All Forum Posts by: Eugene Cho

@David Stone

Hi David, would definitely like to connect and talk more about any potential opportunities!

@Erich Bubbel

Thanks for your reply!

It’s a nicely priced house for the area. But with all the money and work that we are putting into the property our out of pocket will still be around $2500. Alternatively I could buy two cash flowing properties (say $50k each that cash flow $500/month) in a cheap area and use that income to supplement my rent. I am trying to figure out if all the effort and money is worth it to live in Montlake/Cap hill and still pay $2500 month while having all my cash tied up into that property that I can’t do a cash out refi. What do you think?

Hey @Seth Rose thanks for letting me know. https://drive.google.com/file/d/1hz-V-Sp7Ma1pFDSGVgg74z4CU9lElZBO/view?usp=sharing try this link. If it doesn't work try copying and pasting that URL into a browser. I've been looking for a few weeks and am starting to look elsewhere due to the high cost. What are you doing for your primary housing? Do you house hack?

Im reading David Greene's book on the BRRRR method and had a question. Let's say I have some cash and want to buy a property for$50K + $15K for rehab (total $65k). In 6 months I want to do a cash out refinance. Let's say the appraisal comes back at $90k and the bank loans me 70% of the ARV which comes out to $63k. I now have less cash than when I started and only have enough cash to do 1 more house. If I keep doing this I'll only have enough money to buy 1 property in series. How do I grow exponentially? Brandon Turner always talks about "the stack", growing exponentially year after year. If I only have enough cash to buy one property at a time how do I get enough cash to buy 2 the next year, and 4 the year after that? I am also reading Brandon Turner's book on low and no money down investing and I'd like to avoid using hard money or an FHA loan (which would defeat the purpose of BRRRR investing) and only use the cash I currently have. Thanks for your help in getting me started.

Hello BP Investors, I am trying to get started out on my first deal and need some guidance. My wife and I recently moved to the Seattle area and are looking to buy a property that we can house hack/Airbnb. We came across a property in Montlake that is in pretty bad shape, has foundation issues, and would be a complete reno. I ran the numbers assuming we rent out the basement and live on the main floor. Our monthly out of pocket would be $2468 to make up the difference. Can someone please take a look at this analysis and let me know what you think or if i'm missing anything? Here is a link to the doc.

https://drive.google.com/file/d/1hz-V-Sp7Ma1pFDSGVgg74z4CU9lElZBO/view?usp=sharing

Does this deal make sense? based off these numbers, I dont think it does. Our agent, who has done several flips before, estimates the rehab costs to be $200-250k. So much of my cash would be tied into this house, plus FHA loan, that I wouldn't have enough to buy a second property, which I would like to do in 6 months or less. Here is my dilema: if I buy a property using either an FHA or conventional loan and fund the rehab myself, all of my cash will be completely tied into my first property leaving no room to cash out refinance to buy a second property. So what do I do? Rent in Seattle, and cash buy properties in cheaper areas? What are people doing for their main housing? Thanks for your input.

Hi BiggerPockets community, My wife and I recently moved to the Seattle area and need help strategizing on how to get started. We would ideally like to purchase our first home and do a full house hack and continue to purchase SFH using the brrrr method but can't seem to get past how to go about purchasing our first home. The properties in Seattle and near where I work, Redmond, are all around 500K-750k and too expensive to do a full cash buy or even a 50% hard money 50% cash deal. I have some savings but I don't want it to get tied into the house since our desire is to buy a second property using the brrrr method in 6 months. If we want to buy our first house we would have to do a 3.5% FHA loan for the property and rehab. But then where do we go from there? Since we did an FHA we wouldn't be able to do a cash out refinance like the brrrr method suggests. I am finding that the brrrr method works if you already have a house, AND have cash to buy your second property. But what if you don't have a house yet? What is the best way to get started so that I can be setup to buy my second property in 6 months? Thanks for the advice!

Purchasing our first home in the Seattle area and am looking for a duplex or basement conversion. Just went to the open house for this property and need advice on whether on not it’s a good investment property. The plan is to live in the upstairs unit and rent out the bottom. Location is good but it’s right on a very busy street with parking around the corner, no parking on the same street. Our total all in budget is around $800k. The property itself is listed at $750k. So the price is definitely high and leave little room for our renovations. What do you guys think?

2571 E Montlake Pl E, Seattle, WA 98112

https://www.zillow.com/homedetails/2571-E-Montlake-Pl-E-Seattle-WA-98112/49101802_zpid/

Hello BP community! Here is my intro (https://www.biggerpockets.com/forums/55/topics/704046-new-to-the-seattle-area-looking-to-purchase-first-home). 

I am looking to purchase a home in a desirable area (East of 5, North of 90) with a large number of rooms, and a sizeable basement. I am currently at an Airbnb where the owner has converted the basement and main floor into its own unit, and lives in a converted attic. I am looking to do something similar and have found a property in Central district for about 800K with 6bd, 3 ba, and a large basement. I am brand new to the area so I'll be looking for real estate agents experienced in rehabbed rental properties, mortgage brokers, contractors the whole bit. Looking for any pointers and would love to start networking! 

Hello Bigger Pockets community! I joined several months ago but wanted to re-introduce myself as I've recently moved from San Diego to the Seattle area. You can see from my previous post (https://www.biggerpockets.com/forums/55/topics/607506-mechanical-engineer-from-san-diego-ca) that I'm a mechanical engineer interesting in rental properties, more specifically live in flips, or house hacking. Am looking in Cap Hill, Central District, North Beacon hill area. I am currently at an Airbnb where the owner converted the basement and main floor into its own unit and lives in a converted attic space. I am looking to do something similar. Would love some pointers and would love to start networking! Nice to meet everyone. 

Hi BP community! My name is Eugene Cho and am currently working as a Mechanical Engineer. I grew up in the Coachella Valley and moved to San Diego in 2003. I have always been somewhat interested in real estate investing, but like most people, didn’t know how diverse and flexible it could be. My interest and education on real estate investing took off when I started listening to the BP podcasts during my daily commute to work. I found myself getting more and more pumped up to get started after every show. I’ve been listening to the podcasts for about 6 months now and I finally feel that I’m at a place where I want to take my first steps towards purchasing a property. I’ve picked up several books frequently mentioned on the BP podcast, including, The Book On Investing in Real Estate with No (and Low) Money Down. I’ll also be attending my first REI meet up in San Diego in about two weeks. I’m really excited to learn more, not only through the podcasts, reading, and others but through my first deal. I look forward to meeting and getting to know the community here on BP. -Eugene