All Forum Posts by: Austen Mueller

What your describing is househacking and its a great stratygy! Buying multiple properties taking advantage of low FHA downpayment is a great plan. There are great resources on this site for finding mortgage companies and agents. I always recommend working with a mortgage company your agent already regularly works with.

My 2 cents...

1. As a first time homebuyer Househacking is the best option for decreasing housing costs and quickly getting into realestate, especially when you dont have that much money and want to utilize an FHA loan.

2. IS your budget able to borrow $175k or do you have $175k cash your sitting on? 

3. How quickly you can refi and pull money out of your equity will be detrmined on how much equity you build. In a year you wont have that much equity in the deal without putting money or a lot of work into it. If you put a lot of work into it your looking at BRRRRing. THis is the quickest way to build a real esate portfolio but the most time/money intensive. 

4. As far as the market goes. I dont think anyone knows. somestratygies are more prone to being affected by the market than others. FOr example a fix n flip before a bubble is riskier than a long term buy n hold. 

This would be a good investment for a passive investor who doesnt want to put in the time to "squeeze the value" out of it. Maybe they are looking to buy cash, just diversify investments, and plan on holding for a long time. They dont want to be on the phone dealing with tenant issues and leaky pipes. Same reason someone may want to purchase a new construction investment. 

Dont trip bro, Switch it up and see what happens, keep up the good work. Good things are coming. 

Way to take the jump. Doesnt sound like a terrible deal. Keep grinding!! Soon the house will be fixed and you can start saving to get into your next househack. Keep up the good work. 

I would say your going down the right path for sure. SoCal is a pricey market. Sounds like next steps for you are choosing a market to invest in and finding a property mangmemt in that state to mange your assets for you. I'm an agent out here in Pennsylvania. Always happy to chat about the markets here and real esate in general. 

Good luck! 

Hey there! curious what everyone is seeing in there market. Out here in PA were are still pleagued by low inventory. Buyers seem to be back in the market after intrest rates stablized. Still seeing homes cloes WAY over asking and having MANY offers. If it is priced right, properties get sold in a week easily. Quicker if the seller doesmt want to wait for all the offers to come in haha. The centiment is the same in the turnkey SFH and small multi unit investment space.

Every market is diffrent. For a return like that it aounds like it is a nice turnkey property. This may suit someone looking to capitalize on appreciation in the market and has a large sum of money they want to invest. The deal you mention I wouldnt be intrested in because I couldnt carry that. Maybe look at property that needs work or purchasing a single family home or condo, Moving, then renting it out. That househacking startygy could make more sense in your market.

For me persoanlly. I invested in a 2unit in Reading PA. Much cheaper market. I got my duplex for $170k. It is outdated and I have been fixing it up as I go. As I live in it. It does not cashflow. When I leave I anticipate a break even if not slighlty positive cashflow with market rents and some more updating. 

Some of these pod casts cherry pick great deals in my opinion. Not that its imposible. But it should NOT be the standard you set for yourself. Because then you would never purchase haha. For a househack you should really be focused on your needs in your market. My househack was no Homerun deal. But I like where I live, and now that I actually own it I can start realizing the benfits of real estate investing. My living expenses are less than 90% of the people that live around me. Being that I probably pay around $600/mo bottom line, And that gets me a home Im happy to live in. I was able to increase the value of my property by fixing it up over the last year as well. All the while paying down my mortgage and saving money on taxes. 

Focus on your needs and not trying to keep up with the househacking Jones's who get these crazy returns. It wouldnt surprise me if they fudge the numbers a little for more views, and take into account the year they did it. I doubt that many people have been getting those homerun deals since COVID and the drop of inventory unless it was a "genuine" off market deal they found and negotiated directly with the seller. 

You sent the deal to multiple investors im guessing. You sent it to everyone without "BCC"ing them in your email. Everyone could see everyone elses email address. Generally investors don't like that. I'm guilty of doing this myself haha

If you use a FHA loan your down payment should be 3.5% even 0% money down options like VA or USDA can be used if you plan on living in the property. Have you looked into these options? why does it seem like you will need to put down 15%? Hope this helps