All Forum Posts by: Julian De la Guardia

Hey Tim,

House hacking is not just a good idea; it's a fantastic strategy for someone in your position. First off, kudos to you for building up the savings and diving into the multifamily market with an FHA or Fannie Mae loan. You're making a smart move, and that kind of foresight will pay dividends over time.

Now, let’s dive into your question: Is house hacking still a good option in today’s market? The short answer: Absolutely, yes, but with a few nuances to consider. I’ve worked with investors in similar markets (Providence and neighboring areas) and have seen first-hand how house hacking can be a game-changer.. even in today’s fluctuating market.

A friend of mine recently purchased a three-unit property in New Bedford, MA, just a stone's throw from where you're looking. He was in a similar position! used an FHA loan with 3.5% down, lived in one unit, and rented the others. The first year was tight because of higher interets rates, but his tenants effectively covered about 70% of his living costs. By year two, he refinanced to lower his rate and dramatically increased his cash flow. Fast forward three years: He's moved out, and the property now nets him close to $1,200 a month in profit after expenses. That's the beauty of house hacking.. it's a long-term play with massive upside.

What to Look Out For

1. Analyze the Numbers Thoroughly: With your goal of having the property cash flow once you move out, the key is to run your numbers with future rents in mind, not just what you’ll pay while living there. Websites like Rentometer can give you a quick snapshot of rental comps in your area.
2. Multi-Unit Strategy: If you can swing it, aim for a 3-4 unit property instead of just a duplex. Larger properties spread your risk.
3. Be Ready for Some Sweat Equity: Many first-time house hackers underestimate this part, but putting in a little elbow grease can drastically improve your returns. Painting walls, updating fixtures, or handling minor repairs yourself can save thousands upfront.
4. Consider Your Exit Strategy: You’ve got the right idea;house hack for 1-2 years, then convert the property into a long-term rental. Make sure the property meets the 1% rule or close to it (monthly rents = 1% of purchase price) to ensure it cash flows after you move out.

Yes, interets rates are higher than they were a couple of years ago, but rents have also increased significantly in many markets, including yours. From what I’ve read in the Wall Street Journal, average rents in Providence are up about 15% over the last two years, which could work in your favor. Plus, living in the property gives you the unique advantage of understanding it inside and out.. making you a better landlord when you eventually rent out all the units.

If I were you, I’d prioritize properties with room for rent increases or small upgrades that could boost value. It’s like my client in Omaha (where I’m based) :-) he bought a triplex where rents were under-market by $200 per unit. With minor cosmetic upgrades, he increased the rents, and now it’s one of the best-performing properties in his portfolio.

I also had a client in Providence last year who bought a fourplex. It wasn’t the perfect deal on paper. one unit needed some repairs, and the others were under-rented. but we saw the potential. He lived in one unit for two years, fixed up the property, and gradually increased rents. Now he’s moved out, and the building cash flows over $1,400 a month. Stories like these are what make house hacking worth it.

I hope this helps, Tim! If you want to chat more or dig into specific neighborhoods, shoot me a message. Whether it’s Providence, Omaha, Austin, or Phoenix, I’ve got the network to help you find the best deal and make it work for you.

Best of luck.. and welcome to the investing world; it’s a wild ride, but one that’s totally worth it!

Julian & Jasper

Turning investment visions into REALITY in Omaha, NE - Ranked as the #1 City to move to by Forbes Magazine.

Hey Michael,

Great to see you're diving into the world of real estate investing! Freddie Mac homes, often referred to as "HomeSteps" properties, are foreclosed homes owned by Freddie Mac. The good news is that these properties can indeed be purchased for various investment strategies, including rentals, BRRRR (Buy, Rehab, Rent, Refinance Repeat), or fix-and-flip projects.

Purchasing as a Rental or for BRRRR: You can acquire a Freddie Mac home to hold as a rental property or implement the BRRRR strategy. However, it's essential to ensure that the property's condition aligns with your investment goals and that you have a clear plan for any necessary renovations.

