All Forum Posts by: Jason Scharf

Thanks for your replies? Esmir, do you have any agencies in particular that you could suggest?

Hello Everyone,

I currently reside in Liverpool, NY and my goal is to find a cash-flowing small multi-family to house-hack. I want to ensure it has at least $100 of positive cash-flow per door, as multiple investment guides say should be the minimum rule of thumb. 

I am new to the Real Estate Investing world and was stuck in analysis paralysis for quite some time. Recently I decided that I'm taking action! I did some online research and contacted an agent located in Liverpool. We have looked at a few homes together and sat down to meet one night and I signed an exclusive buyers agent form which has a 6-month duration. To make a long story short, it's not that I do not like her, I think she's great, but she admittedly does not specialize in investing and does not have much experience with REI. She does have loads of knowledge about rehab work, but I'm not sure if this is the right fit for me. She is the first agent I've ever worked with and frankly, my adrenaline and excitation of beginning the process I think clouded my judgement. I should not have signed something I wasn't 100% knowledgeable about and undoubtedly am making some rookie mistakes. Is there anyway that I could still pursue working with another possibly "better fitting" agent or am I more or less bound now that I've signed the Exclusive Buyer's Agent form? Again, it's not that I don't like her, but I feel like I need more guidance than what I'm getting. Guidance about vacancy rates, rehab cost, property management, rental rates, good rental areas in Syracuse region, etc.

As always, thank you for your help and any advice would be excellent.

I'm trying to go with FHA. Possibly a 203K loan for some repair cost as well.

I've taken action to begin looking for a multi-family home to house-hack. I've been looking at properties with an agent whom I've felt comfortable with so far. I've only looked at 4 properties. Here are the trends I am seeing:

-Many properties are preoccupied with some tenants being month to month and others not

-All of the homes need updating, some more than others that need serious structural work

-The asking price range is between 100K-200K in the market I am looking in

-The rents seem to vary between 650-950 p/mth with some paying utilities and others not

-Most of the properties have laundry units for the tenants that are not coin operated

Here are my concerns:

Since I plan to make the property my primary residence it is difficult to overlook the flaws. Ideally, I visualize purchasing a property that is vacant, fixing it up to my standards and then beginning fresh with new tenants with my own rules (such as having coin operated laundry with one year leases that do not include utilities). I am not overly impressed with the tenants whom I've met so far and question whether I would have chosen them to live in one of my units. Unfortunately, the only house I saw that was vacant was a complete disaster. My agent said it would most likely be in excess of 100K to repair which may not even include desired cosmetic changes.

I guess the point of this post, while it has no direct question, is to vent a little and just get some advice to maintain my motivation. I know it's only been 4 properties, but it's a bit overwhelming. I think it is because I want to live in the property and I am concerned with my own quality of life and it is skewing my ability to look simply at numbers.

Well, that's my rant. I want to keep at it obviously and will, but any words of encouragement (and constructive criticism of course;) are welcomed.

As always, thanks Biggerpockets!

Hello,

I have researched the forums and have found mixed answers, so I'm just going to post the question. How do you quickly analyze a property if you plan to househack? 

Fictitious Example Property 1, 4-plex:

$1,500 monthly mortgage payment

Rent amounts are listed as follows:

Apt 1: $650

Apt 2: $650

Apt 3: $650

Apt 4: $650

Gross Income= $2,600

Using 50% rule:

$2,600 Gross Income - 50% expenses = $1,300 Net Operating Income

NOI $1,300 - Mortgage $1,500 = - $200

What if I wanted to live in one of the $650 units?

Thank you so much in advance!

-Jason

Hi guys,

I have an appointment tomorrow to view my first house hacking potential. It's a 4 unit property in Liverpool, NY. I'm gettin anxious in an excited way but just want to get some quick refreshers from my bigger pockets network before I go. Here are the questions that I am thinking need to be asked. Please let me know if any of you would add to this list. Thank you so much in advance!!!

1- Why does the seller want out? She may not know the seller because she's not the listing agent.

2- Does this rent seem reasonable for the area?

3-Could I see comparables for this area?

4-Could I see a Pro-forma?

5-Are there any major expenditures that need to be done (roof, plumbing, hvac, etc.)

Other thoughts? Also, she did say that they're are currently tenants in the unit. Cannot remember if she said all were occupied, but how does that work if I want to make improvement to the home and the rent may increase? Do you basically just say to the tenants, the rent is going up and either pay and move on? First timer, trying to do it the right way. Any advice is, as always, appreciated. Thanks everyone!

I appreciate everyone's advice. These are all very helpful. I have thought about house-hacking for quite some time. The only thing holding me back from attempting this is the fear of property management. I don't have a lot of contacts for handymen, but I'm sure I could find one. They can't be that obsolete. Also, what do people think about hiring an agent to place tenants in your properties as opposed to doing the marketing yourself? You guys are all great and thank you again for your input!

Getting right to the point.

Current profile:

Age 33, single, no children, full time employee w/ annual salary of 49K, 403B Retirement Account of a little over 45K (as of today), Money Market Account of 30K. 700+ credit scores across the board. No debt.

Monthly Fixed Expenses:

$1,500

($1,170 of that is base rent for my apartment in a suburb of Syracuse, NY )

Monthly Average Spending:

$2,200

Goals:

$3,700 positive monthly cash flow

Quit 9-5

Method for Obtaining Goals:

Turn-Key Rental Properties through out-of-state companies

Questions:

Will it be possible to get qualified for financing to obtain the amount of rental property needed to achieve the above goals given my profile?

If I were to quit my job today, would I be able to obtaining financing to achieve the above goals?

Possible Wild Card if needed, but prefer not to use:

Generous and loving father willing to give up to 100K to attain above dream. Would much rather accomplish this with 100% independence, but if the seed money is needed I would consider. 

Conclusion:

Let's assume I've done the research on Turn-Key companies and have found a match.

Am I crazy? Probably. But I know some people on this Earth have made this happen. Any advice would be great. Preferably not advice saying, don't quit your day job, you're unrealistic, keep dreaming, nice try, etc.

Thank you everyone!

Thank you Brandon. I will definitely read the post!

Hi Cerwin,

Thanks so much. I will be honest, I am not 100% sold on just flipping. I know I have to find a niche and stick with it, at least in the beginning, but I would be more than happy to speak with someone who is knowledgeable about Real Estate investing in general. I appreciate your help!