All Forum Posts by: Ben Rhodin

Hey @Ann Wing  

Like @Bridget Brazelton mentioned, I wouldn't rule it out because it's a new build, there are plenty of pros to buying newer construction. Mainly that you know it's up to current code standards and is new age construction. So you won't have to worry about updating electric, sewer, plumbing, or anything of that nature. 

Hopefully, as long as it's properly built, there won't be much in the way of maintenance or Cap-Ex for the first 5-10 years. Then along with that buying new construction you can feel pretty assured that the area is in demand since someone put forth the money and time to develop a whole new community. I would make sure that there is a strong rental market in the specific area, and that your specific strategy will be allowed/work. 

Really, as long as the numbers make sense, then the deal makes sense. Doesn't matter if it's new construction or a house from the 50s. Just different things to take into account when analyzing the deal!

Hi @Neal Ichinohe ! I'm going to agree with Grace and Jeff who posted before me. Have you talked to multiple lenders here in Denver? As some are more creative and more willing to work with you than some of say the bigger national banks are. Is the issue being approved at all, or being approved for the amount you were hoping for? If you don't mind me asking. 

If it is the latter, I would talk about your goals with House Hacking, and how much comfortability you are willing to sacrifice, as Jeff said. There is a whole array of options for house hacks, and it's not about hitting a home run on the first one, but getting started and gaining the experience. Even if you have to start with something smaller like a condo or townhome, that you just rent a bedroom short term, midterm, or longterm, you are still moving down the field of investing. Then you can free up some time and money from offsetting your living cost, and save more for the next property. 

It's about getting that momentum started, and building up speed. The first one is always going to be the trickiest and most intimidating.

Hey @Alex Coke! Like everyone else has already pointed out here, house hacking can take on many different forms. It's it simplest forum house hacking is buying a residence and offsetting the cost of the mortgage in one of many ways. It can be as little as renting it as a short-term rental while you are traveling, or have a buddy to shack up with for a few weekends; or as involved as living in a van or trailer on the driveway and renting the house out completely. 

It can really take on any form and people are finding new ways to do it each and every day! The main goal is to offset your living cost and gain an appreciating asset which you can then move out of and do it over and over again. It frees up your time, and is a great way to kickstart an investing career without much risk!

Hi @James Jones. While what Seth said about the stricter requirements and competition is 100% true. I am going to disagree that it is a benefit in the Multifamily realm. While you will be dealing with "less" competition you also have to take into account the difference in seller profiles on multi families. 

You are dealing with other investors as the seller and buyer, and typically these investors are not wanting a contract contingent on a bunch of strict criteria that come along with the government loans. These sellers are usually looking for the quickest, and most sure-fire offer, as they are either 1031 exchanging the property into another property, or want to get rid of it. They typically don't want to deal with having to go through inspections and appraisals that might make the price change, or make the contract fall through. I believe this is what your broker is trying to get across. 

It is no way means that you can't or shouldn't use your VA loan, I know plenty of people who have successfully used them on both multi and single-family properties. It is simply important to understand the motivation behind the sellers, it isn't always about the amount of the offer, but a lot of time about the ease of closing.

I wouldn't get discouraged, and it nowhere impossible to get a great deal with your VA loan.

Hey @Melissa Noonan! While reaching out to lenders here in BP and other ways is a great source of referrals and random finds. I would work to also find a good investor-friendly agent in the area, as they will typically have a few recommendations and preferred lenders that they work with. 

Typically using a lender and agent who already have a relationship can make the purchase process run a bit smoother as they will be in tune with each other already. Each one will know where you are at in the process, and what step of the search you need to be on.

Hey @Josh Horst! Great to hear that you are already using driving for Doordash to drive for dollars. If anything you are getting a great feel for the Denver area, and where you might want to invest for your first house hack! 