Fix & Flip : Freddie Mac properties can also be suitable for fix-and-flip investments. Keep in mind that these homes are sold "as-is," so a thorough inspection is crucial to identify any potential issues that could affect your renovation budget and timeline.

Special Requirements: Freddie Mac has a "First Look Initiative," which gives owner-occupant buyers an exclusive opportunity to purchase homes before investors can submit offers. This period typically lasts for the first 20 days the property is listed (30 days in certain states). As an investor, you'll need to wait until this period expires before your offer will be considered.

Additionally, Freddie Mac may require proof of funds or a pre-approval letter with your offer, and they often prefer cash offers or conventional financing. It's also important to be aware of any deed restrictions or covenants that could impact your intended use of the property.

A Personal Anecdote: I once assisted a client in Omaha who purchased a Freddie Mac home intending to convert it into a rental property. We had to wait out the First Look period, but once that passed, we secured the property below market value. After some strategic renovations, the property not only provided positive cash flow but also appreciated significantly over time.

Navigating the purchase of Freddie Mac homes can be a bit complex, but with the right approach and due diligence, they can offer excellent investment opportunities. If you're considering such investments in areas like Omaha, Austin, San Antonio, Chicago, or Phoenix, I'd be happy to leverage my experience and network to assist you further.

Best of luck with your investing journey!

Julian

Turning investment visions into REALITY in Omaha, NE - Ranked as the #1 City to move to by Forbes Magazine.

You know, I’ve had a few moments where I’ve scratched my head wondering if I was getting too cozy with my home equity, but pulling out those funds for a strategic investemnt has, more often than not, led me to some pretty sweet opportunities. Think of it like this... If your property has been chugging along quietly, building up equity in the background, that equity’s not exactly getting a standing ovation sitting there doing nothing. Sure, it’s easy to get nervous about over-leveraging... no one wants to feel like they’re juggling flaming torches while balancing on a high wire. But, in a market where short-term rentals in areas like Tampa Bay are on the rise... and I mean, last time I chatted with an investor-focused agent down there, she mentioned neighborhoods around St. Pete Beach and Treasure Island heating up, it might be worth tapping into that dormant potential. I'm sitting in Omaha these days, but I’ve got a soft spot for these strategies because I’ve seen clients pivot from holding tight to their equity, to making bold moves that expanded their portfolios in ways they never imagined. One guy I worked with...an old friend, actually...was petrified of taking on more debt until he snagged a short-term rental in Austin that practically doubled his monthly cash flow after a few months.

Now, let’s not sugarcoat it. Florida's insurance issues and zoning regulations can be a pain. I've heard from local investors in Tampa referencing recent changes and local property managers grumbling about red tape. If you talk to someone like the folks at Wren Insurance Agency (from what I read in the Wall Street Journal), you’ll find they’ve been adapting to the shifting market conditions with some interesting coverage options. Still, if you’ve got someone on the ground who truly knows how to navigate these waters, it’s like being handed a map with all the back roads highlighted. I’ve got a network that stretches into San Antonio, Phoenix, Chicago, and beyond... from what I’ve heard, when you team up with the right people, you’re not just investing in a property, you’re investing in a support system. For instance, a close buddy of mine in Chicago told me about a client of his who pulled out equity from a sleepy duplex and funneled it into a fourplex near Logan Square. That move felt risky at first, but the guy ended up calling me three months later, thrilled that those subtle changes in leverage gave him a disctreet edge. So, yeah, consider using that equity. Just be ready for the ride...it’s not always smooth sailing, but if you play it right, those jitters can turn into some seriously sweet returns.

And if you do end up jumping on a short-term rental in Tampa Bay, just pick up the phone and let's dig into it. I’m not going to pretend like I've got a crystal ball, but I’ve been around the block enough times to point you in the right direction. And hey, if it doesn’t work out, maybe I’ll owe you a coffee next time you’re passing through Omaha. We’re all just trying to figure this out, right?

