All Forum Posts by: Ian Jimeno

This looks like a sweet deal! I wish I had this when I started house hacking

Hi Andrea,

First of all, congrats! It looks like you're house hacking, so I'm stoked to see another budding investor in the industry :)

I'll assume you have a 30 year fixed mortgage on the home. Having that cash flow set aside in case of emergencies would be best in my opinion. If you're already setting aside a couple hundred for any capital expenditures, then you're financially looking good.

Putting the cash flow into the house may not be the best option; you're not going to be able to touch that cash until you cash out refi. And who knows when that might actually be, since you might not want to refi if interest rates increase to 9% or something.

I would try to find ways to improve on the home or updating things before putting it into principal paydown. Updating the home means more rent and possibly a higher appraisal.

Hope this helps, let me know how your journey goes :)

Just signed up for it! Stoked to see y'all there

Hi Michelle!

First of all, glad you're looking into investing in Real Estate. There is a lot of benefits to owning property (cash flow, tenants pay your loan, it's a physical asset, etc.), but I think you're running into the hardest part of investing in Real Estate:

There are a lot of options to invest in RE.

This is either a blessing or curse, and your case, because there are so many options, it's a curse haha. To navigate through that trouble, pick one, figure out the numbers behind it, and COMPLETE the goal.

For instance, if you really want to take care of your kids (and have them learn the business firsthand), I would recommend finding them a house hack. You can put low money down, they learn to go through lease applications, how to manage tenants, etc. I'm currently looking for my 4th house hack, and honestly it's the best move I've ever done!

I think you should think about what to do with the second home, especially if it's worth $500k right now. Can you HELOC it and use the money towards a down payment on a rental? If so, in which market do you have an unfair advantage? I always ask my clients "Where do you have an unfair advantage?" so they don't have to start from the drawing board (which market do you know personally? Do you have a realtor/property manager there already? Are your friends investing  there?).

Be conscious: If you sell your property, that's a gnarly capital gains tax. You should educate yourself to get a 1031 exchange or invest in opportunity zones if you sell that home.

Hope this is a good starting point! Let me know if you have any other questions :)

Ian

Hi Jacob!

Welcome to the world of Real Estate Investing! I often tell people the blessing AND curse of real estate investing is "There's so many strategies to invest in real estate".

Blessing: Options are limitless, you can get creative, full control over your asset

Curse: Analysis paralysis, overthinking, internal regrets

In your situation specifically, who can be your potential partner? Whoever it might be, whether friend, family, or person you trust/trusts you, see if you can get somewhat favorable rates with this person. Big thing is: Are you able to give them the returns they're looking for as an investor?

What's nice about the primary mortgage and purchasing it outright is that they're only using the debt play; the bank has no equity in the deal (in most cases). The immediacy of it is nice as well, I'm on my 3rd house hack working with 2 mortgages from the bank. I can safely say that getting in the game is most important, and if you can find a way to mitigate that mortgage as much as possible through rents, short term rentals, etc., then that's a win!

Not a fortune teller here, but I don't foresee interest rates going down any time soon. My buyers are seeing some huge upsides at the closing table, with sellers repairing or replacing items in the house or giving $5,000+ in seller credits! If you find a place in a desirable area and know it's a solid location, go for it with whatever financing makes sense to you!

Best of luck and let me know how it goes @Jacob Northfield!

Thanks @Eric Yu!

Fantastic strategy, @Warren O. It's the best way to get started, which I'm sure you've noticed. Make sure you keep in mind the STR laws in Arvada: I want to assume you've done your due diligence, but it's good to be on the safe side!

Also, I'm operating the same house hack in the Westminster/Sherrelwood area.

Stoked to see another house hacker in the works! Let us know how it goes!

Hi Gilda!

Glad you're looking into investing, especially house hacking! You're making the right moves in getting pre-approved and working with an agent, and from what it sounds like, you should find an agent that has investment properties of their own, has done a house hack (or has worked with several house hacking clients), and is knowledgeable in underwriting deals for house hacking. Hopefully you haven't signed an Exclusive Right to Buy with them already...

A great place to start is to click on the "Find an Agent" at the top of the Bigger Pockets page. It'll help you find an agent who understands the ins and outs of real estate investing. You need a guide, someone not afraid to tell you that a certain path is a good/bad path. I do this a lot for my clients, and even though they're backing out from certain deals, I know I'm guiding them in the right direction!

Knowledge is power, yes, but too much analysis can leave you paralyzed from fear of the unknown. Find an agent who has done it before! If you're ever in the Denver area, I would love to help you out and understand your goals.

Cheers and best of luck!

Hi Adam!

That would be sweet! I'll send you a DM

Hi y'all!

After my third house hack and passively investing in multifamily syndications, I want to get into commercial real estate, specifically multifamily. I heard Rod Khleif's convention is coming to Denver at the end of July, and I just signed up for it.

I wanted to get my feelers out there and chat with like-minded people who want to join or have signed up already. I'm a real estate agent and investor here in Denver, so even if you're not interested in going to the convention, let's chat!

However, if you ARE going, let's hold each other accountable and learn this industry together.

Cheers

Hi Dana!

You'll have to be more specific, are you talking about underwriting? Are you talking about which markets to invest in? Help us help you by telling us some details or information you already know :)