Like @Stuart Grazier said the first step will be connecting with an investor-focused agent, who knows the ins and outs of house hacking. Either that agent will recommend you one, or you need to find a Lender who will be able to work with you, and figure out what you can qualify for. While a single-family house and rent by the room will yield the best cash flow, it may not work or be favorable for everyone. 

But that is the great thing about house hacking! No matter which avenue you take, you are at least pushing towards a goal and a FI future. Even if you purchase a condo, and just Airbnb it while you are out of town, or over the weekends you are still better off than paying rent to someone else.

So finding an Agent, and getting to work with a lender is the best steps you can take right now so that you can work with them to figure out what strategy will fit best, and be the best compromise given what you can qualify for, and what your needs are! You will also never regret getting started early, as then you will be ready to jump once it gets closer to August!

Wish you the best of luck, and keep your eyes peeled while driving around!

Hi Douglas! While house hacking will definitely get you the best bang for your buck when everything is considered, there isn't a one size fits all strategy for it. Are you willing to move your current family? Then you could take the NOMAD route, and move out of your current home, and turn that into a rental (as long as it cash flows) and purchase another house for you and your family with a nice low down payment loan. Then you can continue to do this each year (or longer if you don't want to uproot each year) and you will be accumulating cash flowing rental each year! 

As for whether you should partner or get your own loan. There are pros and cons to each one. Partnering will result in lower cash flow for yourself, but depending on the structure you will also bring less capital (if any) into the deal. Before partnering it is important to figure out what you are bringing to the table. The hustle to find and manage a deal? The capital? Or are you splitting everything 50/50?

A conventional loan will allow you more cashflow, and the ability to handle it however you want. But you have to bring all the capital and resources to the deal yourself. You also take on 100% of the risk. 

In my personal opinion, I am all for whatever gets the deal done! Both partnering and doing your own are a great way to make things happen in real estate. Also, if you are able to find a partner that has the capital, and you can find and manage the deal, why not do that and then go for your own deal with a conventional loan in your name too? BOOM now you have two deals right there :)

Hey @Brandon C.! Happy to hear you taking the plunge into getting your License. I am not sure how things are going with classes during COVID, but I will say that pretty much everyone I know who has gotten their license got them through an online school. In all honesty, the classes are mostly to get things going and get your license, you will learn more in your first couple of months as a broker than you did during the classes. 

I would recommend focusing more on finding a team, or a current broker that you can latch onto and have as a resource while you go through the classes, or even better Shadow and talk to about the actual nuances of being a broker. The classes are great to get you through the test, but it truly won't replace experience and learning from others. 

The other benefit of online classes is that you can make it however fast or slow you want, so I've known agents that did it in a month, and I've known people who never finish it (haha). So while it might be nice to be in person and be forced to participate and have your focus captured, you might find it slows down your progress to take the test.

But those are just a few quick thoughts! As for your actual question, I went through VanEd as they had a sale going on, and I found they provided a bit more resources than the others.

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Hey Brandon!

You aren't wrong in your thinking, that is the primary demographic you are targeting. There are some other tenant pools that you can also target (Military, Student, Traveling nurses, or other contract-based workers). But the options are pretty endless, and there isn't a shortage of tenants to place into these properties.

Hey @Benjamin Taylor! That's a fantastic story and it's never bad to focus your efforts on something outside of Real Estate. There is no one way to make it to your goals, and they are always changing!

It was definitely a smart way to go with cutting your living expense, House Hacking will always provide you one of the best ROIs in the game. If you are looking to expand and grow some before being able to put that 20% on investment property, I would maybe look to make a new move to another Primary residence. You'd be able to maintain your current property as a rental, giving you the true landlord experience and providing some cashflow. But also getting into a new property for a low down payment (3-5%) instead of the full 20%, and you could house hack that with either doing rent-by-the-room or small multifamily or some other strategies... 

It would provide you a way to get into further real estate investing before that 10-month mark, with little risk involved, and if done right you will be living completely free, and making money on your current property!

Wish you luck on everything, and I am happy to chat more!