Jasper & Julian

Hey Magda, I get where you’re coming from. When you’ve got a handful of rentals chugging along at around 5%, it’s like staring at a well-meaning college buddy who never quite got past intro-level economics.. decent, but never thrilling. I’ve been around the block for a couple of decades now, both as an investor-friendly agent and as an investor myself, and what you’re feeling isn’t unusual. Real estate’s a funny beast.. sometimes you end up with these steady Eddies that look fine on paper but don’t really get your pulse up.

That’s where a 1031 exchange can start to sound like the sweetest music you’ve ever heard. Picture sliding those properties into something with a bit more kick, maybe something in a market like Phoenix, Austin, or even right here in Omaha, where I’ve been knee-deep in the scene for years. One of my oldest friends.. Sarah, who used to laugh at me for buying up old duplexes when everyone else was chasing tech stocks.. decided to give it a whirl a couple of years back. I convinced her to take a look at a small multi-unit property near Aksarben Village. She gave me that side-eye at first, the look that says “You owe me a dinner if this tanks,” but not long after closing, she started texting me saying the returns were staritng to look wierdly good. It’s not always an overnight success story, but when it works, it’s priceless.

But I get it.. you’re looking for more than just numbers. Solid estate planning and tax strategies can be key. I’m not an attorney or a CPA.. just a guy who’s stumbled enough times to know which direction hurts less.. but I’ve seen clients find quality counsel from local firms in the Omaha area like Koley Jessen, which often works with real estate investors. On the finance side, I’ve known people who speak highly of Lutz for guidance, from what I read in the Wall Street Journal, though you’ll want to do your own due diligence. If you’re looking beyond Nebraska.. maybe you’re eyeing Phoenix’s multi-family market, or you’ve got San Antonio in mind.. I’ve got a network that spans the big names and the quieter up-and-comers, and we can sniff out the kind of teams who know how to structure deals that fit your comfort zone.

As for REITs.. well, I’m a hands-on guy at heart, always have been. REITs might feel cleaner, more “buttoned-up,” but personally, I love digging into the nitty-gritty, walking properties, and looking tenants in the eye. Seems some folks just can’t resist the idea of working directly with real tenants, real roofs, and real neighborhoods.

Maybe it’s just the years talking, but I still find myself leaning forward whenever someone hints they’re ready to move beyond vanilla returns. If you’re ready to reshuffle the deck, or even just chat through what makes the most sense, well, that’s where I come in. Let’s see if we can turn that polite 5% smile into something a bit more mischievous. And if you end up calling me tomorrow.. just don’t laugh too hard if I sound a little too excited to hear from you.

Julian & Jasper

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).

Hey Reeves, appreciate you putting yourself out there. I’m Julian, been in the game a few years now, grounded in Omaha but I’ve ended up helping investors find their footing in places like San Antonio, Austin, and Phoenix too. It’s funny, I actually got started in a market not so different from Wynne..small-town flavor, fewer big-name franchises, but a lot of hidden gems if you know where to poke around. A few months back, I worked with a friend who’d helped a first-time flipper in Jonesboro turn a crusty old single-family place into something that looked straight out of a design magazine. My friend said his client nearly bailed when she found unexpected wiring issues behind the kitchen walls..apparantly the seller hadn’t touched that electrical since the Reagan era..but with a patient electrician who understood the local code and a carpenter who improvised a shelving trick in the diningrom, they ended up selling above asking.

Flipping and building can get tricky, especially once you start thinking bigger. The Phoenix market, for instance, has been seeing shifts that reward creativity and timing. I remember reading something in the Wall Street Journal the other day that buyers lean toward modern finishes with a nod toward sustainable materials. Austin’s a different beast..there’s a mix of tech money and old-school homeowners who appreciate a certain flair. I’m not an attorney or CPA, so I’m not giving legal or tax advice, but I’ve watched clients navigate 1031 exchanges by leveraging well-connected property managers and specialized lenders who understood the local quirks. One client came in hot looking for a multi-unit in Phoenix - they wanted to roll over gains, keep taxes deferred, and jump into a hotter market. I introduced them to a mid-sized brokerage in the area (from what I’ve heard, they’re picking up steam) who specialized in finding off-market opportunities that don’t get plastered all over Zillow. Two weeks later, the client locked down a deal that appraised well above their initial projections.

