All Forum Posts by: Ty Ash

Hey @Edwin Aguilar!

I just had some FHA house hackers close this month here in Milwaukee and a few more on the search! @Nick Riccio is spot on that you're more than likely going to lose out on a few opportunities before getting the accepted offer but it is possible! Here are my thoughts:

1) Try to find a "nicer" duplex that maybe just needs carpet and paint as sometimes sellers get nervous with accepting an FHA offer due to the Appraisal calling out safety items like peeling paint.

2) Since you're going to need more opportunities with how competitive the market is regardless of where you're looking, make sure you work with your agent to see how many homes have SOLD in your criteria in the past 3 months to give you a reasonable estimate of how many opportunities you will get in the next 3 months. Run your numbers off those sold comps.

Best of luck on your search! Stay positive and keep taking action throughout the process as it will be challenging at times!

Hi @Ryan Hasan,

Totally understand you want to do some research and don't want to bug the agent you've chosen to work with. I'd personally like my clients to reach out so that I know that they are serious and continuing to take the next step in the process over time so that I can make sure to assist them along the way.

However, if you'd like to be more self sufficient and are trying to run some numbers in an area you've identified, try this. Go to any free real estate listing site like Zillow. Search the neighborhoods that you'd like to invest in. Change the filters to Sold, Property Type you're looking to invest in (single or multi for example), and then update the "Sold in Last" in the more section to 90 days. This will give you some really good data to explore:

1) What the investments you're looking at are actually selling for vs looking current inventory that's being listed and going well above asking in less than a week in most markets. This gives you a more realistic purchase price.

2) How many of those properties sold in the last 3 months. This is how many opportunities you can expect to have in the next 3 months in that neighborhood within your criteria. This is your "funnel" that gets mentioned in the podcast all the time.

Take a look at your target area and let me know your thoughts. Is your criteria realistic or should you move your focus elsewhere? Did your agent arm you with this kind of information to set your expectations? Best of luck and hope to hear back on how you're investment journey progresses!

Hey @Alejandro Cuevas! Glad that you're getting involved in the forums and working on educating yourself on the process which is absolutely the first step!

Like @Marshall Leipprandt mentioned, it's time to start building your network by attending local events or by reaching out to other BP members in the area that you want to invest in. It sounds like you're at the point where we all have been. It's time to start taking action! I would do the following having been in your position:

1) Identify what you want your first investment to be (house hack, buy and hold, etc).

2) Interview a few investor friendly agents which you can find on BP ("Network" dropdown) and get access to the MLS to give you properties to analyze.

3) Practice analyzing some deals and bounce the numbers off us here on BP or off the network you're starting to build in your area.

These are all things that you can get done this week to get out of just listening and reading and into real life and taking action where you will really start accelerating your learning. You're at the point where you need to apply what you've learned so far to really get it to stick! Best of luck and I hope to hear from you soon on the progress you're making towards your first investment property!

Hi @John Barkenhagen (JP)!

Welcome to the community! I think that you'll find that you're not alone here on BP in loving numbers haha. @Aaron Lancaster, that's a very cool resource, I'll have to pick up the book. I have two thoughts here that are maybe a prequel to answering your question of "how do I run the full lifecycle of an investment to find out if it will work or not".

1) Make sure you're working on your total financial picture, not just investing (and you may have done this already). Many have said that the BP Money Podcast is almost the prequel to the investing podcast. I think that Scott Trench's book Set for Life has a good framework and they always focus on the four levers you can control in your personal finances. Earn More, Spend Less, Build a Business, Invest in Assets (Real Estate fits into the last two levers).

2) I'm a big believer in the idea that the management of any deal is the key factor in your success as long as the deal was bought correctly initially. Obviously that's the scary part because if you fail, it's probably not as much the investment you chose if you ran the numbers but your own lack of knowledge, network, or experience. You'll have to start somewhere and you need to pick something that you believe in and are potentially passionate about. If you like an asset class you'll be more likely to learn more about it, talk about, and want to buy more of it over the long run.

