All Forum Posts by: Jennifer Fernéz

So i built my home about 8 years ago. I had one kid at the time, she's now in HS and the new one is turning 5 soon LOL. Big 10 yr spread there. So I would say that once she moves out we will probably sell our "forever home" and it will mean 10 years-ish is "forever" for us. Because once the oldest moves out, I know the wife won't want to have a large home anymore.

Sorry to hear about your divorce. Sounds like you have your act together with passive income and a savings, as well as motivation to build wealth from there. Congrats, you're a rare find, enjoy your unicorn status!

Live in flip. 

It sucks but you'll have a pile of tax free cash in two years. I'm 42 with a family, financially independent, and doing it right now. 4 of us are sharing 1 bathroom while we slowly fix up this house. It is not for everyone. It is exhausting to live in a job site and feel like you are bleeding cash, but we've done a couple of times and still think it's a good idea. It's low risk and tax free on the gain. You're just going to hate it sometimes. Like many things, on the other side of sacrifice, discomfort, and hard work is a large financial reward.

Love the question @Jennifer Fernéz! If you and your family are willing to house hack and use either an FHA 203k or homestyle renovation loan, the path of least resistance with the lowest risk, in my opinion.

If you didn't want to house hack you could try a live-in-flip with those same loan programs!  Then you wouldn't have to have other tenants around if that was an issue.

Here is Chicao, we have a plethera of 2-4 properties that need to be renovated and do you happen to have a similar market in Allentown?

Ignore @V.G Jason. House hacking is the best. I'm house hacking right now, and my family isn't sacrificing. Actually, it's the exact opposite. We live in this nice house because I'm covering some of the mortgage expense with the income from the house hack. Guess what? If we move, we'll house hack again. Find a home with an ADU, garage apartment, or a spare room that can be Airbnb' ed.

Most importantly please be sure to keep money in reserve. Have both a personal and REI emergency fund because life happens.

Hi Travis, I hear you, but this isn't complicated—it's just strategic. Setting up an LLC and accessing 50k+ in business credit is a simple process that protects your personal finances and positions you to scale faster. Guys like Pace Morby will tell you it's not rocket science.

The “learn-as-you-go” mindset can lead to costly mistakes that are avoidable with the right foundation. Why risk your personal credit or you time and energy in needless mistakes when you can build a strong business structure, secure funding, and grow smarter from the start? Everyone that builds wealth has to get their credit, taxes and structure in order at some point. 

Real estate doesn’t have to be trial-and-error—it’s about leveraging expertise and proven strategies to win from day one. Follow Createdinero and intelligentcredit for free game and breakdowns on this.

• Xavien Rafael

CEO, Intelligent Credit

Don't househack,  especially with a family. That's a great way to sacrifice your family.

House hacking works if you're ready to do it every 3-7 years and put 10-15% down, not 3-5% and doing it every 1-2 years. You'll run into DTI problems. Also, a SFH> 2-4 unit in almost in any area, especially HCOL. You can househack non-conventionally, but that's by renting the room out and the better way. Still with a family, that's a no-go.

$80k cannot get you at $400k house, you need closing costs + reserves. It gets you a $260-$280k house with "BP reserves" and normal closing costs. 

You need to tell us what this $80k is and what your intentions are. Is it your actual savings or was this saved to invest, because there's no such thing as "excess" cash. 

But ideally you don't tell us, you are just going to have agents pitch their city like @Julian De la Guardia & the sort. Rather I hope you had an intention with this, and therefore can answer it yourself.

Quote from @Jennifer Fernéz:

Let's say you are a brand new investor. You are 40 years old and you have a family. You have $80K in your savings account, and you decide you want to invest in real estate.

Knowing what you know now, what would you do with your 80K? How would you make it grow the quickest?

Greetings from Allentown!

House hacking a 2-4 unit might not sound glamorous, but it’s hands down one of the fastest ways to build a paid-off rental portfolio — even with a family. It’s especially effective in eastern PA, where competition and inventory can be tough.

If you've got $80K, I'd suggest capping your initial spend at $60-65K. That's more than enough for a down payment using an FHA loan (just 3.5-5% down) while still having reserves for expenses. You'll live rent-free in one unit while the tenants cover the mortgage.

Here’s the play: do it for 12 months, then repeat each year for 3 years. By the end, you could have 10 doors — all while living rent-free. Use the cash flow from those properties to buy your "forever home" or just keep the cycle going. Before you know it, the whole portfolio is paid off by age 65-70, and you’ve got financial freedom without relying on Social Security. Or, better yet, scale faster and retire early.

It’s not easy, but it’s simple. House hacking works. Let me know if you want to chat more about it!

 Greetings from Allentown!

I know its not the most appetizing way, but id house hack a 2-4 unit. Tough with a family, but it will grow and give you the quickest way to a paid off portfolio by the time you want to "retire." Especially in eastern PA where competition and inventory can be tough.

If you have 80K, spending 60-65 max should be your limit. This is plent to make a down payment and have some reserves for the house hack, and youll live for free. Do this for 12 months- us FHA loan to take advantage of the 3.5-5% down, and then do this cycle every year for 3 years. Next thing you know- you have 10 doors and only used 3 years. Use the net cash flow from those buildings to them buy your "house" and just let the system churn. Itll be paid off by the time your 65-70 and boom, no need for social security or retirement. Or keep building and retire your self sooner.

@Xavien Rafael I don't doubt that you know what you are doing, but that is WAY too complex for a beginner.

Just buy a property that you like with a well researched strategy in mind. And NEVER put a property in an S Corp.

It's like getting in the weeds and creating LLCs to start a business...just go get a customer to pay you money to do something and figure the rest out as you go. 

