All Forum Posts by: Jason G.

Out of state investing is very common, though I have no idea how common it is to not have actually visited any of the properties.  I figured at some point I would visit them, but I just never have.

With respect to partnering, my wife is my partner. Our combined income vs just one of our incomes definitely made it much easier to expand our portfolio.  You could network through sites like bigger pockets or go to local real estate investor group meetings to make connections with people who could potentially be viable partners.  

I personally wouldn't purchase a condo as an investment and I haven't used an FHA or NACA loan so I cannot comment on them and will defer to others that have experience with those areas.

Out of state is not difficult to get into.  There are turnkey companies or platforms like Roofstock that assist investors in doing so or you can contact property management companies or look for investor friendly real estate agents in that market to assist you.  I have never been to any of the properties I own in Atlanta and closed on all of them from my dining room table in Long Island. I have a property management company manage all of them. The same will be the case when I close on the Ohio property.  House hacking a multi-family is a very viable idea, but in the end is all about the numbers and if they work.  That is why I keep going back to whether or not you analyzed the numbers.  And you have to remember too, NYC is not the norm in the country when you are reading through Bigger Pockets.  You want a duplex in a lot of places and you are looking at between 150-400k.  You want a multi family in Brooklyn and you see the numbers, you would be lucky if you could get a closet for those prices.  It is like you might as well be on a different planet.  

I'm not really sure what you are trying to say. I wouldn't buy an investment property that I was just breaking even on. Yes, in recent memory, aside from the sub prime mortgage crises which caused prices to drop, over time housing prices in New York City has increased substantially. But I'm not sure what that has to do with carrying a large mortgage where you are just breaking even and speculating that property will continue to appreciate. Even if it does appreciate, the only way you realize those gains is if you sell. Yes as you pay down the mortgage you will gain equity that way, but the interest is front loaded so it takes time to build that equity from principal paydown. When you've looked at potential properties, how are you computing the break even point. Are you factoring in regular maintenance, CapEx, turnover costs, or paying the PITI when you have vacancies or a tenant isn't paying? And even if you are, if you are just breaking even, how are you planning on expand the portfolio beyond that first property? I live in Long Island, NY. I chose to invest out of state because of the cost of real estate in NYC/Long Island. I'm not saying you can't be successful in Brooklyn or any other borough. I have ownership interest in two properties on Staten Island, but they were purchased at a point in time where the numbers worked. Just make sure you have a real investment plan laid out because it doesn't benefit you to pull the trigger just to end up losing money every month or losing the property because the numbers don't work.

I've used them on three different properties for mortgages and have been happy with them.  

Just a little confused on what your options are. You are thinking of taking out a HELOC and using the HELOC on what exactly? Is the question to use a HELOC to update the house or the cash you saved up for a down payment on a new house? If that is the case then if it was me, a HELOC on the house to do the updates and save the cash for the down payment. Though definitely ask yourself if you plan on renting it out are updates necessary?

That will be a big mortgage. If you had the down payment, have you done the math for the expected rent, PITI and reserves to see if it would even be a viable investment strategy?

I have always saved the money and done a 20-25% down payment on a conventional 30 year mortgage. I don't recommend trying to use a credit card for a down payment. Between the interest rate and it impacting your DTI it just is asking for trouble. Seller financing deals will likely require a down payment and a higher interest rate than a conventional mortgage. I don't know your circumstances, but real estate investing is not a get rich quick investment strategy. For most potential investors it is better to get your ducks in a row with education, income, and savings and then invest.

5 and closing on a 6th later this month.  

I had just seen an ad for them pop up on Instagram. It sounds like a very interesting way of investing and I would love to see someone that has used them do a detailed post on their entire experience with them, especially someone that has been using them for a long period of time. My biggest concern looking at their website is that their example results on their website show properties from Kansas City, Forth Worth, and Austin with purchase prices of 236k-411k. I currently have five properties in the Atlanta metro area and I'm picking up one in Cleveland. The reason I shifted out of Atlanta to begin with was because the properties are now moving above 200k and the numbers are beginning not to work. I couldn't imagine spending 411k on a SFH at this point unless I was living in it. I want properties to be worth that and higher years after buying them under 200k, not as an initial starting point.

If I was in your shoes I personally would pass. I dont know anything about the program, have never heard of it, but I'm closing on my second Multifamily property in a couple of weeks and have never paid for any seminars or programs. I would rather use that money towards the downpayment on your first property.