Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Keaton Roberson

Keaton Roberson has started 5 posts and replied 22 times.

Post: How much money do you need to save up for a house hack???

Keaton RobersonPosted
  • Salt Lake City, UT
  • Posts 23
  • Votes 11

Hey Alfred,

I actually am closing on my first property (also a house hack) in Atlanta at the beginning of April. My numbers are below:

Purchase Price - 320,000

Down Payment of 5% - 16,000

Pre / Closing Costs - 11,000

Repairs needed - 15,000

Emergency Fund Required - 15,000

Total $ needed - 57,000

A few things to note: I went with a 5% down payment to get the lowest monthly PMI charge and interest rate possible. I also chose the Conventional vs. FHA - I would look into this if I were you because the PMI automatically drops off on a conventional loan once you get to 78% loan-to-value of your purchase price (or you can have it appraised yourself when you believe you're beyond 20% equity) vs. the FHA where they package an additional premium onto your loan. Look at this article to see for yourself and talk to your lender obviously https://www.nerdwallet.com/art.... Also, I recently boosted my emergency fund from 10 to 15K just this month due to the uncertainty I personally have with my job in the short-term with the recent shut downs. So I am rolling with the bunches a bit and am taking a page out of Craig Curelop's book and plan to fund my initial repairs with a credit card that has a 0% APR introductory offer for 15 months. I would just rather have the cash in my bank and borrow it for free, but this is completely a personal preference I believe.

All that being said, I had exactly 42,500 in the bank, zero consumer, student loan, or personal debt when I went under contract on the home. A lot of my confidence to pay the credit card off before the 15 months are up and the high interest rate kicks in is because with my current rent I am averaging about 2,000 / month in savings. This savings rate will go down slightly with the PITI from the home, but not substantially enough to affect my ability to pay it off within 9 or so months. I'm not including future rent in my calculation, which will also speeds this payoff time up.

That was a lot, but I wish I had someone to respond to my post with as much detail as possible when I was starting to look.

Let me know if this helps!

Keaton

Post: House Hacking in Atlanta Questions

Keaton RobersonPosted
  • Salt Lake City, UT
  • Posts 23
  • Votes 11

Hey BP community,

I am currently viewing homes with my realtor in the north Atlanta area (mainly focusing on Smyrna, Marietta, Roswell, Sandy Spring etc.) and I'm wondering if my expectation for rental income by the room is accurate... 

Most advertisements I'm seeing on FB Marketplace and Craigslist has room going from 600 - 750 depending on the shape of the house and location. Even as high as 800 or 850 for a master bedroom. I have been running numbers generally forecasting 750 for a master, and 650 for all other bedrooms in the home for a generic good condition home in the Smyrna, Marietta and Roswell areas. Does this match to what you all are actually getting each month? I would love some insight.

Additional notes: I plan to have a bi-weekly cleaning service, and utilities will be split evenly by the number of bedrooms.

Thanks in advance BP community!!

Keaton

 

Looking forward to attending for the first time tomorrow. Can't wait to meet everyone!

@Olivia Umoren So I was fortunate enough that my parents let me live for a year at home. I was having to commute over an hour each way to work so it wasn't ideal but I did get to save on not paying rent for a year. 

I also am a financial analyst as my day job so I laid out a pretty strict financial plan/budget for myself. Once I moved out I laid out a budget where I live on less than 50% of my take home pay and I was putting the rest towards my student loan debt. Now that I don't have payments I will maintain the same lifestyle and put the rest away in the bank for my emergency fund/down payments. This should only go up as my income increases and I maintain the same lifestyle. 

To your question about the vehicle: I personally have a paid Toyota Tacoma that I bought for $4K my senior year in college that has been very dependable (I personally have put over 35K miles on it). I don't personally plan to have a car note. I will probably just buy another cheaper vehicle if this one get damaged beyond repair.

I look forward to reading @Scott Trench's book "Set For Life" that speaks on living below your means in a similar way.

I believe the key is to live as frugally as you can now and don't increase your living once your income increases and your wealth with grow exponentially from there. To steal a line from Dave Ramsey - "Live like no one else so later you can live and give like no one else". I think the delayed gratification route is pretty rewarding in that aspect.

