All Forum Posts by: Erich Bubbel

Rockwell institute online is what I would recommend. It not too expensive either.

Erich

@Eugene Cho

I would choose the two cash flow properties and keep renting if I were in your shoes.  Your risk would be spread out and you would be cashflow positive. 

@Eugene Cho

Also, your property taxes after year two will be much higher then what you have on the spreadsheet. 

Erich

@Eugene Cho

For that area, that’s a really good price. From what your spreadsheet is showing it doesn’t look all that bad for your monthly payment you would be left with while being able to live in that area.

With how much you are putting in to fix it up, this would have to be a long term hold for you. Probably a good idea not to bank on major appreciation for the next few years. 

Yes. You can start investing now which is the good news. If you are willing to invest in multiple unit which it’s sounds like you are open to it then if you owner occupy a duplex, triplex or four unit, you can use the income(from other units) to help you qualify for a larger purchase price. 

Since this would be your first buy. You would also be able to use FHA financing which means you could get in for as little as 3.5% down.

You have plenty of money to start but yes finding the right deal is the tough part. I would recommend talking with agents and get them to send you over deals.

@mathewbaltzell has a great point. 

With commercial real estate in most cases the income on each property will dictate a majority of what the bank will lend on. 

For example. I handle multi-family and if a 5unit and up property is underperforming then it could take a large amount for a down payment to buy a property. 

The best way to start is to come up with the amount of money you would be interested in investing and call a broker in each type of CRE (retail, multifamily, etc) in the market you prefer so they can start sending you deals. That will ultimately allow you to firm up you plan.

Erich

Great question Michael.  If you are trying to house hack then it might be difficult to get into a property right out of the gates that you break even on.(might have to bump rents after you buy) If you are looking at a 2-4 unit that is close to work and is a nice area,it might be worth it to buy a property where you only have to contribute a little every month($500-$1000)

In the general scheme of things here in a high rent/property value are. If you can buy a place and have the other units help pay down the mortgage while allowing you to live in the building for less then what you would pay to rent elsewhere; that’s what I call a win. 

It’s just another way to look at things. Hope this helps.

@Matta Nguyen. If you have the money to purchase the 4 unit, I would recommend going that route for your first investment because if one tenant moves out you won't fell the "pain" as much as if a single tenant condo were to go vacant.

It's a great idea to have an expert walk through the property with you on anytime of investment  but if you cannot get a contractor before you make the offer most likely you will still have some time during you feasibility period to get that done.

@Hector Guevara Yes it is all possible. But keep in mind when it comes to setting goals especially one like being financially free by 25, you will have to reverse engineer what it would take to get that done. For example: buy a property every year until your are 25. Then you will have to reverse engineer "that" goal. For example: sell 5 million a year in Real estate at a 3% commission which would be $150,000 in commission... and so on.  Don't hesitate to reach out if you need help with that.