All Forum Posts by: Jacob McMahon

Thanks for the advice Brad! 

Accept inc is a company that only operates in Colorado right now, but they will put up a cash offer for you. Last time I checked they do not service FHA loans though, so I don't know if I will choose to work with them anyways.

Hello all, 

It has been some time since I posted last, but I have spent that time saving money for a downpayment on my first house hack, building my credit score, reading books, listening to podcasts, and networking. I am now ecstatic to say I have a down payment saved, a general idea on what I am looking for, and I am ready to get the ball rolling on my first house hack. I am looking to buy a 3-4 bed property in Fort Collins, CO and do the rent by room house hacking strategy. It has become clear to me that one of my biggest challenges I will face investing in this market is competing with out of state cash buyers, who are currently paying 50K-150K over appraised value to move to Fort Collins. I am currently waiting on an email from Accept Inc. which was recommended to me to help improve my chances of winning a deal, but while I wait I was wondering if anyone has advice on how to make my offers more competitive. If you have any advice from an investor's perspective, or resources to help compete with high cash offers, please feel free to PM me!

Thanks, 

Jacob

Good morning all! It looks like I am on track to get into my first house hack by dec 2021-mar 2022. I could probably make it happen way sooner, in which case I would rent out all rooms, and have one room under a 6 month lease so I can move in when my current lease is over. Does anyone advise against this? I would have 2-3 tenants on a year lease and 1 on a 6 month so I can replace them when my lease is up.

Thank you!

Jacob

Thanks for the timely response Blake! I am definitely going to check out James Orr's page today, but I am curious when you say a low money down owner occupant loan will get my portfolio started the fastest. My understanding is that banks require less in terms of credit for a low money down owner occupant loan than a normal house loan, is that correct? If so, I think I will be able to get into a property this year or next. It seems to me like there could be an opportunity in multi family building student housing in Fort Collins, where for the most part, the tenant's parents will be paying rent for them. In a situation like this, would I also be able to apply the rehab and refinance steps of the BRRRR process to maximize equity I can pull back out?

Thanks, 

Jacob 

Thanks for the advice Dan!

I think house hacking could really work with student housing here in Fort Collins. After reading your article on how to invest in real estate before turning 21, I came up with a few questions. The first being, do banks view homes and multi-family units the same way? Also I noticed in the example you used, you put down 5% on the property, and came up with a $900/month payment, does that include PMI? I am looking to get a credit card soon, hopefully one with travel benefits, but I find it overwhelming how many options there are.

Thanks, 

Jacob

Thanks for the response Ian! Currently I don't own my house, I am living with roommates. That is extremely valuable insight, I had no idea banks only let you cash out 70% of ARV. In Fort Collins, have you seen any benefits to house hacking a quad-plex vs. a house or vice-versa? I imagine with the U+2 law it could be difficult to make margins work with a maximum of 3 people per property. Also, does private mortgage insurance work the same on multi family units and single family homes in Colorado?

Thanks, 

Jacob 

Hello all, 

My name is Jacob McMahon, I am 21 years old currently saving for a down payment on my first BRRRR property (probably a JV). My goal is to save 60k for a down payment, but I am having trouble deciding the most efficient ways to save it. I currently save roughly 50% of my income to a vanguard index fund (VTSAX), and my emergency fund is fully funded. I should be able to reach a portfolio value of 60k in my index fund within 4 years, but it's a very large opportunity cost to fund a down payment with my stock portfolio. It seems that the safest way to save for a down payment is in a low interest bank savings account, but that would take much longer. Would it be beneficial to switch my saving strategy over time? i.e. Save 50% of my income in my bank savings until it reaches 10% of the down payment, then fund the rest with my index fund. Does anyone have advice for savings strategies for my first down payment?

Jacob McMahon 

Hello all, 

My name is Jacob McMahon, I am 21 years old, currently studying at Colorado State University. I am ecstatic to be in the beginning of my FIRE journey, and to use BRRRR real estate investing to reach my goal of financial independence. My goal is to accrue 5-10 cash-flowing, single family homes in Fort Collins, Colorado in order to reach a point where the income generated from real estate allows me to quit my 9-5 and focus on more important world problems. I would love the opportunity to do my first property as a JV, hoping to get some experience under my belt with some guidance, before moving on to do the rest of the properties on my own. My current savings goal is to save 60k for a down payment on a JV property. I would love any savings advice to reach this goal as quickly as possible.

I am excited to join the Bigger Pockets community to gain knowledge, resources, and build a team. 

Jacob McMahon