All Forum Posts by: William Keeler

Great post @Ryan C.!

I'm actually looking deeper into 203k for my next house hack. 

With buyers in my area ecstatic over the lower interest rates on conventional loans, and driving up prices as a result, It may be the right pivot to use 203k on a property that is much less conventional and often still ignored.

@Matt M. Thanks for the feedback on Easton. In P'burg, I'm looking mostly towards Bridgepoint 78 and the 2800 new jobs it plans to create as an economic driver.

This is a great thread. I'm currently looking into Easton for my 2nd "house hack" (1st is in Phillipsburg, NJ) and have had similar internal debates about West Ward vs Southside. 

My initial interpretation is West Ward may be higher risk/higher reward for potential appreciation, but I'll be doing some more late night drives to get a better feel for some specific blocks.

I do think all of Easton (& residually Phillipsburg for that matter) is headed in the right direction as long as this outbreak hasn't steered too many away from the urban "vibes" the area provides.

I presume you already own your primary residence based on what you are requiring of a deal...

If not, throw those numbers out the window if you're still renting (with it's inherent 0% return on EVERYTHING)

But the only advice I can give as someone fairly new at this is the response to this question...

"The price that comes out of my math is just to low that I don't know if I should even try to make an offer."

I'd just say MAKE THE OFFER. You have your established standards of exactly what you're looking for...

That is phenomenal, the numbers are surgical... Make the offer based solely on those numbers, ON EVERYTHING!

How else will you know where the sellers line is until you cross it!?

The worst they can do is give you a Know with their No...

You may just stumble into a deal, by the sheer numbers game, with a more motivated seller then originally anticipated that was overlooked by window shoppers...

I'd say as long as you have $10k after closing for a property that isn't COMPLETELY disheveled with it's most expensive items (roof, HVAC, plumbing, electric, etc..) you can conservatively move forward...

Most items can be "bandaided" as you go using this reserve & by following the same principles you followed to get to that $10k + your additional savings and wealth building by buying, you should be able to then take on all the "permanent" fixes within a year or so...

In my humble opinion, yes the deal is certainly thin as is... It has problems & under market rent as a result...

If you were looking to buy this property as strictly an investment only (with higher down etc...) I'd play super tough with the seller... "$10000 off the price or I walk"

If however this was a property you were looking to "house hack" to replace rent I'd personally be more towards showing the seller all these quotes & ask to meet you half way via either $5000 total price reduction, closing cost, or pre close repairs done my him/her...

If he/she completely refuses, you have to weigh whether your savings that you're paying in rent can cover these costs over your first seasoning year....

If they do, then you can look at this property as an additional year of "renting" but one in which you now can collect 1.4%+ per month of your purchase price once it's done for the next 29 years. If this is a number you had little/no chance of finding if you passed on this deal & actually paid rent another year then pull the trigger....

BEAST!!! 

Love to see a fellow Brooklyn born and raised breveren killing it!!! They say a homerun on your first deal is not essential but you decided f* that & hit a grand slam!!!

I'm not too far away from you over here in Phillipsburg NJ (on the NJ/PA border) with my little ground ball base hit single but it feels good to just be on base vs striking out every month renting...

Keep up the good work my brother!

Hey man, I'm not from your area but as a new house hacker myself, I'd say plunge right in & find a good agent.

When you say you're a few grand off, that few grand might be in some "nice to have" vs needed renovations in an undervalued property that you can do little by little over your at least 1 year of "seasoning" living there..

Maybe one with an inherited under market tenant (in my experience now it was more the former landlord being a jerk vs this guy being a "problem") that can hold you over...

The quicker you can get the work done on your place, the more secure you can feel in the power chair where if this tenant really is the problem, you get him/her/them out, move in, & get back to work only now renting your portion At market value...

The craziest part that I've realized, being such a newb in this game is that even if the house hack isn't perfect numbers wise (meaning you're still paying some money out of pocket with this inherited tenant), the majority/all of that money you're then "paying" is to yourself...

It's such a mind warp to pay a mortgage on the same schedule (although the bank actually gives you 15 days vs 5) and similar cost to when & how you paid rent but then gather not only the assistance from the renter, but also then see literally EVERYTHING (minus only interest the bank is charging you) go right back to you...

I use the mint app now to track my "net worth" now & watching it go up every month much more then the $300 I'm paying out of pocket for the hack (even with my remodel expenses) has been mind blowing...

Maybe that's where that couple "extra grand" can come from over your seasoning year...

Go get it bud! No reservations! No mercy!

@James Wise Thank you sir. It feels great to not just be the lurking reader on here and to throw myself into the community with my 1st deal!

@David Vitarelli Thank you as well. With my first purchase officially closed, some hard work and a little of that luck will hopefully get me rolling in the right direction!

@Daniel Vandenbos Thanks for your encouraging remarks. Sounds like we are on a similar path and I will take you up on that offer. There's some local Tue REIA meetups I already have had in mind to start attending, maybe we hit them together.

@Brett B. Thank you too sir. Milford was actually an area I was looking at years ago as far as a place nearby for a primary home. What a small world and/or a Big Biggerpockets! I will definitely be posting on all the parts of my journey.

Thank you all for making me feel so welcome!
 

Right now I'm going through the same internal debate.

I'm redoing the flooring of an 800 sq ft 2bd/1ba unit & have a pricy conversion of a useless door into a brick outer wall in my near future.

The difference in the warranty (for what that's worth) is 50 yr  for 12mil vs lifetime for the 20 mil.

I'm going through a similar thought process as far as the countertop options of granite vs laminate counters.

I don't think I'll choose both higher end options (ie granite & 20 mil) because the returns via rent won't make that make sense.

I also don't want to lay a decent penny down on a floor that lasts only one tenant, when an extra $600-$700 could've potentially went through 2-3 turnovers.

Any additional insight on this 12 mil vs 20 mil real world comp would be gold.