All Forum Posts by: Ty Ash

Hi @Gene Riggins!

You've come to the right place for advice! Lot's of good recommendations already but here are my thoughts.

1) Start with the end in mind (already mentioned). What would your ideal investment mix look like in 10 years?

2) If you're not tied to this home with the equity, lean towards selling it and capitalizing on your tax advantages of having lived their for your primary residence at least 2 of the last 5 years. This home probably isn't optimized to be a rental compared to other areas in your market.

3) Find a more optimal rental property (potentially explore house hacking to take advantage of lower % down options). You don't need to stay here for the long term but will allow you to get more units faster.

4) If you go the house hacking route, you may use the balance of your proceeds to buy an additional property as a conventional long term or short term rental.

I've found the BiggerPockets Money Podcast super helpful to build a thought process around your finances in total as opposed to just real estate in a vacuum.

Best of luck and keep us posted on your journey!

Hi @Ryan Holyn!

You've come to the right place! I expect that you're going to get a lot of advice soon.

First, I'd recommend that you keep/start learning! Podcasts, Books, and Mentors you find by networking.

Second, I'd pick up a copy of Set for Life by Scott Trench as it has a good framework for financial independence, especially for a newer investor. Real Estate is just a part of your total financial picture so don't become too focused on just real estate (seems like you're starting with a good balance so far). You'll want to learn more ways to increase your income now and in the future, keep your expenses low, and take the difference to invest into assets, real estate/business.

As you already mentioned above, a house hack will probably be one of the best strategies for you to get started and take action while giving you a great return because of the low % down needed to get started (As low as 3.5% using FHA). Once you get to this point, make sure to run your numbers for both while living in the house hack (lowering your living expense to less than what it would be to rent in your area) and post move out where you need to be at least break even after accounting for your monthly payment + maintenance, capex, vacancy, property management.

This is where I think you're maybe missing a step using a more traditional way of calculating what mortgage payment you can afford. If you house hack a duplex, say $300,000, you may have a ~$1,170 in Principal and Interest ($300,000k purchase, 3.5% down, 6% interest rate) and add maybe $500 for taxes, $200 for Private Mortgage Insurance, and $150 for insurance for a total monthly payment of ~$2,000. Here's to hoping you can find something near the 1% rule in your area that could rent for $1,500 / unit for our example. You live in one side and a tenant in the other. Your living expense is now $500 / month vs whatever you're currently paying to rent (or what you would pay to own that $150k property). Your cash outlay for this purchase is likely around $15-20k for down payment plus closing costs and plan to start with some cash in reserves too. The question comes down to, can you delay your saving/investing in retirement vehicles in order to make this house hack investment? If your goal is to achieve FI sooner, putting all of your money in accounts that aren't intended to be accessed until 59.5 years of age doesn't quite make sense right now. Instead, you could invest money to lower your living expense, pay of debts sooner with the savings, then snowball those funds and the living expense savings into a mix of retirement vehicles and after tax investing to get to your FI number (4% rule). This is classic advice from the BP Money Show if you're not a listener already!

Best of luck getting started! Here for you with any questions you have along the way!

Hi @Bryan LaValley!

First, I'd recommend that you keep/start learning! Podcasts, Books, and Mentors you find by networking. These are things you will do the rest of your real estate investing career.

Second, I'd pick up a copy of Set for Life by Scott Trench as it has a good framework for financial independence, especially for a newer investor. Real Estate is just a part of your total financial picture so don't become too focused on just real estate. You'll want to learn more ways to increase your income now and in the future, keep your expenses low, and take the difference to invest into assets, real estate/business.

Third, if you're not tied to your current home consider transitioning to a house hack if that works in your market.

Fourth, after making a decision on what strategy you want to use, start building your team including an agent, lender, property manager, and handymen/contractors (most likely in this order). An agent (use the find and agent tool here on BP) will get you on the MLS and start sending daily drips of properties to analyze. Find out what your pre-approved for with your lender and start making offers!

In the end, getting a property is just math. In order to write enough offers to get something accepted in today's environment you need to make sure you're receiving enough properties to run the numbers on, that lead to showings, which leads to making offers.

Best of luck! Always here to help!

Hi @Warren Woodward!

I'd recommend that you keep/start learning! Podcasts, Books, and Mentors you find by networking.

I'd pick up a copy of Set for Life by Scott Trench as it has a good framework for financial independence, especially for a newer investor. Real Estate is just a part of your total financial picture so don't become too focused on just real estate. You'll want to learn more ways to increase your income now and in the future, keep your expenses low, and take the difference to invest into assets, real estate/business.

As already mentioned above, a house hack will probably be one of the best strategies for you to get started and take action while giving you a great return because of the low % down needed to get started. Once you get to this point, make sure to run your numbers for both while living in the house hack (lowering your living expense to less than what it would be to rent in your area) and post move out where you need to be at least break even after accounting for your monthly payment + maintenance, capex, vacancy, property management.

Best of luck getting started! Here for you with any questions you have along the way!

Hi @Alex Kesner!

I think it's super important that you have similar values, work ethics, and exit strategies in mind.

These three things can cause stress between the two of you if you're not marching down the same path. It's important to keep up frequent communication on business and personal updates as it will be hard to keep them separate.

It's been mentioned already but having a thorough partnership agreement is a good idea so that you can come to terms of what will happen in certain events while in good standing with each other in the case that things get messy in the future.

