All Forum Posts by: Ty Ash

Hi @Charles Cathey!

Sounds like this is a great opportunity without actually having the numbers in front of us. I think a single family home purchase is still a good choice today even with rates rising (yet still affordable historically speaking). Especially if you're able to check off at least a couple of these boxes:

1) You're buying it under market value (look at sold listings in the last 3 months nearby for similar finishes, beds, baths, lot size)

2) It fits your current needs for a home

3) It has some "meat on the bone". Whether it's carpet, paint, flooring, landscaping/curb appeal having some ability to force appreciation is a good position to be in. (If 1 and 3 apply, you might have a good live in flip on your hands, read up on this strategy more)

4) You could rent it out and be breakeven or cash flow post move out (use the BP Calculators). You'll be able to use a low % down option to increase your ROI / Cash on Cash.

5) You could see yourself living there for 5-10 years. This gives you time to wait out market corrections and consider the other options above.

All in all, the more options available to you, the better postion you'll be in. There's a good chance that you will build equity over the next couple of years by buying a primary residence that could unlock buying power to you in the form of a HELOC.

Best of luck!

Hi @Alejandro Escalante!

I'd recommend that you keep/start learning! Podcasts, Books, and Mentors you find by networking. You're at a good age to work for someone else and start earning an income while learning from their business and experience in a field of your choice.

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 younger 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 in the future, keep your expenses low now, and take the difference to invest into assets, real estate/business.

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 @Donta Williams!

Curious if these properties are cash flowing only because you are self managing today? If the numbers aren't going to work with Capex, Maintenance, Vacancy, and Management once you relocate, then now is probably a good time to sell and cash in. As other's have mentioned, it might be worth trying to execute a 1031 in order to roll the proceeds into new investments in your new location and defer those capital gains.

Best of luck!

Hi @Mark Ray!

Start learning! Podcasts, Books, and Mentors you find by networking. You're newly out of college but being a life long learner will help you grow both personally and professionally.

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 younger investor. Real Estate is just a part of your total financial picture so don't become too focused on just real estate.

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. 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 @Tommy Barrow!

Congrats on the first deal! I won't answer the LLC question directly but definitely look into getting yourself an Umbrella Policy from the same provider as your home insurance company. It's not too expensive and adds some additional liability coverage!

I've had a good amount of success listing on Zillow and Apartments.com as well. I created a "Tenant Acceptance Criteria" one pager that I send to anyone that reaches out to filter through any tire kickers. Also, make sure to call those work references and past two landlords when screening your candidates! Make your criteria the bad guys and stick to your rules.

Good luck! Don't hesitate to reach out!

 Agreed!

Got it! If it's a single family residence that you're buying as an investment, you should be able to find a 25% down conventional product at a variety of different lenders. There are many other strategies you could use as well but that's the most standard of them all.

Good luck and reach out any time!

Hi @Hochi Yang!

I ran into a similar situation as you when I first got my start.

I went to a bank and said that I'd like to do a lower than 20% down mortgage for duplex that I wanted to buy and rent out the other side. They told me that kind of product doesn't exist. Turns out, that bank just didn't have what we were looking for so when we started asking around, we just found another lender who had the product we needed which ended up being an FHA loan for 3.5% down.

Lesson learned: Sometimes vendors withhold the information hoping they can keep you in their products as opposed to just helping you out and potentially pointing you to a competitor that can serve you.

Can you clarify if you or your partners are going to occupy the property? That will definitely determine the type of financing that you should be asking for. If you want, give me a call as I'm in Wisconsin as well and might be able to talk through some options with you!

Otherwise, best of luck in getting your start with REI!

Hi @Jesus Ramos!

A few other members have already called this out but definitely look into getting started with a house hack. I think that you'll also find a lot of value in listening to the BiggerPockets Money podcast to learn more about financial independence. It sounds like you're already well on your way but they (@Scott Trench and @Mindy Jensen) consistently talk about the 4 key levers in personal finance. Earn more, spend less, build a business, invest in assets (real estate fits into the last two levers but you're also working on your apparel business as well).

Next steps for you are to keep learning (Read Set for Life), interview a few investor friendly agents, and start analyzing deals that fit in your purchase price!

Best of luck, definitely keep us posted on your progress!

Hi @Account Closed!

A ton of great of advice already from @Nathan Gesner! I'll add a few things too based on what I wish I knew before I started investing in real estate:

1) I wish I had dove more into my personal finance education earlier. I would definitely go check out some FI (financial independence) podcasts like BiggerPockets Money to spark some additional research. Real Estate investing is a portion of your total finance picture so I really recommend starting there!

2) Start learning now but once you are financially in the position to take action, do it! It is all too easy to think that the next book or podcast is going to have that one thing you need to finally get you ready to pull the trigger. You'll hear it time and time again here, take action, know the risks, and learn from your mistakes. Side note, you never stop learning so you might as well be taking action along the way.

3) Start building your network. You can't invest alone. You'll need mentors, lenders, agents, contractors, and many other people to help you on your journey. Now's a good time because you're young, willing to learn, and full of energy. People will invest their time into someone who shows their passion.

Best of luck and looking forward to your "First Deal" post in the near future!