All Forum Posts by: Carl Davis

I agree with the others. The world of investing is large and full of different paths you could take. I usually also suggest house hacking because you can learn to manage your own assets before scaling and you can decrease your expenses. 

There is no right or wrong way to start the important part is that you start and stay consistent.

Quote from @Jalen De Leon:

Quote from @Carl Davis:

@Jalen De Leon

I was also stationed at DM until about a year ago and love the Tucson market. I have a STR there that used to be my primary residence and it does fairly well.

 Oh nice! I was with the 355th CES when I was stationed there! Would you recommend buying property over there? I'm pretty familiar with the area and have a few friends that have rentals there as well. I also noticed some price cuts in that market. We can get more into detail about this if you'd like to get in contact? 

 @Jalen De Leon of course I'll message you.

@Jalen De Leon

I was also stationed at DM until about a year ago and love the Tucson market. I have a STR there that used to be my primary residence and it does fairly well.

Quote from @Michael Kundrat:

Quote from @Carl Davis:

Quote from @Michael Kundrat:

Quote from @Bernardino Graziano:

@Michael Kundrat

$1000000 to collect a little over $4000 in rent a month? DONT DO IT!!!! That’s a terrible return on your investment. That’s my 2 cents.

 LOL agreed - and its not even close to $4K, its like $3,200 haha. Thanks -

Is there anything that I could be missing or not thinking about related to potential upside/development of the surrounding area that could continue to drive prices higher for 'speculating' on the building? thanks!

If this was going to be a BRRRR maybe but what you're describing doing IS house hacking. Generally the whole point of this strategy is to purchase a property with little money down utilizing primary residence loan products. If you have the capital why not buy something functional in the area?

when I was describing house hacking earlier I mentioned SFH's with mother in law apartments. These rent just like duplexes but are generally less expensive and can be more desirable for potential tenants.

 Is that like a basement apartment that people often rent out as well?

Yes, I would treat this likely as owner-occupied house hacking then - although not sure if I would do likt 5% down or more to reduce the mortgage, like do a conventional 20%.

That is correct. It would be the same setup you are living in currently except not split utilities I have helped others do this and done this myself. Much better option compared to living and investing in a 100+ year old building.

Quote from @Michael Kundrat:

Quote from @Bernardino Graziano:

@Michael Kundrat

$1000000 to collect a little over $4000 in rent a month? DONT DO IT!!!! That’s a terrible return on your investment. That’s my 2 cents.

 LOL agreed - and its not even close to $4K, its like $3,200 haha. Thanks -

Is there anything that I could be missing or not thinking about related to potential upside/development of the surrounding area that could continue to drive prices higher for 'speculating' on the building? thanks!

If this was going to be a BRRRR maybe but what you're describing doing IS house hacking. Generally the whole point of this strategy is to purchase a property with little money down utilizing primary residence loan products. If you have the capital why not buy something functional in the area?

when I was describing house hacking earlier I mentioned SFH's with mother in law apartments. These rent just like duplexes but are generally less expensive and can be more desirable for potential tenants.

Trust me I get it I'll be 28 this year as well and wouldn't prefer doing it but it's allowed us to scale much more quickly than we would have been able to in the last few years.

You can just PM me the address and that should be sufficient.

I think if you want to get into the game this isn't a good first property to start with. I'm an agent in the area helping a few clients find SFH to house hack and there is much more upside to those.

Like you said it seems like he may have a pretty high price given the condition of the property and that may be a pipe dream for him but he may not realize it. Sometimes it takes a very long time for a property to sit on the MLS with a lot of the same feedback for the seller to finally understand how much people are actually willing to pay for it.

If you send me the property I can run a CMA to see what I think the property is actually worth given the condition as well.
The best decision for you in my opinion would be to find a SFH to house hack that is in much better condition. If you are new this is a great way to learn to landlord and you'll be cutting your expenses.

If capital isn't an obstacle for you this will keep more money in your pocket earlier and allow you to scale more quickly while learning through a safer investment. You can find something relatively turn key in the area instead of having maintenance issues every couple of weeks that deter you from investing further and sucking out all of your capital.

Just my opinion.

I'm active duty Air Force currently and also a realtor. I'm separating next August and hope to be in a really good position by then because I started in the industry about a year and a half out of my DOS.

Some of the best advice I can give is for you to find a broker that supports you and is responsive when you need them. Having a mentor or someone to help guide you through specific situations is very important in my opinion.

In the military we are always given work and told what to do constantly. In real estate it is quite the opposite. You need to remember when you start that business will never fall in your lap if you aren't actively trying to create it. Make meaningful interactions with people, be genuine and make sure they all know you're the go to person now for real estate.

It is difficult to cash flow currently but not impossible.

The property we just fully rented cash flows pretty well but it was a house hack that we lived in for a year.

Like the others said, unless you find a pretty good deal somewhere, you'll be waiting for about a year or so at least to start to realize your gains in your investment in the area.

I've also done something similar with our VA loans. There are also other zero down loans for primary residence through navy federal at a higher interest rate so you can keep house hacking.