New House Hacker in Bay Area

[Anthony Chao]

Hey Everyone,

I'm Anthony - I graduated from UC San Diego in 2013, work full time in tech in the Bay Area, and just closed on my first property, a 3/2.5 townhouse in Union City, California in December 2019.

I’m obsessed with real estate investing as a means to achieve financial independence and am focused on building wealth over the long term. In my research and reading, I found BiggerPockets. The BP podcast, calculators, and forums are my favorite resources so far. The stories and deals people have shared are a huge motivation, and I plan to share my experiences as well to give back to this great community.

My two goals this year are:

1. Finish placing two roommates by 3/1/20 to start house hacking
2. Execute a successful BRRRR or Flip deal by 12/1/20

For (2), I'm looking to buy a MFH or SFR property in a B- to B+ neighborhood, in the path of progress. I'm doing daily deal analysis for properties in Tacoma, Dallas, and Tampa. My ideal purchase price is $100k to $200k with 20-30% down. I have the funds for the 20-30% today, but I don't have the experience handling a rehab, working with property managers, or doing a cash out refinance. I'm working through David Greene's Long Distance Real Estate Investing as a start.

The most recent analyses I’ve done here (Flip: https://www.biggerpockets.com/house_flipping_results/190041.pdf?ts=1579313853 & BRRRR: https://www.biggerpockets.com/brrrr-calc/1408810.pdf?c=1579313818) are for a SFR in Tacoma. Looks like a flip is a better option here.

1. What are you thoughts on the analysis?
2. If you were in my position before, what advice do you have regarding executing your first BRRRR / Flip successfully?
3. If you could go back in time, what would you tell your past self before doing your first BRRRR / Flip?

Thanks for your time and I look forward to chatting with all of you. Please feel free to throw some time on my calendar or DM me. Cheers! https://calendly.com/achao/

[Michael Haas]

@Anthony Chao congrats on the house hack! My wife Jess and I have house hacked our way to six properties in the Seattle area - it really works.

We lived in Tacoma for 4 years and think its a great rental market - although its less expensive than Seattle is has appreciated considerably, and I don't think you'll be able to get a property that you'll be happy with for $200K without picking up a heavy fixer. We focus exclusively on fixers for our investments, but you should know it's not easy up here - we have a severe construction labor shortage in Seattle-Tacoma, so renovations often take longer and are more expensive than you would hope. Building your network of local contractors, subs, handymen, and laborers is an absolute must.

Feel free to message me if you'd like to talk more about Tacoma. Cheers!