All Forum Posts by: Aaron Rizzo

Welcome! I own 3 SFH in the southtowns and i'm always looking for more deals. My personal goal is to get 10 units in the 2 years so big congrats on an 18 unit!

If your ever interested in partnering or anything let me know!

*UPDATE* I ended up adding the bedroom, made the house so much more functional and cost very little at the end of the day. It did delay listing the apartment by two months but well worth it.

PP-$38k

Rehab-$12k

$50K All in

Appraisal $120k

Rent $1200/MO

Success

!

@Marian Smith I bought my primary as a foreclosure for $32k pipes burst everything was broken. I rehabbed the entire house for $12k, lumber,plumbing,flooring,cabinets etc...

I'm literally adding 2 interior walls a doorway, a closet and a window. the only thing that will cost the most money is getting a tankless water heater to conserve space.The add might cost $3k but it's right around there. But it will take sometime with me working full time.

You bring up a good point and it could cost more, but it I know for sure it will be in the $2k-$3k range.

@Ryan Howell you basically understand my situation perfectly.

I'm very aggressive right now to be buying this house, I pulled out my 401k to buy in cash and I have around $7,000 in savings for my family of 4.And I do not make a lot of money. We have always just scrapped by but I need to start making money and pursuing RE so I'm jumping all in.

I'm trying to get a HELOC on my primary now, which will make the decision much easier to make.

I have found a way to add a bedroom to a 1BR house(my firs purchase) I just purchased and plan to rent, and hold on to. The main issue is it's not a simple add, removing walls shifting water lines adding windows and doors. I know I could do it fairly cheap(since I do all the work myself) but it would take me a-lot more time to do this and require a-lot of shifting of appliances in the bathroom.

I don't have a ton of cash right now, and i'm worried if I dump it all on this rehab that will leave me pretty dry.

I'm in a average market outside of Buffalo, NY. Rents go anywhere from $750-1200 by me. My goal was to make it the nicest in the area and make it a 2br since it would add a-lot of value to the property and get me more rent(Aiming for  $900 as a 1BR or $1,200 as a 2BR).

It would only cost me about $2,500 to add the bedroom but possibly 3-4weeks extra in rehab because of shifting waterlines etc while working my day job.

Is it dumb to still do rehabs but ingore the bedroom add and later down the road when I have more cash I do a bedroom addition? I know adding the bedroom makes the most sense on paper but the length of the addition and adding costs is what concerns me.

Thanks for your help!

Karen, I personally would like to find a property with two houses on one lot. I've seen quite a few of them in our area and I know we could find one. that way we can have the benefits of someone paying our mortgage but not sharing a house with them.

and Tom, so are you saying I should try and sell my current home? It seems numbers wise to be the smartest decision I just need to get over the emotion of it lol.

**SNAPSHOPT**

I am sitting on around $60k in equity on my current SFH. Mortgage is only $600 a month.I've basically maxed out appreciation on my current home so it will continue to rise pretty slow at this point. We have made our home perfect for our family of four, but the location is not where we want to be and we do want to move in the next two years regardless.

We live outside of Buffalo, NY and nice SF and MF home's range from $60k-$200k so they are much cheaper than some other places.

I am looking to get financial freedom with RE, so I would like to move quickly but still have a good home life for our children. I would rather my family stay in one house rather than bounce around every year or so.

So my question is:

Is it better for me to stay in our cheap home that we like, and refinance and get as much out of our equity as I can which would be around $30K. And I use that to fund my first MultiFamily, and just try and keep coming up with cash for down payments for the rest?

Or 

I sell my home and we House hack with the goal of paying no more than $600 a month(with help from tenant rent).That way I can have my full $60k in equity to fund buying at least two properties right away.

Thanks for your insights 

Much Love,

-Aaron

@Matthew Irish-Jones

My plan would be just a rental as I’m not too confident in the idea of using it as an Air BNB but admittedly I know very little about that part of RE.

I would prefer to start as a rental and possibly switch to an Air BNB once I get more properties or understand that world better.

@Brandon Kmiotek

I keep using different calculators and I like what I’m getting. Just afraid of being too bias.I’m going to be more conservative considering it’s my first investment property and then hopefully get bigger deals.

Hey man, it’s in Angola, NY. That was one of the first thing I considered but I’m just not sure the viability of that yet so for now I’m just focused on cash flow with rental income. But I’m definitely exploring that route.

The property is just out of the flood zone luckily!

Thanks for the tips!

@CJ M.

Thanks for the response! I'm going to shoot to get it for 100k and try my best to use as little out of pocket as possible but still not have PMI.