All Forum Posts by: Christian Estrella

Hey everyone! 

As the title states, I am in the process of becoming a real estate agent in CT, I was wondering if any seasoned agents can share some insight on their experience of being an agent. Currently  I have a full time job making about 75K per year. I’ve been with the company for 5 years now which puts me at the top of the seniority list. I work 4 days (10 hours per shift) and I have Saturday, Sunday, and Monday off. This is perfect for me because I take Saturday morning classes until I reach the 60 hours required. 

I applied to 2 jobs in the same industry which is aviation, 1 job pays about 20K more and the other is the same pay but working for the Port Authority of NY and NJ. The downside to the PA job is that I would be working 5 days and each week my schedule is rotating, morning, afternoons, and then overnight. The other job which I didn’t do as good in the interview also requires me to work 5 days. Since both jobs are in the aviation industry weekends off are rarely a thing and the schedule is not a normal 9-5.

My question is basically, how long did it take you guys to become profitable enough to make a decent living, did you leave your current industry to pursue real estate, are you currently working a full time job, if so, how do you focus on being an agent?

Any and all answers would be truly appreciated as I am a bit stuck on where to go from here. I do think that real estate is the key to wealth, however, the PA job comes with a lot of security, benefits, pension and a lot of opportunities to do Overtime, basically I can make an extra 20K per year with OT. However, working so much OT I don’t think I would have the time to really serve any clients and focus on being a real estate agent. I would love to be an agent full time but not sure if I should pass on a good job working for the PANYNJ.

Thank you!

Quote from @John Alosio:

@Christian Estrella

Hey Christian,

Congrats on making your first move! You're already on your path to generational wealth through real estate. 

I would highly recommend trying to go with another muti-family house-hack. Use the owner-occupied loan products as many times as they will allow. This will boost your ability to scale much more efficiently in the beginning. Why not leverage your comfortability for a few short years in order to increase your portfolio with least amount of capital invested?
One issue that you need to keep in mind when going this route is "intent to occupy". Lenders will want you to justify how the new purchase will be a "lifestyle improvement" I.E. closer to work, more space (Growing family), + garage etc. 
If you buy a SFH next, you will most likely lose the ability to go back to low down payment options for any future investment properties.

For me personally, I made it through (2) duplexes before settling into our "starter home"(SFH) .

Purchasing a property every (2) years allowed me time to stabilize the property, add value, then refi out of the FHA loan. rinse and repeat.

Here's how it went down:

2018 #1 duplex FHA 3.5% down. My unit was 2/1 (1200sqft) Refied into conventional after 1.5 years
2020 #2 duplex FHA 3.5% down. My unit was 3/1 (1500sqft)
2022 #3 Single family home 3/2 (1400 sqft) with 5% conventional primary residence loan

hope this helps.

cheers!

Hey @John Alosio thank you for the reply. I spoke to a lender which basically gave me an understanding of the "intent to occupy" and just like you stated, he told me that if I buy a condo I would probably be unable to buy another multi-family to house-hack. I think I would prefer purchasing the second multi-family to househack and then focus on getting a SFH to settle in with the family to be more comfortable. I do agree that I should take advantage of the low down payment options while I still can. Thanks for the input will keep you posted!

Quote from @Theresa Harris:

You should be able to do 5% down on a duplex if you live in one of the units.  I'd avoid a condo if you can. While the mortgage payments may be lower and have a lower entry point, once you add in the condo fees...do the math as to how much extra mortgage you can get with that.  You could also look for a place with a legal suite and move into the suite.  Less space, but you'd still have a yard and short term, get further ahead by renting the top. Once your daughter is a bit older, move to the other unit...or back to the duplex you are in now.

Last summer when I was looking for a rental, I compared a higher end condo with a house.  Costs were a bit different ($250K vs $275K), but once I did the math the cash flow on the two was very comparable.  What's more, the difference was with the condo, more of the rent was going to the condo fees whereas with the house, it went to the mortgage.  I bought the house and it ended up renting for more than we expected.

Hi Theresa, thank you for the reply. I didn't really factor in the condos fees, nor the other HOA costs, assessments, and things that would be out of my control. I think I would rather put a 5-10% down payment and purchase another duplex to live in.

Quote from @Rick Albert:

So I sort of did the opposite. I house hacked a condo and then bought a house and built out the ADU. A couple of things to note:

1) 1 bedroom condos don't typically appreciate as well as 2+ bedrooms.

2) You have a 1 year old. You are going to grow out of that condo quickly.

3) What's the difference between having a two unit with tenants next door versus a condo where the unit next door is rented out? I don't agree that you have better privacy. Walls are still shared and depending on where the unit is I would argue you have less privacy.

