All Forum Posts by: Cody Barna

I wouldn't let the fact that you still have an active lease until January deter you from moving forward if you find a great property between now and then. On top of that the entire closing process from the time you put in your initial offer to the day you receive the keys will most likely be a month or two. At that point you could try to fill the unit you're renting with a short term tenant, if your building allows for that. Even if you can't keep it rented the entire time it would still help to offset your monthly payment. Another option is ending your lease earlier, I wouldn't do that unless the cost involved made sense based on the returns you'll receive from the property you have lined up. That's just my opinion on the situation, I would be interested to hear what others have to say.

I think most of us can relate to that feeling during some part of our RE investing journey. I like to compare my current situation to the worst outcome possible if I purchase an average deal, in most cases you'll end up being in a much better place financially in the long run regardless of risks involved. I believe it's more risky to remain stagnant and continually make excuses about why you can't find the perfect property. At the end of the day breaking even on a house hack is a lot better than paying thousands in rent every months, that's just my opinion.

If I had $100k available to use strictly for real estate, I would start by purchasing a 2-4 unit property using an FHA loan that needs a moderate amount of cosmetic work, ideally something I could get below market and add sweat equity too. Considering that $100k in my market would be enough to fund the down payment and all of the repair costs. Since interest rates are extremely low right now I wouldn't refinance the property instead I would continue to build equity in that property while house hacking it. Using the money I have left over from the first deal I would purchase a second 2-4 unit ideally something that I could BRRRR and later use the equity that I pull out to fund the purchase of a third property. If need be I could tap into the equity from the first deal to fund my renovations on the second property, however I would prefer to leave that equity as a safety net incase anything big comes up.

It's a simple concept yet so many people never stay focused long enough to reap the rewards that will come. You're living proof that with he right strategies and a good mindset anything can be done. My goal is to be in a similar position by the time I'm in my 40s, thank you the inspiration Ehab!

Thanks Darius, you touched on some really good points. If I decided to pursue it I would defiantly speak with some local property managers to get a more concrete number for that specific area. 

Hi Everyone,

I'm currently in the market for my first house hack, a 2-4 unit in a desirable part of the city. I would like to find a deal that I can purchase for slightly below market value that needs moderate cosmetic work. I'll do my own repairs while living there to create initial equity in the property. Later allowing me to pull money out of the first deal to provide my down payment for the second property.

I've recently come across a newly built duplex that's in a decent part of town, rents in that area range from $1,500-1,800 per month. The list price of the property is $395,000 (top end of my budget) however considering it's new I'm assuming I could attract a high quality tenant for top end rent.

I would really appreciate everyones opinion on this topic considering you were in my shoes. Thanks!

It's definitely an interesting question to think about considering the current situation. Similar to what others have mentioned I believe there's many different factors that dictate a persons living situation. However I think determining what a specific area (night life, restaurants, activities, etc.) has to offer is more important to most people rather than basing their decision on the cost to rent or own a home there. Which would mean even if they were able to start working remotely post Covid-19, most people would still choose to live in the same location based on the factors above. Not to mention it may put the average person in a better financial position if they're able to reduce one of their largest expenses being transportation.

I was born and raised in New Hampshire, there's definitely parts that can be beautiful espcially if you travel up north towards Canada. If I had my pick though I would live in Sydney Australia, hands down the most beautiful place on earth!

Thanks for the local insight Jason it's extremely helpful to get information from investors who know the market.

Thanks John that’s a really good point!