All Forum Posts by: Amir Ainsworth

 Thank you for the response, Danielle. I was only thinking about the financial strain and not the property management strain that CA offers due to its laws. I will definitely keep this in mind.

Thank you for the response, Caleb. Yes, that is very true with the fact that I can cash in on appreciation and purchase my next couple of properties in the midwest.

Hello BP Community,

I am currently deciding whether I should HouseHack in Southern California, which as we all know is a very expensive market or invest out of state in the Cleveland Ohio area. What are the pros/cons that you guys can think of in choosing either option? I have thought out some below.

HouseHack in California
Pros: 

1. Possibly live rent free or at a reduced rent amount. 

2. Can use an owner-occupied loan to purchase the house.

3. Easier to self-manage and get my feet wet in REI.

4. Can save money on renovation cost if needed by doing the work myself.

Cons:

1. Very expensive market that is hard to find cash flow.

2. Will put a bigger strain on my financial position if something goes wrong or can't find tenants right away. Much more expensive mortgage payment.

3. Low or negative COC return

Invest Out of State (Cleveland)

Pros:

1. Likely to find properties that cash flow significantly.

2. Much easier to cover the mortage if something goes wrong.

3. Will force me to expand my REI capabilities by creating systems.

4. COC return will be much higher.

Cons:

1. Will still have to pay for rent in California

2. Will not qualify for owner-occupied financing

3. Will not get as much appreciation as in California.

Note: My main goal is cash flow right now as I am young and want the CF for financial independence. Both routes will help me get there quicker. If I am house hacking, I will have a low rent payment or none at all and if I am investing out of state, I will get cash flow from the units. Right now, I have about 34K for a downpayment + closing cost and $6,500 in my emergency fund for reserves if needed. I am looking to buy small multifamily properties in both markets (2-4) units. 

@Andrew Postell Thank you for the reply and solid advice. I will definitely look into the terms and conditions and compare lenders. Best regards!

Thank you for responses! I appreciate them a ton.

I am looking for a single-family home to househack. Which is why I am getting a rates around this number. The loan terms were for a 3% down 3.625 interest rate over 30 years. I believe this is a good rate for my situation but I just wanted to verify or see if I could do better.

Hi everyone,

I just recently met with a lender and she told me she could offer me a loan with an interest rate of 3.625%. I know this is a good rate in the grand scheme of interest rates, but I was wondering if anyone else was receiving better rates or if this was high compared to rates people are receiving right now. I am in California, the Inland Empire area.