All Forum Posts by: Brian Mackey

Hello,

I have an off market deal on a duplex right across the street from me.  The seller and I have agreed on a purchase price of 288k.  The top unit is good to go, the bottom unit needs work, and there is actually a 3rd kitchen in the bottom unit, which I will close walls up to make this whole thing a Triplex.  This will be my second House Hack.

The seller does not want a realtor involved, and I want to do the transaction without one to learn the process.

THE QUESTION: IF I have to go the Seller Financing route, what would you guys expect to be a good set of terms?  I imagine once all the units are good to go, and without me living in it, I could collect close to 3000-3500 in rents.  I want to be ready with a backup plan just in case the Lender does not see it as a financeable property.  

Id like to put as little down as possible, I understand there would be a balloon, and a higher interest rate.  What should I look to offer to make it beneficial for both of us.

P.S. I have been pre-qualified and everything, so I can go the conventional route if necessary.

Thanks in advance BP Fam.

@Joseph Cacciapaglia

I see what your saying. I’m guess I’m counting the Airbnb income as all my own considering it’s paying for my living. Whereas if I owned a remote Airbnb/traditional rental, my only ‘income’ would be the cashflow (not including mortgage pay down, appreciation, tax benefits), after expenses.

To get 2400’s at 200$ a door I would need 12 properties. These are low numbers that I’m just spitting out, but I would need to come up with downpayments for 12 properties, and only then would I get the 2400’s.

Is a successful house hack just as good as getting the 12 properties. It’s not a question that has a real answer I guess, I’m just kinda throwing it out there to see what others think.

Hey so I was thinking about something the other day.  I currently House Hack, using AirBNB (Yes Covid has disrupted it a bit), but Pre-Covid I was covering the mortgage +1000's.  This equates to $2400 a month on average.

I got to thinking, I'm taking in $2400 a month and using it to pay for my mortgage and lifestyle, it's as if I have 12 doors at 200's a piece.  If that is the case is it actually even necessary for me to pursue purchasing more real estate?  I mean I'm looking all the time at potential deals, that will obviously add to my net worth if purchased properly.  But if they only produce 1-200 a door, is it worth all the effort when I've virtually got 12 doors in the form of the house hack?

I hope that makes sense.
  

@Mohammad Nur

Great work!!! Explained very well and all you need is solid base hits. We all like that home run deal, especially me, but it’s comforting to have a nice property that we both know is in the path of progress, and will appreciate in both value and rental price in due time!

Keep it rolling!!

Hello,

Looking to purchase my second house hack, but I’m a bit nervous about the large purchase.

The property is a fully renovated 3/2 that has two fully renovated studio apartments with garages for each directly below (Carriage houses). The whole property was remodeled and the quality is top notch. It’s also right next to LSU in a very nice area that will continue to appreciate.

The listing price is 449k, which is a 20k drop from what they originally had it at.

I would look to purchase, live in one of the studios, rent out the second studio traditionally, and AirBNB the main 3/2 unit. I figure I could generate more than enough to cover the mortgage and expenses.

This will be my 3rd house and would take me to close to 800k in mortgages. My other two properties cashflow 1500 after all expenses. The addition of this one should add 1500 more for a total of ~3k in additional income and I’d be living for free.

I’m guess I’m just nervous taking on soooo much debt. I’ve ran all the worse case scenarios and feel like I’d be good with reserves if everything hit the fan.

How do you guys come to terms with so much debt?

@Jaron Walling

Did you cash out refinance using an owner occupied loan?

@Peter Baudendistel

I’ve had my eyes on the Vendee program for a bit. Seems very interesting!!

House Hack...I do it now.  It's allowed me to save soooo much.  Ready for the next deal.

House Hack...I do it now.  It's allowed me to save soooo much.  Ready for the next deal.

@Daniel B.

Good stuff!! I’ll give this a look!