Starting My Real Estate Investment Journey: House Hacking and Seeking Expert Opinions

[Sankha Ghosh]

Hello everyone,

I've been lurking on the forums for a while now and finally decided to put together a preliminary plan before diving into real estate investing. Apologies for the long post, but I wanted to provide enough context and details to get valuable feedback from this community.

My family and I are looking to jump into real estate investing while maintaining our W2 jobs. We currently have a house in OH, that we're renting out, and we live in a rental in Denver, CO.

1. Strategy & Timeline: Start with house hacking by purchasing a duplex, living in one unit and renting out the other. Our goal is to acquire 2-3 more properties in the next 2-4 years, generating a minimum of $1,000-$2,000 in monthly passive income and targeting a cash-on-cash return of 6%-12%. We don’t want to rely on appreciation for profit and don't plan to flip houses quite yet.

1a. Timeline:

Month 1: Finalize the plan and start working with a real estate agent and financial institutions.

Month 2-6: Analyze properties, make offers, and close on a property.

Month 7 or later: Find a tenant and move in by September.

1b. Property Details: We're looking for a duplex priced between $400K - $900K that requires minimal to no work before moving in. We want a 3+ bedroom unit for ourselves and a 2+ bedroom unit to rent out. We're considering locations in Denver and the surrounding areas, and we expect the rent to be between $2000-$3500. I understand these ranges are wide but I have not had a chance nor do I feel I have the expertise to perform a more granular analysis.

2. Financing: We're exploring options for minimal out-of-pocket down payment financing, such as a 5% conventional loan or an FHA loan (planning to stay at least a year). We plan to cover most of the down payment using a HELOC on our current investment property.

3. Property Management: We intend to self-manage the property but will hire a leasing agent to find, screen, and settle tenants. We're not opposed to professional property managers and are willing to pay a 6-8% fee.

4. Help & Resources: We're seeking advice and mentorship from experts in the real estate investment community, both online and offline. This is my current state otherwise

• Financial Advisor: I was referred to one by a friend and plan to schedule a conversation soon.
• Real Estate Agent: I haven't started searching for one yet.
• Financial Institution: I also haven't started looking for a financial institution.
• Mortgage Broker: I'm not sure if I need one at this point.
• Lawyer: I'm also not sure if I need a lawyer at this point.
• Property Manager: Finally, I haven't started searching for a property manager yet.

5. Tools: We plan to use BiggerPockets tools for deal analysis and rent estimation and are considering becoming a PRO member.

Questions:

Property:

• Does my plan pass the sanity check, or am I completely out of whack?
• Is my price estimate and associated rent estimate appropriate for the general locations I'm considering (again apologies for the wide range)?

Financing:

• Will a HELOC be difficult to obtain on an investment property? How can I find institutions that offer HELOCs on investment properties?
• Is asking the seller to buy down a feasible option in the current market conditions?

Help & Resources:

• How do I find an investment-friendly real estate agent? I've heard good things about BiggerPockets finder, but I'd love to hear about your experiences with it.
• Do I need a mortgage broker/lawyer at this point?
• How can I find a mentor? What can I bring to the table to create a mutually beneficial relationship?
• Given my current stage in the real estate investing journey, would you recommend that I invest in joining a bootcamp or attending webinars?

Tools:

• Are there any tools or resources you'd recommend for my journey?
• Was becoming a PRO worth it for you?I 'd love to hear about your personal experiences and insights using it

Networking:

• How do I find like-minded people at the same stage or further along who are willing to help?

Please feel free to add any additional context or suggestions, and let me know if I've missed any critical questions or considerations. I'm eager to learn from this community and start my real estate investment journey on the right foot.

Thank you in advance for your insights and advice!