If you’re serious about pushing your boundaries..maybe setting your sights on Chicago’s undervalued neighborhoods or San Antonio’s quieter pockets..let’s talk. I’ve got that Arizona license #AZ-21837, and I lean on a pretty wide network of top-tier realtors and boots-on-the-ground pros who can give you insights you might not find by just browsing listings online. Think of me like that old friend who can’t help but dish out stories over coffee; xcept my stories sometimes lead you to the kind of deals that nudge your portfolio from “just okay” to “damn, that’s impressive.” I’m not promising a fairy tale, but if you want guidance from someone who’s spent late nights haggling with contractors, tweaking staging plans, and emailing roofers at odd hours, well, I’m here. Let’s see if we can’t turn that next flip into something that’ll make you grin when you cash that check.

Hey @Brandon Eike, welcome to the BP Forum! Is there a target cap rate you are going for?

Not sure about the average. I remember chatting with a good friend of mine, Jared, who once picked up a quirky three-story in Somerville to rent short-term. He was initially terrified of buying a place with a pool.. thought it would scare off insurers and sink his returns. We ended up connecting with a local insurance group, Pope Insurance Agency, here in Boston. They got Jared a policy that ran around $4,100 a year, which wasn’t exactly pocket change, but it felt like a workable number once he factored in the premium he could charge per night.

Look, I get it.. you’re standing at this starting line, itching to get your first.... or next.... investment rolling, but all the advice floating around feels like someone’s reading off a stale script. Let’s be honest, I’ve watched folks who jump into this game as if playing roulette.. firing off offers on duplexes in Phoenix or leaning on some “sure-thing” house hack in Austin without ever sketching out their plan. That kind of shoot-from-the-hip approach can be fun for a minute, but it usually ends up like my old buddy Rick’s first deal.. he bought a distressed fourplex in Tucson years back without a real plan, and while he eventually turned it into a solid monthly cash flow, he spent the first six months sleeping with one eye on the tenant ledger, praying the HVAC wouldn’t bail on him after a hot desert day. A simple baseline plan might’ve steered him toward properties with more reliable maintenace histories or a stronger neighborhood profile, saving him a lot of sweat. And just the other day, I was grabbing coffee with a friend who reps a group of invsetors out in San Antonio.. they got burned early on by not clarifying their rental criteria, picking up a triplex that sounded good on paper but turned out to have a revolving door of problematic tenants.

A baseline business plan isn’t just a mind-numbing exercise.. it’s the guardrail that keeps your momentum from swerving off into the ditch. Think of it as the rough sketch that helps you figure out where you want to swim: Omaha’s stable single-family rentals with decent cash flow and strong appreciation potential, the sizzling up-and-coming pockets around San Antonio where off-market deals still lurk if you’re willing to roll up your sleeves, or those tight-knit Chicago neighborhoods where a trusted investor-friendly agent can point you to contractors who won’t ghost you mid-reno. I remember working with a client a couple of years ago who wanted to do a 1031 exchange into Phoenix multifamily.. they had some numbers in mind, but no framework beyond “I want more doors.” After we drafted a bare-bones plan that considered their timeline, target rents, and capital reserves, they honed in on a medium-sized complex managed by a local group.. from what I’ve heard, these guys had impressed other out-of-state buyers before and delivered on their promises. Without that baseline plan, we might’ve ended up playing Whac-A-Mole with random listings and half-baked projections.

