We are homeless

[Seth Heitzmann]

Hello all,

Like many other new members I have filled my free time with lurking on the forums, reading all the suggested reading material and listening to the BP podcasts. At this point I feel I have the knowledge and capital required to start my investment career but after 6 months of looking at property I have yet to make a purchase.

My better half thinks I have analysis paralysis but I think I just haven’t found a great deal yet. I’m hoping some BP members can provide some advice on how I should get started. But first, here is some background about us.

We are from the Bay Area and are currently homeless. Well, I mean to say we don’t have a home of our own. We sold all of our stuff and have been moving around the country for the last year trying to figure out where we want to live. We recently landed in Oregon and are ready to buy. We love Portland but found Eugene has many of the amenities we seek without the Portland price tag.

Our current plan is to make our first investment a “house hack” so we can finally settle down again and get some experience as landlords. We would then buy additional out-of-state MF residential or commercial with the capital we’ve saved.

Considering there aren't any great deals on the MLS and we need a place to live I have a couple options

• 1.Rent a place in Eugene and look for a great deal via yellow letters, networking, “drive for dollars”, etc. The issue with this is I would be locked into a rental lease and would likely have a have penalties if I find my deal within a year.
• 2.Purchase something listed on the MLS expecting that I'm paying market price.

What would you do if you were in my shoes? And if there is anyone here who is in the Eugene area I would be happy to buy you lunch if you wouldn’t mind sharing your knowledge.

Since this is my first post I’ll pick a question from the Famous 4 and tell you what I do for fun. I love riding motorcycles, bicycles and playing music. You can check out one of my music videos here https://www.youtube.com/watch?v=w7w-Z9zEVQA

[Randy E.]

@Seth Heitzmann, I would do the house hack without the prerequisite that the purchase be a GREAT DEAL.  Waiting for that unicorn of a deal might keep you on the sidelines for a year or more.  And who is to say that when you locate that GREAT DEAL that you will be the winning bidder?  Other, more seasoned investors with deeper pockets than you are also watching for those deals.  I can't tell you how many times my offer was not the one that landed a house.

Your advantage is that you'll be house hacking.  You don't need to find a GREAT DEAL for this to work out for you.  You buy a duplex or triplex.  You live in one side and rent the other unit(s).  You live rent free, or at least at a highly discounted rate.  You save as much money as you can to fund your next Real Estate Investment.  You know the routine.  

Don't get bogged down holding out for that unicorn of a GREAT DEAL.  Find a fair to somewhat-better-than-fair deal and you'll be in the game.