All Forum Posts by: Lorenzo Prieto

Hey Justice! 

Pole vaulting! Wow, that's pretty cool! Welcome to the BP community! Like you, I'm a newer BP member also but work in the real estate world as a mortgage loan originator. Happy to meet you!

Thanks for the response Ronald! 

To answer your questions, my current living situation is set up as a month to month deal so I'm pretty free in that aspect. 

Secondly, I would like to purchase another property a year after I purchase my first house hack. 

Thank you! 

Hello! 

I've been searching for my first house hack deal. In my area there are a lot of single family properties that have been converted into duplexes near our University. My goal was to purchase one of these types of homes so I can live in one half and rent out the other (more privacy). I've gotten out bid a few times now on these types of properties near the university so I think I may consider taking a slightly different approach. I'm considering purchasing a regular single family home further away from the university and just renting out the rooms but have a couple of questions/ requests for advice.

1. I'm not sure if lenders will accept the income received from renting out the rooms in my primary residence (reason being I would like to continue to purchase properties). I know most would consider this boarder income. 

2. Would it be wiser to continue to search for the duplex type properties and maybe make stronger offers on homes or could it be just as good renting out the rooms in single family home. Anything I should look out for with the two different  scenarios?  

Any advice helps! Thank you! 

Hello, 

I've recently had an interesting real estate opportunity pop up. I've been looking for a duplex to do a house hack for my first property and have been getting out bid. I now have an opportunity to purchase a friends property for a great price. I estimate it to be about 80k - 100k under market value. I'am now seriously considering purchasing the property, renting it out for 3-6 months to current tenants (however long the required time is per the loan product) and then selling the home for a profit. With the profits made on the sale I plan to reinvest into a multifamily deal that I could house hack.

The reason behind selling it so quickly and not holding it is for two main reasons. 

Number one, I'd be purchasing the property from a friends parents who are giving me a great deal and then I would sell and give part of the profit to the friends who set up the deal - almost as a wholesaling commission. This would help them purchase their first property!

Secondly, the property is not my ideal investment. I'm looking for more long term rentals that cash flow rather than a fix and flip type deal. The only reason why I'm considering it is because of how much potential profit can be made if we were to sell it for what we think it's worth. 

Any suggestions or things I should consider more deeply would be greatly appreciated. 

Thank you, 

Lorenzo 

Thank you Jaron! I appreciate your feedback! 

Hello, 

I'm searching for my first investment property and I've noticed a few properties on the MLS state the property has had long time tenants and the units are all under rented. I'm curious on how to approach this when buying an investment property that is currently under rented. I understand in order to cash flow I would need to increase rent however I'm hesitant to immediately jack up the rent. My thoughts would be to do some minor renovations and find new tenants if current tenants do not want to pay the rent. Any thoughts/comments would be appreciated. Thank you!

Great information! Thank you Jake! 

Hello, 

I'm looking use my 401k to fund 3-5 percent down on my first house hack. I think realistically it would take me about a year or two to save enough money for a down payment and I'm eager to get in the real estate this year. My biggest question is if this is a smart thing to do. I am not close to retirement age now and would like to think that by starting as soon as I can in real estate I will be better set up for retirement later down the line through real estate investing. I've done some research and understand the penalties associated with withdrawing from a 401k. Is there anything that I should watch out for or think about deeper before making a final decision? 

Thank you! 

I recently read a book mentioned in the bigger pockets podcast "So Good They Can't Ignore You" by Cal Newport. In one area of the book it talks about building rare and valuable skills aka picking a niche and mastering it. I've heard this from numerous investors "Pick a niche and a strategy and go with it". I'm looking for tips as to what the best option would be for new investors trying to decide between STR or LTR?

Secondly, I’ve noticed a lot of investors are also real estate agents. Would any realtors out there recommend getting my real estate license? I currently work a W2 as a mortgage processor and would like to invest more time into building overall career capital in the real estate field and I’m wondering if becoming a real estate agent has led to more success as an investor.

Hey Dylan! Thank you so much for your reply! That is great feedback! I'm certainly going to look into that further before moving forward.