Hope that this helps without directly answering your question! Best of luck and here for you if you have more questions as you dive in further!

Hey @Will Morehead!

Looking forward to you locking down your first house hack! Again, I also agree with the other contributors on this making sense to improve your living expenses right off the bat. I believe that you need to look at house hacks in two ways. First, will this lower your monthly living expenses once you move in. Second, after you move out, does the property cash flow or in all honesty I'm personally okay with breakeven with how competitive this market is. Here are my thought process for numbers on a house hack:

1) To make it super easy, take collected rents - monthly payment (PITI + PMI since I see that you're using FHA), - your utilities. If you are have a good spread between your current rent + utilities and this number, you're good for step 1.

2) Run your numbers as a post move out rental. This sheet you used should be perfect for this but please make sure you include management fees as an estimate for the future "move out" analysis even if you think you want to manage it yourself. At the very least, this adds buffer and at it's best gives you options.

3) Pull the trigger. If the above are true, there's an opportunity cost of you waiting with saving on monthly living expenses, appreciation over time, depreciation, and really starting to learn by doing your first deal.

Keep on learning and asking questions! Make sure that once you start saving on monthly livining expenses that you start building out your reserves (read Set for Life by Scott Trench for a good framework on "Runway") Here for you if you have any more questions!

Sounds like your main question is getting pre-approved. I'd recommend finding a local lender and meet ups are a great place to find out who is other investors recommend in your area. If you haven't found an agent yet, you may want to start there as they may have someone they trust to close deals and have the products you're looking for. Ideally if you all meet the requirements, you all might be able to qualify for a 5% down conventional product on a 2-4 family instead of using FHA which a lot of times will soften your offer based on seller/listing agents opinion. Reach out anytime directly!

Very excited for you @Connor Lewis! House hacking has made a huge impact on my finances in a positive way and I'm excited for you to get started.

Lot's of great of advice already in the thread but my top 3 tips are:

1. Keep educating yourself by reading (a few good book callouts in the thread already), listening (BP podcasts and Financial Independence podcasts), and work on building your local network.

2. Know your math. I love house hacks because if you're living expense will be lower than what it would take you to rent in your market and you're able to get to at least breakeven post move-out, you can confidently pull the trigger!

3. Treat it like a business. Start working on your processes and systems while you're still small and get ready to buy more to create your own "snowball".

Best of luck and I'm looking forward to your update once you close on your first deal!

Nice work @Liam Tennies!

What has your system been for your BNB turnovers (cleaners/handymen)? Very curious to hear how your "house hack BNB" has been running.

Best of luck searching for your next deal!

Awesome response @Marshall Leipprandt!

@Jacob Garcia I believe Marshall had some great additional questions you should answer. However, I believe you can answer your initial questions yourself.

1. Narrowing down where you invest can be determined by doing some research on what has SOLD in some of your target areas. Would you have bought those deals at their sold price? You might need a rent analysis tool like rentometer or find out what rents are on other rental listing sites. After identifying some neighborhoods where the numbers would have worked, drive the area.

2. We keep hearing the same thing over and over again on the podcast. You don't find deals, you create them. There's a good chance that most of the deals you look at won't work as is with how competitive it is in the market right now. Be flexible but the house hack strategy is very powerful, especially if you have roommates to reduce the monthly payment further.

3. I've got to believe that there is a BP meetup near you. Search for one and attend it. You're lucky to have some friends that can even go with you.

Keep on reading, listening, and asking questions. However, at some point you will need to take the next most important step that moves you closer to your first purchase. Good luck and looking forward to getting an update!

Does it seem like all of your expenses are rising lately? One expense you can control is your housing, with Househacking. Join us to learn from some local investors how to find, analyze, and purchase your first investment deal.

Many of you on the BP Forum know about the technique but may want to learn more about how to do this in Milwaukee. We're excited to bring you a panel format with some local househackers that will give you a chance for some Q&A and some Networking.

Come enjoy a beverage, learn about real estate investing, and work on creating a network of real estate investors.

RSVP through this link: SIGN UP HERE

Hope to see you there!