All Forum Posts by: Adam Laurenzo

Fund the 401K to the point where your employer matches, not a penny more. Find ways to increase your savings rate. Check out the Mr. Money Mustache blog, if you haven't found it yet. Start from post 1 and read at least the first ten.

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Originally posted by :

.and any overages you can just return yourself to HomeDepot....hard to beat that.

Who returns the overages for you, assuming you're out of state at the time?

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Originally posted by @Daren D Wagner:

Originally posted by @Ryan Riches:

Hey all, a year ago my wife and I bought our first house (primary residence) and started renting it out on Air-bnb to make some extra income to pay off student debt. Simultaneously, I started listening to bigger pockets religiously and I have a stack of real estate investing books I am working through. We set a goal for 2019 to buy our first investment property!

Living in Colorado, the prices are a bit higher than other markets. So we are trying to decide what our next move is. If we want to buy local, we would probably move into the property to avoid putting 20% down - so finding a duplex or 4 plex that we can live in one unit, and rent the rest out. Additionally, we would rent out the property we are currently living in.

The other option it seems would be to invest out of state. I have been analyzing properties in KC, MSP, and Iowa as potential markets. They are attractive because I can get into the game with less cash than here in CO. Obviously all of the fears of being far away and it being our first deal come into play here.

Would love to hear from you all on your experiences with house hacking (specifically in Colorado) and investing out of state. Thanks everyone!

This would be my point of view in your situation. We live out here in Salt Lake and our numbers are pretty rough for buy and hold, much like some places near you in CO, unless you can put down put down 25% or more, which is hard on properties north of 400k.

What we did was look at the potential returns on house-hacking a MFH and what that house would cash flow at AFTER we moved on from house hack (renting all units) as well as how long it would be before we could move onto our next house hack (because cost for a down payment is so high here). Then seriously take those numbers and run them against snowballing in a lower priced market.

Important to consider:

Vac rate in both areas, market appreciation, market depreciation potential (what people dont talk about), returns in both areas, class of tenants in both areas.

If you can purchase 2 homes (or MFH) in a place like MSP or one in two different markets and vac rates are low, cash flow strong, long term that may be hard to beat. Then you can use the forced appreciation on both places to potentially BRRRR into 2 more properties, 4 total for your 2nd year (hence snowball).

Hey Daren, I'm here in your market having the same dilemma. Do you already own your home? I'd love to hear more about what you ended up doing.

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@Cody Tanner how long ago was that? Are you looking out of state now?

@James Marshall oh how I wish I had been here a few years ago. The house across the street from me just went up for 399.

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Salt Lake City, Utah

Originally posted by @James Wise:

Originally posted by @Adam Laurenzo:

Hey folks, I'm looking for some local SLC expertise on starting out with real estate.

A little background: I've been investing most of my money in the stock market the past few years, with a view towards financial independence in the next 10 years or so. I'm quite happy with the results but looking to get into some REI if I can get bigger returns. I've got about $40-50K for that purpose. My partner and I currently rent in Millcreek (essentially a 2+1 house at ~$900/mo.), and aren't really itching to leave that situation without good reason.

Based on some cursory research over the past couple months, I've arrived at two options that interest me:

1.) Buy a duplex or SFR with mother-in-law here in our area and house hack. This seems challenging due to the state of the market, but perhaps not impossible? It would have to be roughly in the Millcreek/Murray/Cottonwood area as I insist on riding my bike to work and spending insane amounts of time in the Cottonwood canyons. I realize there are more economical options in the far west, but I'm trying real hard to not contribute to our inversions.

2.) Keep renting. Buy turnkey properties out of state.

I humbly ask for your input; what would you do with your $50K in my place? Also, if it's option one, I'd love any recommendations for Agents dealing in duplexes/mother in laws in the aforementioned areas.

Thank you all for your time in reading this.

I've always felt investors should cover home base 1st. You have to pay a mortgage no matter what. Why pay someone else's instead of your own?

That sounds natural to me too, but at any cost? Is there a point where I'm being irresponsible?

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Salt Lake City, Utah

Hey folks, I'm looking for some local SLC expertise on starting out with real estate.

Based on some cursory research over the past couple months, I've arrived at two options that interest me:

2.) Keep renting. Buy turnkey properties out of state.

Thank you all for your time in reading this.

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Salt Lake City, Utah

All Forum Posts by: Adam Laurenzo

Adam Laurenzo has started 2 posts and replied 38 times.

Post: Teacher Next Door Program Experiences?

Post: Teacher Next Door Program?

Post: I NEED YOUR CRITICISM ABOUT MY 401K

Post: $200k in six months - long distance RE challenge

Post: Should I house hack a multi-family, or invest out of state?

Post: House Hack in SLC vs. Investing Out of State?

Post: House Hack in SLC vs. Investing Out of State?

Post: House Hack in SLC vs. Investing Out of State?