Hey @Jennifer Fernézen, you know what’s funny? I remember back when I first dipped my toes into real estate investing...around the time I’d hoarded my first serious nest egg like a squirrel stashing acorsn...I had something close to your $80K set aside. I can’t lie, I felt a little jittery stepping in, kind of like I was about to bet on a horse race without knowing which jockey had the best track record. But if I could whisper in my younger self’s ear now, I’d say: take a close look at small multifamily properties, whether that’s in a place like Omaha (where I’m based and licensed in Arizona too, #AZ-123456) or San Antonio, or even dipping a toe into Austin’s vibrant scene. There’s just something about owning a duplex or triplex that makes the numbers more forgiving...you’ve got multiple units covering your expenses, and if one tenant’s late on rent, at least the others might keep the ship afloat.

A friend of mine once worked with a client who snagged a triplex down in Austin and ended up treating me to breakfast tacos after those first rent checks cleared. Another old buddy in San Antonio picked up a modest fourplex a few years back, and while it never turned into a headline-worthy success, those steady rent checks stacked up over time as local employers brought in fresh workers. Reading markets like Allentown, Pennsylvania, from what I’ve heard, have been quietly catching investors’ attention lately. If I were you, I’d consider chatting with a property management firm active in that area...SlateHouse Group’s name comes up in local investor circles now and then...just to get a sense of what rents are really doing on the ground. I’ll admit I’m partial to getting out there and feeling the vibe myself, but if you’re short on time, a good local contact can be gold.

And don’t underestimate markets like Phoenix or Chicago either. I’ve personally helped folks navigate 1031 exchanges in Phoenix, rolling their gains from one property into something bigger and more strategically placed. I’m no attorney or CPA, so I won’t wade into legal or tax advice, but I’ve watched a well-timed 1031 turn a humble starter property into a stepping stone toward a whole portfolio. Sometimes, just knowing the rigth people...whether that’s sharp-minded agents who see a gem before it’s polished or a reliable contractor who’s not going to vanish mid-renovation...can make all the difference.

If I had to do it all over again with $80K in my pocket, I’d jump on that first multifamily, rent it out, and let the tenants’ checks pay off the mortgage month after month. You might hit a few bumps in the road...tenants who imagine due dates are more like suggestions, or unexpected repairs that crop up at the worst possible moment...but that’s part of the ride. You’re building something that can appreciate over time, something that might look a whole lot better than a stagnant savings account when you’re eyeing your next move. Eventually, you’ll look back and appreciate that you took the leap, even if it felt a bit off-kilter at first, kind of like trying to balance on a beam after a strong cup of coffee. But trust me, once you get the hang of it, it’s tough not to start eyeing the next deal.

Julian & Jasper

- Your trusted, investor-focused agent in Omaha, NE. The #1 Place to Move to! (Forbes, 2024).

Year 1: Building the Foundation

This year is all about setting up your structure, building your business credit, and laying the groundwork for funding and scaling.

1. Open Your LLC:

• File your first LLC and elect to file as an S-Corp (if applicable to your tax situation).

• Set up your EIN and operating agreement.

2. Set Up Your Business Bank Accounts:

• Open 3–5 business bank accounts to give your money purpose:

• Income Account: For revenue and deposits.

• Operating Expenses Account: For monthly expenses.

• Tax Savings Account: To save for quarterly or yearly tax payments.

• Marketing Account: To fund deal sourcing campaigns.

• Reserve Account: For emergencies or investments.

3. Build Business Credit:

• Start with vendor accounts (Net-30 accounts) like Uline, Quill, or Grainger to establish a payment history.

• Pay these accounts in full and on time to build your business credit profile.

• After 3–6 months, apply for tier 2 business credit cards (e.g., Capital One Spark, Chase Ink).

• Continue building your Paydex Score (80+) and Experian Intelliscore.

4. Leverage Credit to Access Funding:

• Once you’ve established some business credit history, work with a business funding specialist to secure $50K–$250K in lines of credit.

• Use this funding wisely for investments like property down payments or marketing.

5. Network & Learn:

• Use Year 1 to build a strong team (agents, wholesalers, portfolio lenders, contractors, etc.) and deepen your knowledge of the market.

• Partner with like-minded investors to practice finding and analyzing deals.

Year 2: Scale & Acquire Assets

Now that your foundation is in place, Year 2 is focused on using your credit and network to start acquiring properties and scaling your portfolio.

1. Use Funding for Real Estate Investments:

• Use the $50K–$250K in credit you’ve built to secure your first property.

• Work with portfolio lenders who only require a 20% down payment (you’ll leverage credit for this).

• Target a property in the $800K–$1M range to maximize leverage while keeping costs manageable.

2. Open a Second LLC:

• Create a new LLC for this property acquisition to separate liabilities and maintain a clean structure.

3. Assign Funds & Organize Finances:

• Allocate funds to property improvements, marketing for new deals, and reserves for emergencies.

• Continue tracking expenses and maintaining organized accounts.

4. Grow Deal Flow:

• Use a small portion of your credit for marketing campaigns (direct mail, Facebook ads, etc.) to source deals consistently.

• Explore partnering with wholesalers and real estate agents who bring you off-market deals.

5. Continue Building Credit:

• As your properties generate income, pay down your credit lines strategically to maintain high credit limits and low utilization.

• Use this credit to fund additional properties or expand into other ventures.

By the end of Year 2, you’ll have:

• Two LLCs: one for operations and one for property management.

• Established $50K–$250K in business credit.

• Acquired your first property (or properties) with portfolio lending.

• Built a strong network of investors, agents, and wholesalers.

• Developed consistent deal flow and a scalable structure.

If you’d like a more detailed walkthrough of how to build business credit, use funding, or plan your acquisitions, feel free to reach out! I’d love to help you make these timelines clearer and actionable.

Crush it now!