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If you could go back in time and give yourself advice, what would you say?
As a young investor still in college, I have looked into many different niches. Ultimately, I have decided it is in my best interest to house hack my first property. I am looking for someone to tell me about their experience house hacking, finding their first deal, and if you could go back, what would you do differently? When it comes to financing a property like a house hack I have been researching FHA and 203k loans as most people would. If you have any advice or would like to just share your story and converse with me, feel free to comment or DM me! I really enjoy meeting and talking with new people.
It’s never too early to start! I had over 10 properties by the time I was 19. And I regret about half of those purchases :) but there’s no way to learn like trying.
@Jeffrey Hunter I would have told my previous self to be less selective with the areas that I am looking for deals in. I'm not downplaying the importance of finding a good area, but when I started I was too quick to assume an area didn't fit my criteria because I made assumptions about that area that weren't true.
My first property ended up being in an area I wasn't considering because I THOUGHT the neighborhood was unsafe but that wasn't true. That property is now cash-flowing nearly $500/mo, I have great tenants and I paid much less for the property than I would have in other areas.
Quote from @Alex Gunnerson:
@Jeffrey Hunter I would have told my previous self to be less selective with the areas that I am looking for deals in. I'm not downplaying the importance of finding a good area, but when I started I was too quick to assume an area didn't fit my criteria because I made assumptions about that area that weren't true.
My first property ended up being in an area I wasn't considering because I THOUGHT the neighborhood was unsafe but that wasn't true. That property is now cash-flowing nearly $500/mo, I have great tenants and I paid much less for the property than I would have in other areas.
I am still currently trying to decide which area I want to buy property, whether it is back near my home state or in/around my college town. What are a few things I should consider when evaluating a "good area" to invest?
Like you said, you didn't consider the area you bought your first property that is now cash flowing $500/month, what could I do to eliminate the possibilities of passing up on a deal because I thought it was an unsafe area?
Quote from @Jeffrey Hunter:
As a young investor still in college, I have looked into many different niches. Ultimately, I have decided it is in my best interest to house hack my first property. I am looking for someone to tell me about their experience house hacking, finding their first deal, and if you could go back, what would you do differently? When it comes to financing a property like a house hack I have been researching FHA and 203k loans as most people would. If you have any advice or would like to just share your story and converse with me, feel free to comment or DM me! I really enjoy meeting and talking with new people.
I'd say, start earlier than what you originally planned on doing it. When I got started investing in my sophomore year of college, I started to househack. I had $500 to my name, My grandmother lent me $12k for the downpayment on a duplex on OSU campus in Columbus. Over the course of a year my wife and I fixed it up, rented to friends, ate peanut butter and jelly, did everything we could. We then refinanced the property and it has given us $140k in cash back and continually produces $1,800/month in cash flow. FHA is a great starting point, talk with local lenders about their first time home buyer programs, some have 0% down, no PMI, etc.
Get started and it will be only good things for your future!
Quote from @Jeffrey Hunter
I am still currently trying to decide which area I want to buy property, whether it is back near my home state or in/around my college town. What are a few things I should consider when evaluating a "good area" to invest?
Like you said, you didn't consider the area you bought your first property that is now cash flowing $500/month, what could I do to eliminate the possibilities of passing up on a deal because I thought it was an unsafe area?
On that note - Use people that are experts in their own field to help you. When you find the best person give them your business! This goes for property managers, lenders, agents etc
Also still being in college you'd might as well get your RE license. Get access to the MLS, learn how to run comps, what price you need to buy at
Remember you make your money when you BUY. So buy at the right price. And secondly, LOCATION is key.
