All Forum Posts by: Andrew Kougl

@Jordan Brown

You bring a very valuable skill set, either personally or with your contractor relationships. You are already well positioned to take off in this career path. Everyone here and who responds to the Lexington posts is very helpful and you can learn a lot from them. I agree a house hack is a great option if you have enough capital to get into a multifamily. If not, then maybe a live-in flip to start? What are your goals and expectations?

Check the crime map for the area. You might be looking at really bad parts of town if you are seeing those types of deals all over the place. A lot of things have been picked clean and stuff coming on the market, if a semi-deal, goes so fast. If something is sitting for any length of time there is usually something going on you can't see in the public listing.

I know there are specifically for SD, not sure where you are but most investors are from California so I guarantee there is one nearby plus they are all virtual now anyway. I actually haven't gone/attended any meetups yet but I definitely should. 

Yes, you source it and refine over time. I'm no longer looking at Illinois but have people I feel good about in KY. It's really in the process in Iowa but I've made good connections there through BP and internet research and making lots of calls. 

@Amanda Dantés

I have investments in Illinois and Kentucky. And I am keeping my eye on Iowa as well.

@Brandon Castillo

I don't think you'll cash flow when you account for 30% of rent collected going to reserves and property management (based on estimates I use). $1500 rent minus 30% reserves (-$450), minus mortgage (-$1150) leaves you with (-$100) in monthly cash flow. Hopefully you have a cushion saved up for any potential Capex issues early on. As mentioned previously try to aim for the 1% rule, with a $197k purchase price, you'd want $1970 in gross rent.

All that being said, kudos on your first property, much better to get your primary mortgage subsidized by a tenant than you pay 100% out of your pocket. I wish I would have done what you did starting out. Congratulating to your continued success.

@Amanda Dantés

I invest out of state myself, just too expensive and no cash flow. My investments were possible due to my primary residence however as we used the appreciation of southern California with a HELOC to buy out of state. We were very fortunate to buy our primary in 2012 and have taken advantage of the once in a lifetime appreciation that has occurred since then.

If you plan to stay, I agree it makes sense to pay a mortgage versus pay rent, I'd just try to be patient. I am one of those who believe we will have an economic recession and with landlords getting squeezed, especially in CA, they may be looking to offload their properties in the near future. No one has a crystal ball but chances are we are due for some sort of correction. That'd be the time to buy in soCal. Since it's your primary make sure you are happy with where you are going to live for the next 10+ years.

 Could you share those broker details with me? I'm at $450 per unit right now. Thanks

@Amanda Dantés

Hi Amanda, I think only you know if you want to live in your own home or not. I assume you are renting now? Do you want to continue doing that and begin investing? I think if you are considering those options is there a possibility of relocation in the next 3 years? With So Cal being an expensive market, I'm in San Diego, you need to state your commitment to the market. A multifamily house hack is definitely the way to go, but you only get one owner occupied mortgage, so make sure you are in the place you intend to be long term.

As far as you being pre-approved, your decision will definitely affect things. If you didn't mention investing or out of state, that approval was only for a primary residence in the local market.

@Trevor Brown

Using state auto for mine.