First House hack at 29 years old and looking to further my investments

[Joseph Mulero]

Hello All!

I am new to the real estate game.  I have been tapped into bigger pockets for three years prior to my 4 plex purchase.  I am house hacking paying about 500 to cover mortgage.  I do work a full time Job in blue collar and save 3k a month.  By end of year I am estimated to have saved 45K.

I am looking for alternatives to purchase more doors specifically the BRRRR method. Some back story, I used to wholesale real estate and made a few deals. My plan is to D4D or pull list from county and begin marketing on a small scale but with a buyers mindset (whatever doesn't meet my criteria, ill whole sale)

I am a little lost or should I say would like to get investor opinions on my plan and gain some insights from you all.

I don't know much about financing or rehab I have never done it and it feels intimidating while supporting a family.  

(4 plex $497K FHA, 30 YRS 6.2%)

Thank you all in advanced!

[Scott Trench]

@Joseph Mulero congratulations on your first house-hack, and the excellent accumulation rate! 

A couple of options for you to consider: 

1) Just let this first house-hack ride, and stack cash. Put it into stock investments, and know that you are on track to be a millionaire several times over if you can sustain this kind of accumulation. 

2) Serial house-hack. If you move out, you probably have a cash flowing rental. You can just house-hack again at the end of this year, or maybe mix it up and do a live-in-flip. This is essentially a much lower-risk BRRRR, since you will be living in the property and using owner-occupant financing, and also able to do much of the work in your spare time (if you have any) on nights and weekends. Your family may also benefit from helping and learning tricks of the trade. Perhaps a very good example, in the right circumstances, for your kids!

3) If you are set on the BRRRR method, you can consider working with a partner. Contrary to popular belief, partnerships are not ideal structures for people with NO money. They are much better for people like yourself, who prove that they can keep their expenses low, and accumulate cash. You putting in $30K-$45K at year's end on a deal, with cash that you have accumulated with sacrifice, sweat, and discipline, is a huge vote of confidence to many prospective partners, and will make you very attractive.