If I could go back I would try and find deals (like a wholesaler) where you can get all in for 80% of the ARV. I do it now, but it took a lot of initial capital to get started. I used my own money to buy, rehab if need be, refinance etc. I'd end up leaving between 10-20% in the property usually, which would be equivalent to being all in for 80-90% ARV. Still good but not great
Quote from @Steven Foster Wilson:
Quote from @Jeffrey Hunter:
As a young investor still in college, I have looked into many different niches. Ultimately, I have decided it is in my best interest to house hack my first property. I am looking for someone to tell me about their experience house hacking, finding their first deal, and if you could go back, what would you do differently? When it comes to financing a property like a house hack I have been researching FHA and 203k loans as most people would. If you have any advice or would like to just share your story and converse with me, feel free to comment or DM me! I really enjoy meeting and talking with new people.
I'd say, start earlier than what you originally planned on doing it. When I got started investing in my sophomore year of college, I started to househack. I had $500 to my name, My grandmother lent me $12k for the downpayment on a duplex on OSU campus in Columbus. Over the course of a year my wife and I fixed it up, rented to friends, ate peanut butter and jelly, did everything we could. We then refinanced the property and it has given us $140k in cash back and continually produces $1,800/month in cash flow. FHA is a great starting point, talk with local lenders about their first time home buyer programs, some have 0% down, no PMI, etc.
Get started and it will be only good things for your future!
Great advice, thank you!
I like how you mentioned starting earlier than I am planning. I've been thinking about searching for my first property to house hack once I get out of college. As of right now I have a bunch of capital tied up in other investments, but I am sure I could find a way through a private lender to help me finance a deal. As I just began learning about real estate this past year, my biggest concern is learning how to really crunch the numbers and find a deal that will produce positive cash flow. What do you suggest I do to help analyze a property and learn all of the little details that go into buying that first property?
Quote from @Jeffrey Hunter:
Quote from @Steven Foster Wilson:
Quote from @Jeffrey Hunter:
As a young investor still in college, I have looked into many different niches. Ultimately, I have decided it is in my best interest to house hack my first property. I am looking for someone to tell me about their experience house hacking, finding their first deal, and if you could go back, what would you do differently? When it comes to financing a property like a house hack I have been researching FHA and 203k loans as most people would. If you have any advice or would like to just share your story and converse with me, feel free to comment or DM me! I really enjoy meeting and talking with new people.
I'd say, start earlier than what you originally planned on doing it. When I got started investing in my sophomore year of college, I started to househack. I had $500 to my name, My grandmother lent me $12k for the downpayment on a duplex on OSU campus in Columbus. Over the course of a year my wife and I fixed it up, rented to friends, ate peanut butter and jelly, did everything we could. We then refinanced the property and it has given us $140k in cash back and continually produces $1,800/month in cash flow. FHA is a great starting point, talk with local lenders about their first time home buyer programs, some have 0% down, no PMI, etc.
Get started and it will be only good things for your future!
Great advice, thank you!
I like how you mentioned starting earlier than I am planning. I've been thinking about searching for my first property to house hack once I get out of college. As of right now I have a bunch of capital tied up in other investments, but I am sure I could find a way through a private lender to help me finance a deal. As I just began learning about real estate this past year, my biggest concern is learning how to really crunch the numbers and find a deal that will produce positive cash flow. What do you suggest I do to help analyze a property and learn all of the little details that go into buying that first property?
I would start running numbers now. I always tell my clients who are not ready to buy at the moment to still get my email with deals to get used to running numbers so when they see a good deal they will want to act fast.
If you have not read these books yet I would recommend them to you: I like Million Dollar RE agent by Gary Keller, Million dollar investor by Gary Keller, and The Abcs of Commercial Real Estate Investing by Ken McElroy.
Quote from @Steven Foster Wilson:
Quote from @Jeffrey Hunter:
Quote from @Steven Foster Wilson:
Quote from @Jeffrey Hunter:
As a young investor still in college, I have looked into many different niches. Ultimately, I have decided it is in my best interest to house hack my first property. I am looking for someone to tell me about their experience house hacking, finding their first deal, and if you could go back, what would you do differently? When it comes to financing a property like a house hack I have been researching FHA and 203k loans as most people would. If you have any advice or would like to just share your story and converse with me, feel free to comment or DM me! I really enjoy meeting and talking with new people.