@Olivia Umoren I also graduated in 2016 with ~$42K in student debt. I was given advice and a plan of action that I am currently working to getting my first multifamily that I will house hack within the next 2 years by my 26th birthday. That is my personal goal that I plan to accomplish. This is definitely a delayed gratification plan, but it can work. 

I have been living on the bare minimum for the past 22 months paying down my student loans to where now I am writing my last check this month! I'm pretty excited to get this off my back.

Before anyone comes at me with how this is not a wise decision given the time value of money and potential compound growth, just know I am completely aware that I could have invested this money at a higher interest rate and "put it to work" rather than paying down my 4.5% loans, but it was more of a freedom from this non asset-based debt that I was wanting to  get rid of. 

Now that I am debt free in my personal finances I will be working to get a decent lump some of 6 months of my current expenses built up by the end of this year so I will have the pockets to stomach a water heater going out or a leaking roof in my first home.

Then I can move on to saving a small down payment (I'm going the 3.5% FHA route) to get a multifamily home or home with a converted basement here in the Atlanta market for myself to live in one of the units and begin my investing career.

I hate that I haven't yet been actively investing but I'm also extremely proud of myself for clearing the debt and being able to move forward and be in a financial situation to leverage my money wisely in real estate before I begin.

So all in all within 4 years of graduating college I will be house hacking with no personal student loan debt.

There are a lot of smarter people than I on this site who have much more experience who may give different advice, but this was the plan that I really latched onto when I was reaching out about my first property 2 years ago. Now I'm almost to the finish line! Take this how you want.

Best of luck in all your endeavors,

Keaton  

Post: Getting in the door with a potential mentor

Keaton RobersonPosted
  • Salt Lake City, UT
  • Posts 23
  • Votes 11

@Ryan Horne I like that idea a lot. I'll definitely use that hopefully be able to be of some value to him like @Aaron K. and @Rob Beardsley said.

@Adam Abdel-Hafez My personal goal for my future is to one day own a pretty diversified portfolio of real estate from single family all the way to small apartment complexes. Really just trying to be of use where I can so someone in the industry now and learn how to get my feet wet with some guidance.

Post: Getting in the door with a potential mentor

Keaton RobersonPosted
  • Salt Lake City, UT
  • Posts 23
  • Votes 11

Hi Everyone,

I plan to reach out to my current landlord who owns several small apartment buildings in the Atlanta area to hopefully learn some insight into his career and how he got started in the business. I plan to offer to take him to coffee or lunch one afternoon at his convenience to learn about his career path and how he got started. I will also send a written thank you letter once we have met.

I am wondering what exactly should I mention in my email to try and guarantee that he will meet with me and if we do meet, what should I mention to try and create a potential mentor /mentee relationship. 

Experienced Investors: What do you like to hear from a beginner in the industry that is trying to get some time with you to learn about your story?

Thanks for any help,

Keaton

Post: Atlanta investing

Keaton RobersonPosted
  • Salt Lake City, UT
  • Posts 23
  • Votes 11

@Michaela G. that definitely looks like something I would be interested in. How common are the Invest Atlanta program homes coming available? I wasn't aware of them until your post. I am going to try and make it to the meeting tonight so I can talk to you then if I see you!

Post: Atlanta investing

Keaton RobersonPosted
  • Salt Lake City, UT
  • Posts 23
  • Votes 11

@Michaela G. how would you currently rate Adair Park by tenant class? I'm looking to get into a house hack situation around the Atlanta area to move closer to work and the town has been on my radar. My only worry is the class of tenants that would be interested in living in the area currently.

I too am very optimistic on the Beltline development project and its added benefits to the surrounding areas. My friends and I are constantly enjoying the trails and activities along the more developed areas of the project. I think all in all that ITP will continue to see a large influx of upper middle class workers in the coming years. I would love to get into the area now while I can before it booms in the coming years like I think it will.

Post: Realtor in Atlanta and brand new to BP

Keaton RobersonPosted
  • Salt Lake City, UT
  • Posts 23
  • Votes 11

Hey Tyler,

I'm sure you'll be welcomed. Next Tuesday there will a meetup in Atlanta that you may be interested in going to. Here is the link to the discussion that you can follow to keep up to date with any info.

Aslo, I will be looking to purchase a home within the next year or so after I finish paying off my student loans and have capital for the down payment. Would enjoy talking some time.

Keaton