All Forum Posts by: Joshua Herald

Tonight we passed on our first multi-family investment. The numbers look solid but after visiting the site, there are some obvious reasons why this wouldn't make a great "House Hacking" property. My wife is used to our neighborhood. Not high class but not sketchy. So now when we look at multi family properties that we could potentially own strictly as an investment properties in rougher areas, she is immediately out. I try to explain to her that certain areas are up and coming and investors in early make the big money. she said "what if you are out of town, and I need to bring the baby and fix a problem, I wouldn't feel safe here" And yes I explained the use of a property manager. How can I say no to that. I don't want her to feel in danger but I also don't want to miss great deals. Has anyone else out there had a resistant significant other? How did you get through it?

@Craig H. 

Lets assume I secure private or hard money for the reno. Obviously I would want the reno completed asap to get out of the " not so good" terms. Could i get a new appraisal and then refinance to a traditional? I guess a lot like the BRRRR strategy?

 How would one go about finding a rehab with this type of funding? They won't usually go over appraisal amount. Private lending?

This is a 4 family property. Currently rented at $700 /unit. I eliminated one of the units for me to live in. 700x3 = 2100. 

These are the same property. I would be a ridiculously long and expensive flip. I live there.

I am looking at a multi family in cincinnati and I am debating "house hacking" one of the units  while we renovate it to get better financing or just running it as a rental. Obviously by losing a full units rent, the numbers are now low but are still in the positive. How do you calculate the value of not having a mortgage? 

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*This link comes directly from our calculators, based on information input by the member who posted.

I started my REI journey about 5 years ago. After a few youtube videos hooked me on "flipping", I started to search around for a good deal. I had no idea what a good deal was. I purchased "how to buy forclosures for dummies". The terminoligy was way over my head and it discouraged me. I was online one day and found my local REIA chapter and decided to attend. After a few weeks I got up the courage to let everyone know I was looking for a property. Long story short, I found a couple who had a wholesale deal that they were looking to offload. They ended up doing a prehab on it so i could get the proper financing in place. Since then, I have rehabbed the entire home other than windows which i hope to install this weekend.

Here is my problem. Since owning the home, I fell in love, got married, had a baby boy and my decisions are now affecting others. Our goal is to get to the point where our passive income will cover what i currently make(somwhere around 12 units) and i can stay at home to raise my boy. We plan to do this through multi families and single family homes. 

If we decide to sell the home we are currently living in, we will need to go somewhere. Hopefully we can find a multi family that we can stay in one unit while the other(s) pay for the mortgage. 

The existing home has about 40-50k of equity. Some of which i plan to use to pay off my student loans. 

Should i keep the home and start buying multi families or sell it to get the funds for future deals?

Maybe a lease option? 

Thanks @John Warren!!! This kind of info is what i need to get past the analysis paralysis. 

@John Warren thank you. It makes sense but I was under the impression that realtor have a general area they work in. They may be only looking in forest park and not Hyde Park. (if your not familiar with Cincinnati, those are on different ends of town.

This is great. I'm in the process of converting my wife to the REI world and she loves this stuff. I try to keep her grounded in reality and let her know about the potential pitfalls but she really gets into success stories. Thanks for sharing, this is really motivating. Good Luck with the rest of the year!!