Investment choices to make with a family in mind

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Investment choices to make with a family in mind

Anthony Stevens
Member since 2021 · 21 posts · 14 votes

Hello everyone. I am interested in your thoughts about investment aspirations but with obligations of a family. I have my thoughts (or a vision) on what I am wanting to do by next year for my first investment. We are moving to Texas next June and my mindset is to house hack (triplex or fourplex); however, my spouse isn't entirely in enthusiastic as me with this vision with most of these types of properties seem to be relatively smaller in square footage than we are used to. I'm trying to think of a happy compromise to at least purchase a duplex using my VA loan. At least this will still be considered an investment rather than purchasing a SFR and simply paying on it. I'm just reluctant in purchasing a home using my VA for a SFR and then trying for another investment next time and having to go relatively larger using a traditional loan. Don't get me wrong, I'm ready and will figure out a way, and I know there are creative ways to finance, but I am interested in hearing your thoughts on this and another possible trajectory. Thanks in advance.

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Evaristo Urbaez
Waterbury, CT · Member since 2015 · 25 posts · 9 votes
4y

I am in the exact same place you find yourself in. I am planning on looking for a Duplex to Househack and currently live in CT but plan on moving to Florida. My better half was not on board several years ago when I got bit hard with RE investing bug but I managed to get her on board with sharing my vision and goals with her and honing in on this being a very temporary move, a year at most. I just recently sold our home and plan on getting my finances and credit in order all the while putting feelers out as to where in FL we might venture to. I am wishing you all the luck with your endeavors.

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  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    4y

    @Anthony Stevens What part of Texas. In the hot cities VA may be very tough to use, especially on 2-4 units where there is often plenty of competition from investors. Good news is, it sounds like you have some time to plan for that between now and then. Do your best to be able to qualify for conventional loans and bank as much cash in your war chest as you can between now and then to be able to make the most competitive offers.

    As for the Mrs....you have to discuss your goals.....men and women often think very differently on housing.   Your plan is short term pain for long term gain.  You just have to decide together if that is the life you want to build together.   I would also say you should have written goals with a plan and a timeline, so she understands this is not your forever home, but helps to get you to your forever home, maybe a better one.

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  • Evaristo Urbaez
    Waterbury, CT · Member since 2015 · 25 posts · 9 votes
    4y

    I am in the exact same place you find yourself in. I am planning on looking for a Duplex to Househack and currently live in CT but plan on moving to Florida. My better half was not on board several years ago when I got bit hard with RE investing bug but I managed to get her on board with sharing my vision and goals with her and honing in on this being a very temporary move, a year at most. I just recently sold our home and plan on getting my finances and credit in order all the while putting feelers out as to where in FL we might venture to. I am wishing you all the luck with your endeavors.

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  • Brent Kane
    Investor · Manchester, CT · Member since 2021 · 36 posts · 34 votes
    4y

    @Anthony Stevens I’ll second what Evaristo said, I think you and your partner might just need to get on the same page in that the downgrade in quality of life will not last forever. One or two years of “sacrifice” can put you in a position to change the financial trajectory of your family for generations

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  • Anthony Stevens
    OP
    Member since 2021 · 21 posts · 14 votes
    4y

    @Bruce Lynn

    I'm going to be living in the Fort Hood area. I believe we are looking at Harker Heights and the other various areas around there. I am definitely saving money to be ready because Texas is a hot spot. I am from AZ and the VA wasn't a very good reliable option being many people had cold cash offers. I like your phrase "short term pain for long term gain". This is what I am looking at. I will continue to have those talks with the wife. Thanks!!!

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  • Anthony Stevens
    OP
    Member since 2021 · 21 posts · 14 votes
    4y

    @Evaristo Urbaez

    It takes time, this I know.  I am on a mission which requires a lot of reading, podcasts, tv, and networking.  I am learning how to present her with my vision and goals as well.  It'll take time.  All good things take time.  It'll happen. Thanks!!!

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  • Anthony Stevens
    OP
    Member since 2021 · 21 posts · 14 votes
    4y

    @Brent Kane

    This is true. I am still trying to put it in my head on how to explain the investments and goals for the future.   We will get on the same page.  I think it would be difficult to change the mindset of anyone after years of thinking a certain way.  Thanks!!!

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  • Manuel Salce
    Real Estate Agent · Monroe, CT · Member since 2018 · 63 posts · 21 votes
    4y

    I moved to CT a year ago and wasn't able to sell my wife on the idea of househacking, she actually ended up convincing me against the idea of a multi. We ended up buying a SFH in CT and we only put down 5% and bought another investment property in Allentown PA, where the price point is lower and we could easily put down the 15% for an investment property. Worse case find a town where you can afford 15% plus reno or research and find a great deal where you can BRRR. My mortgage is equivalent or less than what I would have paid in rent in any of the towns we wanted to live, I think that's a huge factor in the SFH being a liability argument.

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  • Christine Stefchak
    Realtor · Allentown, PA · Member since 2019 · 18 posts · 5 votes
    4y

    Hi Anthony, here's a quick story time from someone who is with a partner who is not interested in REI but goes along with my schemes and our 2 year old in tow.

    My fiancé and I left a pretty crappy neighborhood fall of 2020 for a value add deal we found in a top rated school district.  (on Craigslist)  We purchased the home 5% down conventional through KW mortgage ( no fees) and immediately listed our current home for sale.  We had about 60 days total from closing day to when we needed to be out of our previous home.  I hired a subpar , but good enough, contractor as well as some quick turnaround pros using home depot to do a very extensive rehab.  (gutted kitchen and the one full bath and put down new flooring throughout, new roof) We survived the reno and moved in 60 days later.   

    Spent 7 months in that home and mid refi I found a mostly turn key 3 unit in an even better area. I put in an offer using FHA with 6% seller assist and I'll be darn they accepted it. We have been living here since August 2021 and LOVE it. I was able to up rents on both of the inherited tenants and so far they have worked out. It's the smallest home we have every lived in but we are so happy here because it's bringing us closer to a position of financial freedom. The rehabbed property we found on Craigslist is now renting for $1,600 per month and is cashflowing like mad even with only putting that 5% down. (mortgage is 960 a month) Yes, I canceled the refi and left a lot of money in that deal but I'm ok with it.

    I just printed out my expense to income tracker for both properties and we are living for about $250 per month with ALL utilities included in that number.  It's been wonderful and will now open the door for even better savings potential moving forward into 2022.  Best of luck in your journey! 

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