All Forum Posts by: Andrew Freed

I was thinking of purchasing a SFH and utilizing a rent by the room model. Has anyone implemented this strategy in Austin TX? Have any Advice?

@Jose Rubi - I recommend looking into David Greene's background. He worked as a police officer for years while saving every dollar and investing wisely. You don't need to start with a lot of money to obtain financial freedom but its not hard to get there if you take an educated approach. I would also recommend reading Rich Dad Poor Dad. Having the right positive mindset is key to being successful in the RE world.

Regarding my story, I was always diligent about saving money and not taking on too many liabilities. Live humble now so you can live comfortably later. I went to school, got a 4 year diploma, was hired as a customer service rep at a healthcare company and worked there for 2-3 years saving money and removing debt. While working, I also studied and obtained a masters degree in business all at the expense of the company. At that point, I bought a 1 bedroom condo in Boston and started putting away 20-30% of my income while never looking at it and maintaining the same living standards. Then Covid hit, I read Rich Dad Poor Dad and my entire perspective changed on money. Saving is only half of the equation, investing wisely is the other piece needed to acquire financial freedom. 

Fast forward to now, I was able to utilize a home line of credit for about $200K on my primary residence to purchase more property, have significant reserves in stock, cash and 401k funds all while not even realizing I was building wealth and working to obtain my RE dreams. 

Life is as hard as you make it. Having the right mindset, determination, and open-mindedness will make the journey a whole lot easier and more fulfilling. Best of luck on your journey! 

@Kyle Lawrence - Welcome to the BP community! I actually got started investing in Dorchester myself and own a multi-family in Worcester. I would like to point out that all of the communities you mentioned are great, but it depends on what you are looking for. New Bedford and Fall River has a better cash on cash return, but are not expected to appreciate at the same rate of Worcester. Hence Worcester has a lower cash on cash return as a result but a higher likelihood of appreciation. It all depends on what you are looking for. I am always happy to connect and give my thoughts on the Worcester / Dorcester markets.

@Joseph Miller-Hall - I have gone through the same trials and tribulations. I recently started investing in real estate this year (not including my primary residence) by house hacking a multi-family. What really helped me overcome the leverage component of investing was opening up a home line of credit (HELOC) on my primary residence to allow me to invest. This enabled me to grab large sums of funds at any moment without ever touching my cash. I was able to purchase a 3 family utilizing the HELOC while not paying one cent out of my savings, essentially keeping a large amount of reserves intact.

I also am a very introverted person and networking does not come naturally to me. I've learned that the more you get yourself out there and talk to people, the more comfortable you get at it. Good luck on your journey! Feel free to reach out if you need some shared inspiration. :)

@Collin Schwartz

Fantastic post! I enjoyed reading about your journey. Rich Dad Poor Dad also had a similar effect on my life, mindset is a powerful thing....

Acquire 1 off market multi-family in Worcester Mass to house hack & invest long distance in 1 multi-family in the greater Austin TX area. 

I think you need to run the numbers on your current unit to see if it makes sense from a rental / cash flow perspective. If you are making a few hundred bucks a month, I would recommend setting up a HELOC and using a home line of credit for your down payment / for reserve funds if you need them.

Nonetheless, most importantly, you need to establish a monthly budget and start a side hustle. Even if you are making an extra couple hundred bucks a month in the side hustle, that will amount to thousands of dollars yearly and would allow you to pick up more properties quicker. 

@Sean McDonnell Great recommendation, I will build this practice into my daily activities. I agree it is all about prioritization. Focus on the tasks that will bring you to your goals. Everything else is noise in my opinion. 

Some of the habits I am implementing are setting aside certain time slots for tasks per day such as reading a book for 30 minutes, posting or networking on BP for 20 minutes, analyzing deals for 30 minutes, listening to a podcast for 30 minutes and analyzing stock for 20 minutes. If you think of anything else that might be beneficial, I'd love to hear!

Any multi-million dollar real estate investors out there want to share their daily activities and habits? 

As we all know, success is an accumulation of small tasks so I would really like to mirror daily activities of some successful real estate investors. 

@Eric A. That is fantastic, can't complain about a couple extra hundred bucks going in your pocket every month!