4) Condos are great for starting, but have its challenges. If there is a roof leak, yes the HOA typically handles it, but you still are at their mercy and schedule.

5) Things come up with condos like special assessments, rising HOA dues, and changes in the condition of the complex. These are all out of your control.

I would recommend sticking with the duplexes and continuing growing that way. 

Hi Rick, thank you for the reply. I appreciate the new insight you have given me regarding condos. There are a lot of factors that aren’t in the owners control. I have been looking into ADU’s to see if I can possibly convert my garage.

Good Morning wonderful people of bigger-pockets,

Like the title says, I am currently house-hacking a 2 family property in Ct, I live in the second unit and rent out the first (2 Bd/1 bath). I enjoy living here as I finally have my own driveway, backyard, attic, and garage (luxuries coming from NYC). I know once I rent out my unit I would be able to cash flow about $500 a month.

I was thinking of downsizing and purchasing a condo to live in for about 2 years, the reason for this is that with my current salary and money saved up I can only afford to put 5-10% down payment on a condo valued at 250k or less. Which means I would have to owner occupy. Basically if I can reduce my mortgage payment on my condo by using the cash flow, I can continue to save money and in 2 years be able to purchase another property. I do have a wife and a 1 year old daughter so house-hacking into another 2/3 unit property doesn’t sound too appealing, however, we are willing to sacrifice living in a 1 bedroom condo for the time being (better privacy but smaller). The goal would be to save money, eventually rent out the condo, and then purchase another property. 

Another option is to continue living here and save money to purchase an investment property (would need to save minimum 20% down payment). I like the condo idea, as I am eager to start cash flowing and making use of that money.

Just wanted to throw this idea out there to see what other investors think, any and all feedback is appreciated. If anyone has been in a similar situation feel free to share your story. What steps did you guys take after your first multi-family purchase?

@Nathan Ruffrage Thank you, I think I am going to go with this idea, just to keep it simple.

@Dave Klein Thanks Dave, you aren't the first person to tell me about the fire exit from the 3rd floor.  I think this will also just completely kill this idea. 

@Mike Jay I think you are right, i am definitely over thinking it at this point. I do want to renovate it to make it look nice and clean, even if it for my personal use for now. And i do like the master suite idea. 

@Nick Barlow I am not going to go with the rehab to make it a separate unit, between the zonings, permits, and all these other factors. I do not believe it will be worth the headache. 

@Gaetano Ciambriello Thank You! Black Rock, Near Harborview Market. Are you local?

@Mike Jay I would have a contractor do the work. 

@Michael Plante Thank you, very helpful indeed. Now that you mention it, i wonder too, hiring a structural engineer to determine this sounds excessive..

@John Vietmeyer Does this mean if i wanted to use this space as a man cave or so, i shouldn't put heavy furniture, tv, tables, etc..?

Hey fellow investors,

Need some advice on how I can move forward with rehabbing the unfinished attic on my property and possibly maximize my investment. I am currently House hacking the second floor which has access to the attic which is currently unused and unfinished. The Attic spans the same distance as my unit, it is currently drywalled but it looks pretty old. The floors are also old and thin (a lot of noise between floors).  
Ultimately, i envision the final product as sort of a modern "loft" with wooden floors, open space, and possibly a bathroom or half bathroom.

I need advice on wether i should rehab the attic and make it a part of the second floor unit, or possibly attempt to convert it to a third legal unit. 

- If converted to a separate unit (Studio) i would be able to rent it for at least $900. Which would make me breakeven on mortgage payments, however this rehab would probably cost more money as i would have to add a kitchen/stove and a full bathroom. And maybe even a separate private exit from the apartment.

- If rehabbed and still part of the second floor, i am thinking, i would be able to market it is a 3 bedroom apartment which would increase the value of market rent by maybe $300 or so. Eventually i would move out and would rent out the unit i am in.

I am leaning more towards the second idea as this work would need to be done by a professional and I would rather not start adding water pipes and moving gas pipes around to make it a separate unit.

Any ideas and or suggestions to keep costs down and maximize my returns would be appreciated.

Also for those DIY handy - How would you tackle this project? 

-Floors? Im thinking Luxury vinyl tile. Should i do anything to current floors?

-Walls? Can i just paint over this old drywall? Do i need to sand down?

Thank you in advance!

Awesome post! Wish I saw this earlier as well. I was looking to invest out of state but not too far from my hometown, Queens, NY. I was first looking at NJ, Newark and Elizabeth specifically. I did not find what I wanted and so I changed my radius. I started looking in CT, and found a nice gem in Bridgeport. Now I am house-hacking for a year now.