I’m not pitching perfection here. Plans evolve. Markets shift. Even now, I’ve got clients in Austin who started off focused on short-term rentals and suddenly found multifamily syndications more enticing after running the numbers and chatting with other savvy folks in my network. But having that initial plan- hell, even a scribbled outline on a napkin; will give you something to pivot from when the market throws a curveball. It’s not about chaining yourself to a rigid model; it’s about giving yourself a reliable starting point, so when the next tempting deal in Phoenix’s midtown corridor pops up, you know it fits into your broader strategy rather than just hoping it’ll magically work out.

At the end of the day, nobody’s going to knock on your door and hand you a neatly packaged portfolio. If you’re asking whether to lay a baseline plan, I’d say you should, if only to save yourself some of that restless confusion that hits at midnight after a marathon Zillow session. And if you’re aiming to step into these markets. Omaha, Chicago, Austin, Phoenix, even San Antonio-I’m always keen to chat and share what I’ve learned from two decades of navigating the twists and turns of this world. Just don’t feel like you have to walk into the arena blind. A loose plan in hand is better than a dozen frantic Google searches, trust me. I’m a licensed agent in multiple states (my Arizona license number’s on file if you need it), and while I’m not your attorney or accountant, I’ve seen more real deals than I can count. Working with someone who’s already plowed through the weeds can spare you those headaches and keep you from feeling like you’re reinventing the wheel every time a new opportunity pops up. Anyway, I’ll leave it there; it’s your journey, after all, and if we’re going to kick this can together, I’d rather see you show up with at least a rough map in your back pocket.

Julian

Turning investment visions into REALITY in Omaha, NE - Ranked #1 city to move to by Forbes Magazine.

Hi Natalie,

Welcome to the exciting world of real estate investing! First off, let me say that starting your journey in Miami, especially in the Brickell area, is a sharp move. That neighborhood is buzzing with potential-young professionals, trendy developments, and a rental market that’s always in demand. A two-bedroom condo for house-hacking could be a golden opprotunity to kickstart your portfolio.

I’ll share a quick story about a client of mine, Tony. He was fresh out of college and nervous about his first investment in Omaha, of all places (my home base). He bought a duplex, rented out one unit, and lived in the other. Within six months, he had a steady rental income, and two years later, he leveraged the equity to buy a fourplex. Brickell has that same kind of potential, but with even higher rent ceilings thanks to its location.

A couple of things to keep in mind as you dive in:

• Financing: As a first-time buyer, you might qualify for low down payment programs. From what I’ve read in the Wall Street Journal, locking in a low interest rate now could be a smart move given today’s economic trends. Be sure to run numbers with both a local lender and a national one to compare terms-sometimes smaller local firms can surprise you.
• HOAs: Brickell condos often have HOA fees, which can eat into your cash flow. I had a friend in San Antonio who learned this the hard way. She bought a condo with lower-than-average dues, but a few months in, the HOA announced a special assessment for roof repairs. Be sure to dig into the HOA's finacials before you buy.
• Renters: Miami attracts both long-term renters and short-term vacationers. While you might lean towards long-term tenants for stability, short-term rental platforms like Airbnb can yield higher profits if the building allows it.

When you get to Miami, I'd recommend visiting a few meetups hosted by South Florida REIA. From what I've heard, they're fantastic for networking and picking up local insights. And don't be afraid to chat with leasing agents in Brickell-they can give you a boots-on-the-ground perspective on rental demand.

Natalie, your story reminds me of a friend of mine, Alex, who house-hacked a two-bedroom condo in Phoenix. She rented out the second bedroom to a traveling nurse and found that the rental income not only covered half her mortgage but also let her save for her next property. Stories like hers-and hopefully yours-are what make real estate so exciting.

Real estate can feel overwhelming at first, but trust me, you’ve got this. If you ever want to bounce ideas off someone or need a sounding board for a deal, I’m just a message away. It’s a blast helping new investors like you find their rhythm and start building wealth.

Talk soon,
Julian

Turning investment visions into REALITY in Omaha, NE - Ranked #1 city to move to by Forbes Magazine.