All Forum Posts by: Kaja Baum

@Ashley James I've read the regulations for Warren but my STR is in Page County. From what I remember the key difference with Warren Co is the distance requirements from other residences.

 Hi Bonny,

Yes, I think the $100k range is probably a good minimum guess at that price point. Unless there's something I'm missing, $45k gross revenue on a $779k property is a terrible deal, but that might be for a number of reasons (low availability, bad management, etc). I'd go to Airdna and run some comps for that area to get your own numbers.  

@Robert Baez I feel your pain. I had the same issue starting out in Stafford. You don’t need a multi to house hack though. Depending on what you’re willing do try, I’ve had great experiences renting a bedroom. Or you can find something with a basement with a bathroom and separate entrance. Sounds scary but honestly, we vet people well and have had no problems.

Hey @Christopher Luksa. Welcome! I'm out of Stafford, Va. 

David Green's book on Brrrr is a gold mine. As well as J. Scott's book on Flipping Houses. The second will be a bit dated on costs but it's still a great reference manual. 

Would love to connect sometime. Feel free to shoot me a message! 

Kaja

Hello and welcome @Robert Baez!

 What @Jesse L. Weaver said is right on the money. It depends on your goals and risk appetite. I'd add house hacking to the potential list since if it's your first purchase then it makes a lot of sense to not be renting if you're paying anything close to market rate rent. Plus, if you already own a primary, congratulations on your first investment property! You can buy a second one now. 

Just keep in mind that if you're doing a fix and flip or Brrrr, be sure to calculate a generous overage with your holding and rehab costs. Especially your first time around. Things go wrong and I too often see people saying (especially with hard money rehab loans) that they have X amount of money to cover down payment and that's what they're spending. 

Don't feel like your first answer is the forever one either. You might try a class C high cashflow neighborhood and realize you hate it and move to something else for the second property. It doesn't need to be a perfect decision. You just need to make the decision and not screw up so bad that it takes years to recover. Good luck!

@Kimani McCarthy Are you in the Richmond area? Like @Heidi Thompson said, house hacking is common. I think it's the easiest and safest way to get your feet wet, but certainly not the only way depending on your living situation. The other thing I'd say is invest where you know and visit often. Aka your backyard or someplace where you have connections. It's easy to get overwhelmed with all the buzz about "top markets," but the reality is your top market is where you have the advantage. Virginia has number of investible places that don't require you to go cross country. I'm in the Fredericksburg to Shenandoah areas so feel free to reach out if you have more specific questions! 

Such a cool story, @Darian Hines. Thanks for sharing! I recently Brrrr'd a property in Buffalo. There are definitely lots of opportunities up there. Sounds like your'e on a promising path!  

Hey @Kyle Pagliaro, I was in your position not long ago. Still am in many ways. I think it's an ebb and flow depending on where you are in life. I found that while the first few years of investing have been incredibly stressful, they're also going pay off big for my future family. If you don't have kids, now is the time to hit it hard and possibly frame to your future wife that in a few years, all this work will give you some wonderful options.

My husband is much like your wife. Super supportive but not interested in the day-to-day. I think the biggest thing is like you said, being on the same page with finances. It's hard enough carrying much of the load for investing. It would be unbearable if I felt he was working against me by making frivolous purchases or was unwilling to make a few sacrifices. 

We've also kept our finances mostly separate, not because we don't trust each other but because two people means twice the mortgages. Also, she may not want to manage spread sheets but maybe she wants to be the designer to make your house hack a gorgeous rental, or utilize her photography skills for your listings, or play model for your STR lifestyle photos etc.

Hope that helps. And Congrats on the engagement! 

@Timothy Smith Ha! Not quite yet. I have family up there so it's a nice trip write-off at least. Maybe in a few years. ;D

Thank you @Hamp Lee III!