All Forum Posts by: Christian Albright

Hi I am looking to get into an investment property around July 2021 (house hacking). I was wondering what local lending institutions offer low percentage down payment loans? I know that I can qualify for FHA, but I would like to explore other options. For some background I have a good credit score 750+ (no credit card debt), a current income of about $45,000 annually (working to get that up),student loans of 13K and dropping, and plan to have about 20k saved for a down payment including reserves. My budget limit is 400,000 and I prefer a single family property. I am sure I forgot some critical information and can add more details as needed. Any guidance is greatly appreciated!

@Edward Kanive

Hey Edward,

I can qualify for PLF if I continue to work for my non profit but the time I would have to work for them wouldn’t make financial sense for the amount of money I owe, especially since (and I should have mentioned this before) I am getting an education award for the end of my americorps term of service which should knock my student loan principal down to ~13k.

@Chace Fraser

Hey chance,

Thanks for the tip. I agree I was thinking at the minimum three months in reserves before I even start. From there I’d save double the amount in reserves for the following three months after purchasing and then allocate a certain percentage to reserves every month thereafter (depending on age, size, and other details of the property).

@James Gleeson

Hi James,

Thanks for your input. I agree there are options, but I see the ROI working out much more in my favor if I choose to be aggressive. Thanks for the insight, I think I've made up my mind!

@Craig Curelop

Hi Craig,

Great to hear from you again! I’ve been reading your house hacking book, it’s been really good so far. Anyway I see what you’re saying. Without knowing the hard numbers I was thinking the same thing, but the numbers don’t lie and put it into perspective.

I currently don’t have a car payment and don’t plan on getting one until very late in the future. That being said I believe saving $1000 a month is very realistic for me even after student loan payments assuming I am already housing hacking. If I house hacked that would be my only major debt each month. I tend to live lean and am used to the college, no money lifestyle.

Thanks for your advice! Excited to get started

@Solomon Morris

Hi Solomon,

Thanks for the information. I actually planned on using a conventional or home ready loan with low down payments to avoid PMI. Although I haven't asked I am fairly confident that I could receive a loan (up to 5k) from family or friends to help pay for part of the down payment or closing costs.

As for your question about where I plan on living is either Denver or Boston (both expensive). I understand that you think I should wait but at the same time all the money I spend in rent is money that could be saved or put back into another investment. I also understand the self education part and the need to be ready but I’ve been hitting books hard and meeting with other people to build my network. I wouldn’t invest if I didn’t feel ready obviously, but I think that by that time I would be ready.

Thanks for the book recommendation! I’ll add it to my list, I’ve heard of it on the podcast, sounds great.

Hi BP,

I have about 20k in student loans that I’m due to start paying in September of 2020. I plan on having a job that pays ~60k a year by then. I have about 11k in savings and want to time it so I can start house hacking right away. Does it make sense to do this or should I pay off all my loans first to lower the amount of money coming out of my paycheck each month. It might help to know that I do paying off the loan amount asap (within 18 months of starting payments). Any advice is appreciated!

@Kata Walters

Thanks for your willingness to share Kata! Do you find that those class c areas and properties give you trouble? I know some parts of lyncourt aren’t the best.

@Robin Casper

Interesting. Never thought of doing interviews like that and finding a team in such a way. Makes sense though. Very cool stuff robin. Thank you for sharing

@Robin Casper

Hi Robin,

Great to know. Thank you for the info. Did you find it relatively easy to invest in the market and have a reliable team given your background in construction? Do you think it would be harder (or even possible) to make those connections from a distance having never worked in the area?