I'd say, start earlier than what you originally planned on doing it. When I got started investing in my sophomore year of college, I started to househack. I had $500 to my name, My grandmother lent me $12k for the downpayment on a duplex on OSU campus in Columbus. Over the course of a year my wife and I fixed it up, rented to friends, ate peanut butter and jelly, did everything we could. We then refinanced the property and it has given us $140k in cash back and continually produces $1,800/month in cash flow. FHA is a great starting point, talk with local lenders about their first time home buyer programs, some have 0% down, no PMI, etc.
Get started and it will be only good things for your future!
Great advice, thank you!
I like how you mentioned starting earlier than I am planning. I've been thinking about searching for my first property to house hack once I get out of college. As of right now I have a bunch of capital tied up in other investments, but I am sure I could find a way through a private lender to help me finance a deal. As I just began learning about real estate this past year, my biggest concern is learning how to really crunch the numbers and find a deal that will produce positive cash flow. What do you suggest I do to help analyze a property and learn all of the little details that go into buying that first property?
I would start running numbers now. I always tell my clients who are not ready to buy at the moment to still get my email with deals to get used to running numbers so when they see a good deal they will want to act fast.
If you have not read these books yet I would recommend them to you: I like Million Dollar RE agent by Gary Keller, Million dollar investor by Gary Keller, and The Abcs of Commercial Real Estate Investing by Ken McElroy.
#4 Personal Finance Contributor
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For me I'd tell myself budget and save! Along with that build your credit. I would also say to myself, focus on growing your income.
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Real Estate Agent Missouri (#2018018941)
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#4 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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What more do you need to know other than the rent on one side needs to cover the mortgage? Everything else is in finding the deal.
@Jeffrey Hunter I have been in KC for a while so I naturally had some biases about the safety of certain areas. I am not exactly sure where my bias came from for this particular area but I was probably assuming that since the area had lower priced homes, the area must be unsafe, which obviously isn't always true.
#1 House Hacking Contributor
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@Jeffrey Hunter I would tell myself to get started earlier! I am jealous you are starting so early. Good on you. Here is some advice I offer to people in college b/c usually they don't have a W2 that pays enough to qualify on their own.
Here is an interesting idea. Use your knowledge and drive to convince your parents (or other co-signer) to get a home near your college. Co-sign with them and put some money down with them if you can.
Buy it as YOUR primary residence with your parents as the co-signers. This would allow you and your parents to only have to put 3.5-5% down. Then you rent out the rooms to your college friends. This will probably allow you to live for free and your parents to avoid a dorm or expensive home payment while you are in college. Not to mention you can both cash in on appreciation and loan paydown.
If you really wanted to scale, you could do this each year. Rent out the last house to a new group and move with your friends to the next house. This is a great way to scale and you only have to put 5% down if its your primary residence each time.
You obviously need to convince your parents or (someone who would co-sign and help with the downpayment) about how good of an idea this is. But if they are savvy money people and they trust you (which I bet the do), then this seems very doable. Maybe give them part of the equity or a monthly fee until you refinance and get their co-signing off the loan.
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Real Estate Agent Colorado (#100092341)
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I would tell myself to invest that $5K graduation check from the grandparents more wisely!
Bought my first house-hack a year after landing my first job. Best decision I've made! House-hacking helped me become a landlord, learn how to analyze deals, and also was a stepping stone for me into real estate investing. It wasn't a home run when I bought it, but it significantly reduced my living expenses while owning my own property was a huge win for me. Definitely no regrets.
I would've told myself that the only person you can rely on is yourself. The first two years of my journey in real-estate I was hyper focused on friends and family that were at the time interested in investing. But for one reason or another they didn't hold up their end or didn't put in the work required. Leaving me feeling defeated. After having a few potential partners bail out on me I decided to give it a shot solo and I have not looked back since!
