All Forum Posts by: Cody Barna

@Jessica Walker if you plan on solely being a wholesaler then I wouldn't recommend getting your RE license, it just makes things more complicated. However working as a full time agent/broker definitely has a lot more potential financially in the long run if you work hard.

@George Zavala congrats on the pool business, I've been to SD a few times and I love the area especially coming from the east coast. I would recommend house hacking, but considering your rent is extremely low that gives you more options. Would it be possible to airbnb your current place?

@Juan Beltran no worries, it's definitely a tough call but regardless of what you do I'm sure it'll be a step in the right direction.

@Juan Beltran sounds like you have the right idea, considering you don't have enough money saved for a down payment. I agree that doing a cash out refinance would be ideal for this situation, especially if it allows you to purchase a house hack. If you were to sell your current home then you have to fact in taxes unless you've lived in it for at least two years, regardless I would hold onto it as a rental. You're at a big advantage seeing as it's a house you're familiar with, assuming you've done some level of repairs during the time you've owned the home. Do you have a lot of equity in the property? 

@Clayton Michael I would suggest taking some time to evaluate your current situation, would it make more sense to increase your income and continue saving for 3-5 years? Do you have a "secure" high paying job that allows you to save quickly and take on more risk? Single living at home with family or married with children and a mortgage? These are all questions that I would be asking myself to determine my best route. I'm not trying to discourage you from starting now, there''s plenty of ways to get started without having a huge cash savings.

@Jacob Stahl I believe the first thing is determining what your current situation is, both personally and financially. Then ask yourself how much risk your willing to take based on your desired result. For example if you have four children, a wife and a $400k mortgage, cashing out your 401k to buy a rental property may be to much risk. Compared to the single 20 year old who lives at home with their parents making $50k per year. Considering it's your first rental and you plan on living in one of the units, using an FHA loan may be your best option. Not only are the credit score requirements lower, but it allows you to control a high priced asset for very little money down. This will allow you to retain more money for reserves while learning the skills of being a landlord.

@Connor Pine retail and real estate sales, there are no prerequisites that's the great thing about REI.

@Samuel North welcome, it's nice to see other east coast guys on here! I would continue saving money and analyzing deals for the remainder of your lease, at that point you'll be ready when you find the right property. If you use a conventional loan to purchase something now, it would eat into your $30k savings rather quickly. Not to mention you still have your rent payment every month and any other living expenses such as a car payment, food, etc. However if your in a strong place financially and you feel like you can handle a few months of potential vacancy plus all of your living expenses on top of that, then finding something now might make sense. House hacking is definitely the best strategy for anyone looking to significantly reduce their living expenses. By the time your lease is up you'll have a nice cash savings allowing you to use an FHA loan and still have plenty of money left over in reserves. At the end of the day if you're able to achieve the same result but keep more money in your pocket, that'll allow you to scale even faster.

@Jeff Dixon if you plan on living there have you considered exploring the option of an FHA loan?

@Kaitlin Bagley I would say it really comes down to your current situation, if airbnb is working best for you in your market then continue doing that. If you're trying to transition into long term rentals and need ways to fund a deal then maybe finding a flip or continuing with Airbnb will generate enough short term cash flow. I like searching for properties that have the ability to be used in a variety of ways, good location and layout for short or long term rentals.