All Forum Posts by: Joe Pearson

@Adam Swift , Yes, I’m including the rent in my unit, that’s the only way I’m seeing any sort of cash flow. I plan on depositing my “rent” into the business checking account that’ll be for the multifamily. The only way I could live rent free is if it’s a 4-unit multifamily, but that has a higher gate to entry.

@Jonathan R., Yes. If I had to liqudate all of my retirement funds I would be okay paying for mortgage, utilities and food for at most 6 months.

@Alan Grobmeier, If I rent the other unit I’m positive about $170.

@Isaiah Williams, Yeah, like Randy said, Wow. Thank you for the solid response.

Thank you everyone for the feedback! I think the best course of action is to get a SFH I can afford if I see a solid investment on the market this year, but either way I'm going to save up for 2 years to have enough reserves and an increased income by cutting student debt to afford a duplex/triplex.

One thing folks have mentioned is looking elsewhere, which is an option I’ve been contemplating. I currently have 2 emotional ties to the area: NETRA and family. NETRA is New England Trail Riders Association, so the thought of moving east to southern Maine or west to northern NY are options I’ve been researching. My family is in CT and southern NH, so around New England definitely makes them within driving distance.

Kyle,

Welcome to BP! Likewise, I am brand new to BP and this weather is getting me very excited to take my motorcycle out for a spin soon C=

I'm currently renting on the east side of Manchester and am aiming to buy a multifamily within the next 3 years, or so. Need to continue crunching numbers (weddings are expensive).

Good luck on your ventures!

-Joe

Hey Laura, 

Welcome to BP! Likewise, I'm very new here as well and also likewise, I first heard of bigger pockets thru the podcast. I'm currently a step behind you. I'm renting and hoping to get into a multifamily within the next few years!

-Joe

@John Nachtigall, In absolutely no scenario, except the unicorn one that involves magically dodging all of those possibilities, is the risk/benefit a reasonable trade-off, which is what I knew creating this discussion. My question is, how do I tip the scales to make the risk/benefit trade-off reasonable without a partner? Getting a foreclosure/203k rehab loan?

-Joe

@Richard Dale-Mesaros, I miss snowboarding terribly. I've stopped for the last couple years to save some money. A 4-unit is definitely more financially logical, but the price point to entry is well above my limit.

@Allison B., Perhaps if I had your experience I'd be more willing to take on that much risk, but knowing how little Iknow makes me very hesitant to jump into something where the initial numbers are not in my favor, for example, if I couldn't get 3 of those 5 bedrooms to rent within a few months. I've only been living in NH for 4 years, but as far as I can tell there's more money in long term rentals because a lot of people are renting and staying for longer periods of time than short term. 

@Ken Wicks, I agree on having a safety margin, I'm just trying to figure out if it's possible to get one without saving up or having a partner. I'd have the ability to force myself to get it done, but it wouldn't be pretty. 

I'm not putting down an offer on a house now, I'm asking the question of how I can FORCE this to happen now. If I can't or really really shouldn't, then I won't.

-Joe

@Damaso Bautista, Ah, that makes sense. I've only been looking at fixed interest rates.

@Account Closed (*squeals at the fact that you commented*) Yeah, and even more unpredictable with +100 year old houses. Tho, my sarcastic side wants to note that buying from a family member whose owned it for 50+ years is probably less risky.

All in all, I think now is an appropriate time to buy a SFH I can afford on my own and look into renting out a bedroom.

Thank you, all!!

-Joe

@Anthony Wick, No, you didn't miss the answer to that because I foolishly didn't mention it. I am pre-approved for a 270k mortgage and they are basing the 6 months cash reserves from my retirement funds and how much I make not including my fiancee's student loans. OOoo, I need to look into the home owners warranty.

No, assuming the idea of a home owners warranty from the idea of it and knowing the approx. $170 cash flow I'd get with a tenant I would be in the positive for the first 12 months.

-Joe

@Damaso Bautista, The loan adjusted up for appreciation/inflation while you were living in the home? 

I really want to buy a multifamily, but the dollars I currently have don't add up to where they need to be for the neighborhood I'm currently in.

I absolutely want to get in the game and understand the risks, but I think there's too much risk with my current plan for this year. 

There are a million ways, but what's the right way?

@Theresa Harris, My immediate goal is to buy a place to live in with the later goal of using that as a real estate investment. Yes, I have 3 plans drawn up to either buy a duplex/triplex, a single family home, or continue renting, pending on what comes available on the market over the next couple months.

@Darius Kellar, Indeed it would be, but I'd pose to him the question of what my plan should be to make it work this year.

Thank you, all!

-Joe

@Theresa Harris, I think I know the right answer, too, but I also know that getting into real estate with no money is possible, so I just don't understand how some of those methods relate to me. No, I'm not comfortable with no reserves. In the following order: sell retirement mutual funds, cash advance credit cards, withdraw from Roth IRA and 401k, get payday loans or something else.

@Steve K., I'm not assuming that I'll find an absolutely perfect property, I think there's like a 0.00001% chance of finding that. But, I'm theorizing here. I agree, $20k sounds reasonable.

@Greg Powers, Yeah, the average home I'm looking at was made around 1905.

So, knowing there's a book on how to invest with low or no money and a lot of people post about investing with no or low money, I just can't believe there's no way for me to get started with low money, I just can't tell which or if any of those methods apply. Well, perhaps the only feasible one is investing with a partner, but I need to do more research to figure out how or if those would work with FHA Loans.

@Jill F., Nope. I know a little and desperately want to be, but in all actuality I am not at this current time. 

Are you thinking of a foreclosure or rehab?

-Joe