All Forum Posts by: Hannah Taylor

Investment Info:

Condo buy & hold investment.

Purchase price: $313,000
Cash invested: $20,000

2BR, 2.5 BA Condo. Currently primary residence but will be converted to a short-term and mid-term rental in the upcoming years.

Hi @Lance Stokes, I used Bank of America to finance my first home purchase 2 years ago.  They were offering the following:

Down Payment Grant - Up to $10K 

America's Home Grant Program - Up to $7,500 in closing costs

I'm not certain if they're still offering these grants or not, and what state they're valid in. I bought in Colorado.

The America's Home Grant Program is dependant upon the location of home. Homes that qualify would need one of the following traits:

1. Home is in a low-moderate income neighborhood based on the US Census, 

2. Your income is less than the average county's income.

What market are you in?  As I mentioned, my company also provides up to $6K in rebates back to the buyer after closing and we're in a number of states!

@Peter Morgan finding a selling agent with experience and knowledge of the market is a must. I work for a modern discount brokerage similar to Redfin (called Trelora) and the advantage is that my ONLY job is to list properties, making me an expert in the market. My teammates ONLY draft/negotiate contracts or execute marketing, making them experts in their job function. So you’d be getting too-notch full service for a flat fee, which is pretty attractive to investors that are doing multiple deals a year. In Today’s market, anyone can sell a home, but working with a team that provides top notch service at a discount so we can focus on YOUR NEEDS and not our commissions is our goal. I’d encourage you to pursue Redfin if your market is hot right now, as savings on commissions could be key. Check out our company, Trelora, online to see if we’re in the market you’re selling in as well. I’d love to help you along the way!

Hi @Taylor Thompson.  While you may not find a loan for only 1% down, you may be able to acquire grants that will help lower your closing costs or down payment.  For example, my lender was able to give me $18K in grants which brought my closing costs down to less than 1%.  Additionally, I work for Trelora, a full service modern discount brokerage that provides cash back rebates to buyers at closing.  Therefore, if you work your cards right, you would have very minimal closing costs!  I’m happy to chat more if you’d like to hear about what Trelora can provide. Feel free to message  me here!

Thank you all for your insight and perspective.  

@Cole Simpson, I agree that working with investors is incredibly important.  Given the discount brokerage's low realtor fees, I think the likelihood of working with investors may be higher with that position.  

@AJ H, great point about alternative methods to fund investment properties. I have been narrow-focused because I am exclusively House Hacking and only have 3-5% to put down, but I agree that I could find alternative methods if I get creative. Given the expense of the Denver market, I may need to get very creative in order to find something!

@Jon Kelly, you're right, I was decided and then doubt crept in.  I think I will give the Discount Brokerage a 6-month trial period to see if it is helping me achieve my goals, and if not, then I have a great alternative.

@Tucker Cummings, Thanks for sharing your story. My goal would also be to have my real estate investments/rental income replace my W2.  Therefore, I think you sealed the deal in confirming my decision for Option #1. 

Much appreciated, all!

I currently own my first House Hack and have a goal to purchase my second this year.  I got my Real Estate license in October and began working on the side in an hourly position showing homes with a modern discount brokerage, with the intention of learning the market quickly and networking with other investors.  My goal was to purchase a second House Hack in 2021.

I was offered a full-time position as a Listing Agent with the modern discount brokerage, which would provide me commission, salary, and benefits.  This position would allow me to receive a second mortgage this year, as I will still have a salary (albiet a lower salary than I am currently making in my present marketing job).  The disadvantage of taking this role is that I would not have the unlimited income potential of becoming a traditional Real Estate agent with a brokerage that has a robust training/coaching program.

Alternatively, the decision to move forward as a traditional Real Estate agent would likely deliver a much higher income (~$60K/year more during the first year), but this income is not guaranteed and I likely would need to put my investment goals aside for 2-3 years until I have proof of income to receive a second mortgage.

For context, I have student loans and a substantial first mortgage, so it could potentially be adventageous to take the traditional RE role and pay off debts before purchasing a second property.  However, I believe over time the second property would appreciate substantially due to the market (Denver), but likely wouldn't cash flow for the first year or two. Both options have no guarantees and associated risks.

Would you:

1. Take the salary at the modern discount brokerage and purchase a second property

2.  Take the traditional route and become a Real Estate agent, putting property purchases on hold until you have 2-3 years of proof of commission?

@Daniel Hyman thank you!

@Chris Freeburg thank you very much for the recommendation, I will reach out!

@Bill Hampton thank you very much for the advice. I agree that an annual accountant is critical. And yes, with house hacking, things can be complicated. Much appreciated.

Looking for an accountant and RE Lawyer with experience in house hacking.  I have one SFU and hope to grow my portfolio.  Accountant would be needed to provide guidance on bookkeeping/taxes.  Lawyer would be needed to review existing and new leases.