All Forum Posts by: Kory Lutes

@Erick Harbert Thank you for the quick and helpful response. I am new to the term "house hacking" but now I got something to search for. Thanks!

Hey BP,

So I've been on the hunt recently for deals and I found this place that is great! As I've been crunching my numbers I always tend to come to the point where I realize, I will be occupying half of  this 2-unit property so when it tells me the cash flow I get a negative result. Now I tell myself, this is an up and coming area, real estate prices are increasing here, and with a little bit of sweat equity I can rent this place for more which will get my cash flow in the black. Has anyone else started off in a scenario like this as well and have any advice to help me just fight through and get the deal? Any stories on what one had to do to get their properties cash flowing? This will be my first deal and I appreciate any feedback, thank you.

Thanks for the quick responses. Yeah I feel like an umbrella policy might be my best bet for now. I definitely want to go forward with this kind of financing and once I'm ready to purchase more properties I'll consider the LLC. But I suppose a decent insurance policy for now can protect me from potential slip and fall lawsuits

Hi, I've been doing some reading and have found some mixed reviews on whether I should form an LLC and close under that for my first multifamily property purchase. This will be an owner occupied property. I've read some people say that most lenders won't be able to give you the same financing (like an FHA 3% down loan) because you close under an LLC. Also that insurance policies won't be able to protect you as well if not in an LLC. Could anyone shed some more light on this subject? I am just starting out and want to leverage as little as possible to obtain my property so I can have a decent backup cash reserve amount but I also don't want to be very unprotected..

Originally posted by @Stephen Marks:

Hey Kory,

Im 24, living in North Jersey and looking to do the same within a year or so. Best of luck to you !

 Awesome! Yea I've been looking into the Monmouth County area. Asbury Park seems to be making a change for the better in recent years and Red Bank is also becoming a trendy spot too. Where have you got your sights set on?

Hello BP,

Glad to have finally joined this forum! I've been reading on and have found a wealth of information on here and some really good tips and strategies. Here's a short intro:

My name is Kory and I'm from New Jersey. My career is in the music industry and I am constantly on the road because of it. My first step in real estate investing is to buy a multifamily house in central NJ, live in one half and rent out the other. I've already been pre approved and the house hunt has begun so now I just want to make sure I'm well prepared to be a landlord and to see how I can streamline the whole process. Looking forward to learning a lot here. See you around!