All Forum Posts by: Vincent Ludegna

This is something I can’t seem to wrap my mind around, maybe someone with more experience can share some of their knowledge with me.

Say I have $60,000 saved in the bank and I want to buy my first property. My long term goal is to acquire a small portfolio of rental properties over the next 10 years. My short term goal is to purchase a property that gets my foot in the door of real estate, while also providing me a place to live.

That being said...

Do I buy a residential property with and FHA loan and house hack it?

Or.....

Do I put 20% down on a cash flowing rental property and go rent an affordable apartment elsewhere?

@Trevor Hatchard

Thank you Trevor! I’ll check that out later tonight.

@Jonathan Taylor

Thanks jonathan! I’ll definitely have to check that out.

@Michael Tripp @Daniel Gutierrez @Sara Martin

Thank you all for pitching in your opinions and experience. Definitely a lot of solid information and advice floating around on this form.

Another question, going off your example Daniel, if I'm considering adding value to a small multi family; is worth doing something like an FHA 203k loan? Or should I find another means of capital to fund the rehabbing portion?

@Adriel Liwag

Adriel, thank you for the advice and recommendation! As for East LA I have definitely considered that area but being that this first property would be my primary residence, LA would not be an ideal location for me at this time. However, I still keep my mind open to all locations.

@Sara Martin

Sara, for that reason alone I’ve debated on moving out of CA. Just about everywhere else seems to be significantly cheaper, with a few exceptions of course. However, I think with the house hack technique it makes it a bit more realistic to live, and begin to invest, here in SoCal. Truthfully I would like to go straight into a triplex or higher, but a duplex seems realistic for me at the moment.

As for the property taxes, I could be wrong, but ideally I think those should be incorporated into your analysis of the property when you are looking to buy. Just to avoid whipping out your potential cash flow at the end of the year, as you previously mentioned. BP has some great calculators that can help with that (rental calculator).

@Irina Costea

Thank you for the different perspective. I will definitely have to do my homework on that subject.

@Daniel Gutierrez

This great all great information Daniel! Thank you very much for taking the time to answer my questions.

@Daniel Gutierrez

Daniel, it gives me a bit of confidence that you have had success investing in Long Beach. Do you tend to stick to a particular area of Long Beach? I heard North Long Beach is the place to be right now.

As go the inspections, would you happen to have any recommendations for a company or individual that does inspections? Lastly, can I make an offer contingent on an inspection?

Sorry for bombarding you with questions, I just want to try and learn as much as possible. I appreciate your help!

@Irina Costea

Hi Irina, this might be a newbie question but what is an ADU? This is the first time I've ever heard of this.

Is it an expensive process to do?