All Forum Posts by: Jonathan White

Thank you @Dan Nutter, @Cade Olof, and @David Bain. 

I apologize for the delayed responses. I had not seen notification about your posts. I would love to hear from each of you on your experiences. I think the MFH house hack is a great opportunity for my friend. She is realistic on the numbers and understands that she may not do better than matching her current rent. But if she can do that while gaining equity in a property, she is happy. 

Hello, 

I am a San Diego real estate agent, and I have a client that is interested in learning more about house hacking a MFH. This would be my client’s first home purchase so she is understandably nervous, and she would really appreciate talking with someone that has first-hand knowledge on the topic. 

Is there anyone in San Diego that would be interested in meeting up to discuss the success they have seen in house hacking their MFH property? Added bonus if you did this utilizing a VA loan.

Thank you,

Jonathan
 

@Aaron Bonne great post and question. It makes people really identify their needs and goals to add direction to the action they (I) will need to take.

Goal: $5,000 a month

Really to replace my wife’s income to allow her the freedom to do what really inspires her. She would love to flip homes but I think she like many is scared to take the leap. If we can generate enough supplemental income to allow her to do so, we would both be happier and feel more secure. Mostly it would give her time back, which cannot be replaced.

Current status: Still looking to take that jump. I am a bit stuck in the analysis paralysis state, so I am working myself to the edge where I would have no other option but to take the plunge. I am currently trying to assess the amount of reserves necessary with a rental purchase, and trying to open up various avenues to get the experience via different means. At the moment, I am interested in SDIRA options, and I am looking into options with non-recourse lenders. Understandably those funds won’t help my monthly income, but I can still gain the experience while I build funds outside my retirement account to invest later.

I am glad I ran across the post. It feels good type these ideas out.

@Carl Fischer

Thank you Carl. I found multiple posts on the topic shortly after writing that post. I am going to continue to read up on all the options. If you don’t mind, can you explain the non-recourse loan? I have heard that it is difficult to find a bank willing to offer one.

Also, how detached am I from the property? The reason I am interested in pursuing this venue is to become familiar with real estate investing overall, so I want to make sure that I can gain that experience. I would prefer to keep things at a distance for my investing overall so I am fine with not handling any of the day to day. Is my impression of this opportunity incorrect?

@Andre Taylor

I am looking into the same thing. I have most of my funds tied up into my retirement accounts and I would like to utilize them to gain familiarity with real estate investing.

I will look to post anything I find out on this thread, but look forward to hearing more about other individuals’ experiences as well.

Some particulars of interest for me include,

- Do all funds for the purchase need to be from the self directed IRA account, including any repair costs or maintenance costs?

- Do all profits need to be deposited in the account, or do I have the option to place those into an account I can more immediate access to now?

- Do I have the option to refinance the loan later outside the self directed IRA to make the proceeds available to me?

Thanks for posting the question. It is nice to know I am not the only one looking for some guidance.

@Daisy Ferreiras

I will preface that I have yet to move on even one investment property, but your numbers look great for a first go at it. The comments above seem to overlook the fact that this is your first one. I am sure future properties and the associated numbers will improve. I think the most important part now is to be comfortable with the movements through the process.

I say good job. Please post more information on the property as you move through all the steps. I would be interested to know if the numbers you present hold true, specifically in regards to the rental income and projected home value.

@Alyssa Dyer

That is some great insight. Thank you.

Since I would be looking to manage from afar, I would feel more comfortable following your friend’s path for property investment. Maybe that is a false sense of security for me with out of state investing. Playing mind games with myself I suppose.

I will definitely take your comments into account when looking at options. Like I mentioned before, the area is very enticing with the variety of multi family and single family home options.

@Carly Radzimanowski, do you have photos of the properties that your brokerage or you have done? I would be interested in knowing what opportunities may exist in Nashville. I have glanced over the area in general, and only visited once (not for investment searching), but I loved it.

@Alyssa Dyer

I have been looking in the OKC area as well lately. Similar to @Jordan Santiago, I live in a relatively more expensive area (San Diego), and I have not figured out the creative ways to work deals.

The OKC area seems to offer a variety of property types at attractive prices, but the concern of building a strong Core Four is daunting. I am less concerned on finding the realtor to find properties when they seem to be plentiful as I am concerned about finding a good (preferably great) property manager and contractor / handy man.

I am aware that there have been some significant developments with big businesses in the area. Namely I have heard the some of the aviation companies have invested in the infrastructure around Travis AFB which provides comfort with the growth and stability in the area. I see this as a great way to continue to boost the local economy.

I also have an affinity for college areas. I know students can be abusive on properties, but the constant turnover seems like it would be an opportunity to continue with rent growth trends to the market. Is this faulty thinking?

I would be interested to hear what you found to be successful in the area. Maybe even general suburb areas that you might recommend trending away from. I have tried searching based on school ratings as I found in general that the communities surrounding good schools have better properties, if only cosmetic.

@Greg Scott @Michael S.

I appreciate the insight. I was not thinking about things accurately at all. I looked into the situation further and I am not sure it is a viable avenue for funds anymore. There is a long backstory to it, so I will let that be.

At this time, I am looking to tap into those creative solutions that exist until I build the capital to move in some of the less creative ways on a deal. At that point, maybe the less creative ways won’t be the most attractive ways forward.

Alternatively I am looking in areas outside of San Diego, where the numbers might make sense. That opens a whole other can of worms though. Definitely keeping me busy.