has its pros vs cons. As for moving through my late 20s, and into my 30s and beyond. I want to put my money to work for me in the best possible position to allow for the option to be able to passively collect income such as cash flowing real estate and also having a significant tax advantage retirement fund to rely on later in life that will compound through avenues such as ETFs that are diversified in different sectors and the S&P 500 index. 

For those of you, no matter what age frame you fall in:

(lets assume we moderately change our strategies through the years to  account for changes in economic cycles)

-How are you preparing yourself for financial Independence and possibly early retirement? 

-What lessons have you learned that you would tell your 23 year old self? 

-What is your balance of cash vs. equity (assets) vs. retirement fund vs. other investments such as savings/checking accounts? 

-Pay Down Debt/Borrow More?

Thanks for reading and look forward to the feedback!

I am a 23 year old REI in KC, MO. Currently I am house hacking a SFH. I used a conventional 3% down and financed 97% of the purchase. I am looking to build my rental portfolio and would love to obtain a duplex-quadplex. The most ideal route currently would be to use a 5% down FHA to house hack a duplex with my girlfriend while continuing to rent my SFH. A solid duplex that my girlfriend is willing to live in is becoming hard to find so we may just buy a cheap SFH and make the payment ourselves to live in.

Despite the current situation, my lender and bank I work with is great but I know in order to buy a small multi family property I need 25% down and be able to show some reserves in the bank as well. I’m a full time nurse and make decent money, about 23$/hr after taxes. I am frugal and save almost everything but wondering how people scale up while needing 25% down? It would take quite a bit of time to fund 25% down and like most people I want to obtain properties now! Haha.

If you have experience putting 25% down, are you saving money up in the account and just being patient for the right deal. Are you investing money in the stock market while waiting? I do not have enough equity to pull a line of credit currently but would like to utilize this strategy in the future. Let me know, thanks!

If you are going the residential route — Samantha Salem, works for Reece Nichols Real Estate Team. 

She’s been great for me with viewing potential house hacking properties as well as investment properties. Also does a great job at communicating with listing and sellers agents and sellers themselves! 

@Monroe M.

If you don’t plan on moving then use the 30k to fund two 75k SFHs that cash flow! 20% down on 75k is 15k x2. Save up cash flow for rehab fund and your next property.

If not that option. Find one duplex that needs a little work. Paint and exterior - some light work. Make sure it cash flows. You may need 25% down for this property!

If you are okay with moving...use a FHA to house hack a duplex. Borrow as much as you can if you go down this route. This property will only need about 3-5% down. You could live for free there if numbers work, rent out your current property, and with only a low down payment on the duplex you could have enough left over for another property! That would be the best way to possibly have about 5 units with your 30k! Duplex + duplex + SFH!

Good luck!

@Mindy Jensen

House hacking is the way to go.

Bought a SFH, 3 bedroom 2 bath at 22 years old. Had 2 buddies who needed a place to live. Charged them significantly less than they were paying in rent at their previous places. I now live completely for free and am building equity every month.

I’m looking to house hack a duplex now with my girlfriend.

Bought the home with a 3% conventional. Going with a FHA for the next property!

Anyone can do it and at any age!

Love the feedback on this thread! 

I currently have one SFH that I house hack. Been in the property 7 months. Looking to owner occupy a duplex. Wondering if anybody knows lenders willing to give a second personal residence loan on a duplex at a lower down payment!

Also I have a cash flowing duplex offer accepted. Needing help funding the 25% down if anyone is looking to partner or earn interest on a private/hard money loan! PM me for details!

Keep hustling KC BP!

@Yonah Weiss

Just recently graduated with my Bachelors of Nursing this past spring. Passed my state boards and am now a Registered Nurse. Turned 23 years old right before graduation.

Purchased my first SFH house hack during my last semester of nursing school. Spent more time educating myself on REI and listening to Bigger Pockets than I did on my nursing studies.

I love the flexibility of my RN position - full time is 3 days a week (12 hour shifts). The other 4 days of the week I can network and analyze deals. If I need more money for a deal there is always a nursing shortage and I can pick up unlimited overtime!

I love my occupation - being able to help others in the healthcare system but I use my W2 income to create long-term, legacy wealth with REI.