Immediate execution on a mediocre game plan is better than no execution on a perfect game plan.
It took me a very long time to learn this, and I still struggle with it to this day. It is so easy to research, obsess, and try to get all your ducks in a row before executing, that we often fail to execute at all. There is never a "perfect" time to execute on a plan. The market, the economy, technology, the world... it is all constantly changing, so it is impossible to have the perfect plan. I need to constantly remind myself that it is ok to fail, make mistakes, and look silly sometimes. That's how you learn and grow... through experience and repetition. If only I had known this fifteen years ago!
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Quote from @Jeffrey Hunter:
As a young investor still in college, I have looked into many different niches. Ultimately, I have decided it is in my best interest to house hack my first property. I am looking for someone to tell me about their experience house hacking, finding their first deal, and if you could go back, what would you do differently? When it comes to financing a property like a house hack I have been researching FHA and 203k loans as most people would. If you have any advice or would like to just share your story and converse with me, feel free to comment or DM me! I Really enjoy meeting and talking with new people.
Hindsight is always 20/20 so it's difficult to give this advice....
Mine would be to not waste my time with real estate and use every penny I have to buy bitcoin when it was a a fraction of a penny! Of course that's knowing it went to 60k.
Realistically, I would say not to get held up on a few thousand dollars in price difference. I lost deals because I was off by what shouldn't kill a deal. I basically saved a few thousand dollars at the expense of a few hundred thousand at the end of the day.
The most important ingredient in RE is time. That's a big piece of advice I have for my past self. Building wealth takes time.
Quote from @Phillip Austin:
I would tell myself to invest that $5K graduation check from the grandparents more wisely!
haha love this one! Definitely in the works of saving for my first property.
Quote from @Bob Stevens:
Quote from @Jeffrey Hunter:
As a young investor still in college, I have looked into many different niches. Ultimately, I have decided it is in my best interest to house hack my first property. I am looking for someone to tell me about their experience house hacking, finding their first deal, and if you could go back, what would you do differently? When it comes to financing a property like a house hack I have been researching FHA and 203k loans as most people would. If you have any advice or would like to just share your story and converse with me, feel free to comment or DM me! I Really enjoy meeting and talking with new people.
Good advice, I am definitely interested in the long term cash flow rather than house flipping. All though profit is profit, still valuable information to look back at and take note.
Quote from @Thomas McCarthy:
Thomas, that was great advice. A good way of looking at things. I agree with you, I am not interested in working the paycheck to paycheck making someone else money. Thankfully, I am beginning to learn at a young age so I can afford to take some risk. With the right team - which I am currently trying to build - I am confident in myself! Everyone has their own path.
How many properties do you own now and what type?
I’d tell myself to go bigger. Now that I can accurately assess risk within real estate, I know that when I started I could have tolerated a lot more
Quote from @Luka Milicevic:
Hindsight is always 20/20 so it's difficult to give this advice....
Mine would be to not waste my time with real estate and use every penny I have to buy bitcoin when it was a a fraction of a penny! Of course that's knowing it went to 60k.
Realistically, I would say not to get held up on a few thousand dollars in price difference. I lost deals because I was off by what shouldn't kill a deal. I basically saved a few thousand dollars at the expense of a few hundred thousand at the end of the day.
The most important ingredient in RE is time. That's a big piece of advice I have for my past self. Building wealth takes time.
Time is precious. Interesting to see your perspective and understanding that wealth is not made overnight. Unless you invested in Bitcoin the day before it went up 10,000%
Quote from @Dennis Nguyen:
Bought my first house-hack a year after landing my first job. Best decision I've made! House-hacking helped me become a landlord, learn how to analyze deals, and also was a stepping stone for me into real estate investing. It wasn't a home run when I bought it, but it significantly reduced my living expenses while owning my own property was a huge win for me. Definitely no regrets.
Thats awesome. If you don't mind me asking, where did you buy and what did the numbers look like? I'd love to connect and talk more about your experience!