I've been told you can go faster alone but farther together. If you can find a good partner in crime, you can really set yourself up for success.

Best of luck and always here to help!

Hi @Zain Butt!

I'd recommend that you keep/start learning! Podcasts, Books, and Mentors you find by networking and working jobs related to real estate.

There has been several great book recommendations above already but I'd also pick up a copy of Set for Life by Scott Trench as it has a good framework for financial independence, especially for a newer investor. Real Estate is just a part of your total financial picture (sounds like you started more from the equities investing side) so don't become too focused on just real estate. You'll want to learn more ways to increase your income now and in the future, keep your expenses low, and take the difference to invest into assets, real estate/business. Other's have mentioned it already, college doesn't guarantee a good income and might just delay you. Look into certificate programs like SalesForce where you could be making a good income in under a year working remote with potentially flexibility in the future to make your own hours as you pivot to real estate.

It sounds like you're considering it already but a house hack will probably be one of the best strategies for you to get started and take action while giving you a great return because of the low % down needed to get started. Once you get to this point, make sure to run your numbers for both while living in the house hack (lowering your living expense to less than what it would be to rent in your area) and post move out where you need to be at least break even after accounting for your monthly payment + maintenance, capex, vacancy, property management.

Best of luck getting started! Here for you with any questions you have along the way!

Hi @Christian Solano!

I'd recommend that you keep/start learning! Podcasts, Books, and Mentors you find by networking.

I'd pick up a copy of Set for Life by Scott Trench as it has a good framework for financial independence, especially for a newer investor. Real Estate is just a part of your total financial picture so don't become too focused on just real estate. You'll want to learn more ways to increase your income now and in the future, keep your expenses low, and take the difference to invest into assets, real estate/business.

As already mentioned above, a house hack will probably be one of the best strategies for you to get started and take action while giving you a great return because of the low % down needed to get started. Once you get to this point, make sure to run your numbers for both while living in the house hack (lowering your living expense to less than what it would be to rent in your area) and post move out where you need to be at least break even after accounting for your monthly payment + maintenance, capex, vacancy, property management.

I know you mentioned trying to get your girlfriend on board as well. You will have to get aligned on what sacrifices that you're willing to make together. By delaying your gratification just a bit with even one house hack for a year, you will set yourself up for longterm success. I think one of the best counter points to the sharing space/privacy issue is going the multi family route. Yes, you will be sharing a wall but you get to pick who it is as opposed to some other landlord that won't be as diligent as you (and your girlfriend) at screening applicants.

Best of luck getting started! Here for you with any questions you have along the way!

Hi @Josue Ojeda!

I'd recommend that you keep/start learning! Podcasts, Books, and Mentors you find by networking.

I'd pick up a copy of Set for Life by Scott Trench as it has a good framework for financial independence, especially for a newer investor. Real Estate is just a part of your total financial picture so don't become too focused on just real estate. You'll want to learn more ways to increase your income now and in the future, keep your expenses low, and take the difference to invest into assets, real estate/business.

As already mentioned above by @Robb Almy and @Corby Goade, a house hack will probably be one of the best strategies for you to get started and take action while giving you a great return because of the low % down needed to get started. Once you get to this point, make sure to run your numbers for both while living in the house hack (lowering your living expense to less than what it would be to rent in your area) and post move out where you need to be at least break even after accounting for your monthly payment + maintenance, capex, vacancy, property management.

Best of luck getting started! Here for you with any questions you have along the way!

Hi @Greg Lewicki!

I'd recommend that you keep/start learning! Podcasts, Books, and Mentors you find by networking.

I'd pick up a copy of Set for Life by Scott Trench as it has a good framework for financial independence, especially for a newer investor. Real Estate is just a part of your total financial picture so don't become too focused on just real estate. You'll want to learn more ways to increase your income now and in the future, keep your expenses low, and take the difference to invest into assets, real estate/business.

As already mentioned above by @Nick Shri, a house hack will probably be one of the best strategies for you to get started and take action while giving you a great return because of the low % down needed to get started. Once you get to this point, make sure to run your numbers for both while living in the house hack (lowering your living expense to less than what it would be to rent in your area) and post move out where you need to be at least break even after accounting for your monthly payment + maintenance, capex, vacancy, property management.

Best of luck getting started! Here for you with any questions you have along the way!

Hi @Matt Aiello!

I definitely recommend that you keep/start learning! Podcasts, Books, and Mentors you find by networking.

I'd pick up a copy of Set for Life by Scott Trench as it has a good framework for financial independence, especially for a newer investor. Real Estate is just a part of your total financial picture so don't become too focused on just real estate. You'll want to learn more ways to increase your income now and in the future, keep your expenses low, and take the difference to invest into assets, real estate/business.

As already mentioned above, a house hack will probably be one of the best strategies for you to get started and take action while giving you a great return because of the low % down needed to get started. Once you get to this point, make sure to run your numbers for both while living in the house hack (lowering your living expense to less than what it would be to rent in your area) and post move out where you need to be at least break even after accounting for your monthly payment + maintenance, capex, vacancy, property management. In today's competitive market, I've found that it's better to focus on how much reserves you can build outside of your mortgage because finding post move out cash flow is definitely a challenge right now! This allows you to take action and start getting your equity built.

Best of luck getting started! Here for you with any questions you have along the way!