All Forum Posts by: Adam Carbone

Deal #7: Duplex. Private lender for purchase and renovations. May end up using $3,000 of my own money for going a little on the higher end of my renovation budget due to an unforeseen issue, so I’ll be going over the borrowed amount. I expect to get this back soon in the refinance since I’m doing a big reno on this one.

So my own money has come into play twice, both times when I closed on a property and the existing tenant moved out soon after closing. Using “none” of my own money for purchases and for most of the renovations is how I have kept healthy reserves for each property, which can tide me over on a tenant turnover to make repairs until I refinance. All in all it would add up to ~$9,000 of repairs for the 9 units after the first deal, and total $23,000 for all 10 units. Except for the $14,000 from the first deal, I expect to get back most or all of the repair costs since they are BRRRs. Stay tuned for the refinances though.

Hello!

Thank you so much for your story! My wife and I are teachers as well. I'm still having trouble understanding one part of your story, however. Would you kindly help me understand?

You refer to "your own money" a couple times. Is this the traditional income from your teaching job? Or something else entirely?

Thank you so much!

1 Vote

Good evening! My name is Adam Carbone, and my wife and I live in Louisville. We love our jobs as teachers, but we have dreams of a large family. I've always been fascinated - even enthralled - by the world of finance and investing. We graduated school with no debt, and I'm ready to capitalize on my debt free opportunity.

My long term goal is to supplement my teacher's salary with passive income to the point that my sweet wife doesn't have to work anymore. My short term goals include purchasing a house-hacking duplex as our first property by my 25th birthday, and owning three buy-and-hold properties in three years.

I've gotten so much out of reading and listening, and now I'm looking forward to interacting.

Cheers,

5 Votes

Hello, newbie here! Looking to house hack for my first property and first home around Louisville, Kentucky. My wife and I have no debt and are looking to maximize that opportunity by purchasing a duplex and renting out the other side.

Still in the planning phase, we're trying to figure out when we will be ready to buy.

Having never used credit cards or taken any loans before, I understand that my father-in-law would need to co-sign the mortgage anyway.

So, my question is this: If a couple thousand dollars (i.e. >10000) in down payment were to make the difference between $450 in monthly mortgage and $415 in monthly mortgage, should I also ask my father-in-law if he would like to partner with me? I'm hesitant to ask because this is my first deal. Traditional wisdom says that borrowing money from family is bad.

On one hand, when has traditional financial "wisdom" ever made anyone any money?

On the other hand, borrowing money from anyone without significant ground rules and clear agreements is a recipe for disaster.

Looking forward to some dialogue!

1 Vote

All Forum Posts by: Adam Carbone

Adam Carbone has started 3 posts and replied 13 times.

Post: From teacher to 10 units in 10 months!

Post: Newbie in Louisville, Kentucky

Post: Borrow Additional Capital from Family for Mortgage?