All Forum Posts by: Braeden Cook

@Curtis Rouse Jr thanks for the comment. I get what you’re saying about needing to run the numbers with us in one of the units, but that would only be for a year, so my thinking is even if we end up paying a small amount each month in “rent”, that unit would be almost all cashflow once rented out. But maybe that just isn’t a great deal and we should look for something with better cashflow. Granted this is all hypothetical at this point, but just trying to think through the possibilities. 

The plan is to buy and hold for the long haul, but only to live there for a year. 

As far as the SFH, unfortunately we aren't in a great destination area so it may not be viable. I would be more than willing if it made financial sense though. Thanks again and good luck to you in your RE journey

Hey everyone, had a couple quick questions about my plan. 

So I'm still in the learning and planning phase, but the plan is to house hack a small multi family for a year with an 3.5% FHA loan. As far as running the numbers on the multifamily, would you analyze with all the units rented or with you living in one? I assume you'd do both but obviously the numbers like cashflow per door and the CoC look much better with it fully rented.

We also have our primary residence, a SFH, that we would rent out for the year while house hacking. The numbers don't exactly look great on the house with the PITI of 1050 and the max rent would be about 1500, so using the 50% rule of thumb, likely to negative cash flow a couple hundred per month. I assume that would be acceptable for the year if it allows you to get a cash flowing mutlifamly? Just want to make sure I'm approaching this correctly.

Thanks in advance

A couple questions for the herd. 

If you are able to pull out more money than you put in, is that a no brainer or do you leave some in to ensure sufficient cash flow? That extra cash is also going to be subject to the mortgage interest rate right? If yes, it probably makes no sense to just keep that money in your savings but should probably be used for the next investment. Is that thinking correct? Now if your ARV isn't enough to cover the purchase and rehab cost, do you just have to use some of your own cash to finish paying back your short term money lender?

Thanks everyone 

@Stephen Kunen that's awesome man! So if you bought with conventional financing initially, what was your down payment? I'm assuming 20-25%? What was the LTV for the refinance? How much did your mortgage increase after the refinance?

@Jay Hinrichs  I looked up that quad and it does look doable, but yeah I was talking about Moses. Thanks though. More than anything, timing isn’t right for me as I’m starting a side business that will hopefully generate a fair amount of income that I intend to invest in RE. 

There are actually  4 parcels for sale in Moses, each with 2 side by side duplexes. It’s been listed over a year and they have dropped the price a few times so I wonder if someone could make an aggressive offer or  buy the lot of them for a big discount. 

Until I’m ready, I’ll keep learning and evaluating deals.  Also, I’ve read a lot of your posts over the past month and have learned a ton, so thanks for taking the time to contribute. 

@Chris Miller   There has definitely been a lot of new apartments going up, as well as some commercial stuff. That Wendy’s drive thru line was ridiculous. Are you still buying or just sitting on the sidelines for now? I’m wanting to house hack a small multi family but haven’t found anything that pencils out. 

Wenatchee is great and would love to buy a small multi family there, but it’s a little too expensive for me currently. I also happen to live in Moses lake, about 1.25 hrs away. I’ve been here 2 years and it appears to be growing, slowly.  Anyone have strong opinions or insight regarding investing in buy and holds in Moses lake?

Thanks 

@James Wise  

Not to hijack the thread, but you mentioned a 100% financed property not having a chance to cash flow. I'm looking to potentially house hack a small multi family with an FHA loan, probably 3.5% down. Obviously I would have to run the numbers to make sure it works, but that's almost 100% financed so I'm just curious about your thoughts.

Also curious about why you feel a negative CF property is still a good buy. Are you banking on future appreciation?  It seems that most believe you should buy a CF property and let the appreciation be the icing. I’ve read enough of your posts to know that you know what you’re doing, so just wanting to get a better understanding. Thanks!

David Greene just wrote a great article that goes over this in detail. I think it will clarify a lot of the questions you have. The link is below  

https://www.biggerpockets.com/renewsblog/brrrr-strategy-real-estate-investing/

Hey everyone,

  I'm a nurse practitioner by trade, and while I love my job, I don't love the time constraints and that I work 5 days a week just to get 2 off. I'd much rather it be the other way around. I've decided that I will no longer accept this and will do what I need to in order to create the lifestyle that I want for my family. I'm still trying to figure out my strategy, but I'm leaning towards focusing on passive income through small multifamily investing and would love to work my way up to apartments. Turnkey properties are particularly interesting, especially as a new investor.

   Also want to say how excited I am to be here and to have reached a point where I feel like I am finally ready to take action on something I've thinking about (real estate) for many years. I've been listening to podcasts, reading articles, and browsing the forums and have learned so much from everyone already. What once seemed so daunting has started to feel more doable. I went ahead and bought the PRO membership as a way to hold my feet to the fire and actually take action. I'm also amazed at how helpful everyone is in the forums. I assumed the experienced investors would be eating the young, but everyone genuinely seems to want to see others succeed.

  Anyways, just wanted to say hi and I'm looking forward to learning from everyone. I'm in central Washington state and would love to get in touch with anyone wanting to talk real estate locally or OOS.