All Forum Posts by: Chris Davidson

@Dan MacDonagh The difference between now and end of the year won't really matter 10 years out. However time in the market is going to make a bigger impact than anything else. If you aren't going to be living in a area for awhile find an investment and keep being nomadic, if you are trying to increase saving and ready to stay somewhere for a year or two do a house hack. If you maintain your income and savings rate you will be fine if you invest. Just start sooner than later.

@Garrett Pettit you do you, but partnering on a house hack can be messy. What do you do when they want to refi, sell, or push rents up higher. Short term it looks good, but you now are partnering on housing. Unless you expect your financial position to change rapidly you could be setting your self up between a rock and a hard place. 

If you have the time, knowledge, and energy partner on a straight investment deal where you are doing the work and have a capital partner. Have multiple exit options on any deal.

@Account Closed Look outside the numbers. While REI is a lot of numbers it also includes real people who make really irrational/rational decisions. While optimizing space and packing people in house might make financial sense, it goes against societal norms. You would expect higher vacancy, repairs, and management cost. While you might find someone who would stay there, it might not be the tenant you want.

While people hate how much things cost, I feel most people aren't ready to up end their lives and go back to dorm/ communal living. There is likely a market for it but not on as large of a scale as traditional multi family.

 If you have been using a Calculator to help with the deal analysis after you get the hang of it and that you aren't forgetting anything  I would recommend making a abbreviated excel sheet to run numbers even quicker, and help you understand what the numbers are actually doing.

If you don't know how rates, rents, taxes, and etc.. are actually impacting the deal it will feel like winging it. Just look at more properties and don't worry about finding a good deal focus on really understanding the numbers. 

Finally if you can get a local investor who has been operating the style properties you are looking at see if they can share their numbers to give you a better idea on the actual cost of insurance, repairs, vacancy, etc...

Keep after it!

@Sean Sullivan how many title companies have you talked to?

@Glory Mace the market determines prices of houses, as well as lending. If you are looking for low cost know your rate is going to be higher, and if you are looking for a lower rate your cost is going to be higher. The only way this isn't true is when someone/ agency subsidizes it.

Best of luck! 

@Dan MacDonagh Either way down 84 and you can get SMF for 300k. It really comes down to the terms and rates. IMO I like conventional better, but currently FHA seems to have some really good rates if you were looking for a long term hold and not doing a value add trying to refi.

If you are moving to a market for price just find a place you want to live and can afford. For that it all depends on what you enjoy doing. If you love fishing I wouldn't go to the desert, where as if you hate the rain might be a great place to be.

Finally work on mindset. It seems like you are stuck in things are expensive I can't afford it I need cheap. With 25k already saved up and saving 3k a month you can afford more than a 300k place, but you have to find the line you are good with between sacrificing living conditions and investing. 

Keep after it!

@Asim G. you are asking on a REI forum so guessing you have interest and desire in REI and looking for the path you want. But what are your goals. Are you wanting to leave your job in 10 years, or do you plan on building the most wealth possible?

Budgeting is the most important as with that kind of income it is easy to not notice small things. In my opinion cashflow will likely do little for your life right now as the cashflow from your rentals are less than 5% of you monthly income now. I would focus on growth areas and more passive investments to free up time for kids and work. Syndications can be great, but I like to have more say over my investments. House Hack in your market will likely be the biggest impact. It doesn't even have to be a multi family it could just be a live in flip type property that you turn to a rental or sell off once you move on. If you have funds left over I would look at grabbing more rentals that are in A - B markets that will cashflow heavy in year 5-10 and have more upside than cashflow strong markets year 1 since it likely won't make any impact on your life style.

Way to crush it!

@Sam Malik there are options. Reach out to some local places, or lenders on here. @Grant Schroeder had a 10% investor loan program which I think you could occupy it if you wanted but could do 90LTV investment.

Best of luck!

@Donald Dooley creative finance is a great tool, but IMO investing without cash or access to cash is dangerous. Repairs happen, things happen, and cash is the tool to get out. A lot of creative deals now are touting paying above market but with below market terms. This can work out if you have the run way and the market picks back up, however if you don't have the run way you are in a bad position. 

Best of luck excited to hear how the book is.