All Forum Posts by: Luke Henderson

@Bonnie Griffin Kaake Thank you Bonnie, I will do as you suggest. I appreciate your willingness to help.

@Brock Freeman Hey Brock, are you talking about 504 loans? Is it true that they only require 10% DP and can be as low as 3% interest?

Hello all, with the market the way it is now, I'm finding it incredibly difficult to find passive ROI on MF investments, and I've looked all over the country.

I am starting to consider commercial estate investment - mostly small business warehouses, shops, etc, but I am having a hard time finding good solid education in commercial investing. Does anyone have links, webinars, workshops, or even good advice for me? I need to relearn how to run the analysis numbers for commercial, understand the loan differences, differences in tenant relationships, expectations, tax effects, etc. I can put about $400k cash into an investment and I'm in the San Diego area, so if anyone has suggestions on actual business areas that would be great too.

Thank you

@Holly Kaufman thanks Holly! And congrats with the 9 doors, you're well on your way. I'm also looking at commercial real estate as well since 8 think I can find better ROIs with the current market. But I have a lot of research to do.

@Kay C. Yes it is. I had some money from selling my first house in CO and put every dime of it into a 20% down on a house here. I picked it because it had a separate ADU with split utilities and a separate entrance. It also had its own yard and space to build on. So I rent out the main 3/2 house and live in the ADU. The rent easily covers the mortgage. Also if I travel, I can rent my ADU and it covers travel costs. You can definitely house hack here. Just look for something that's desirable even when split.

@Mya Toohey haha fair enough. I've just heard about this strategy used to get a great deal, but maybe I should use a rule of thumb of $10k... $100k is probably over zealous. Thank you

@Shaniqua Henry thank you Shaniqua. I feel very fortunate. I will say it was terrifying putting every penny I had into my first property. But I always knew I'd rent out the main house and live in the ADU, so it should pay for itself. House hacking has been a life changer for me, and I recommend it to anyone who can swing it. Good luck!

@Mya Toohey thank you for this feedback. How do you feel about tossing in $100k earnest to the offer? From what I understand the check doesn't cash till near closing, and I have wiggle room out if I find out anything about the property that's high risk. Can a big earnest combined with a cash offer and small $100 option create a good hook?

@Abel Curiel Thank you Abel, I will reach out

My background:

I'm a 33 year old engineer that has one 4-10 job and does contract work on the side for an average of 65hrs a week. I have $150k cash to invest in, I have an open line of credit for $250k with a great rate, and I have other investments I could pull from if needed. I live in California and have been house hacking my property for several years which more than covers my mortgage. In the short term I'm planning on quitting my day job and solely doing contract engineering to make time for real estate and to have a life...

What I want:

I want enough relatively passive income to cover day to day expenses, and only work for fun or on projects I love. My main goal is to have more free time, so I don't want to trade a full time job for full time property management, but I also don't need an investment to be entirely turnkey. I don't have a door count goal, but a good end goal would be to net $15k a month by 2030. I want to invest in properties I'd live in, and net at least $500 per month per unit to be worth the work.

What I don't want:

I don't want to flip houses, BRRRR, or make life miserable for my tenants. I have yet to have an unhappy tenant and I don't want to start now.

My thoughts:

Where I live properties are far too expensive to turn an ROI for buy and hold, so I'm looking at Tampa and Houston markets (I have a PM friend in Tampa already that I trust). I'm mostly thinking of muti family homes in middle income areas. With the cash on hand and the line of credit, I think I could offer cash for a MF and then refinance to pull out 80%. Then maybe do a conventional for a second. I've had a hard time finding decent ROI anywhere but I know they are out there. I'm mostly using DealCheck to analyze properties.

My request:

I would greatly appreciate any and all advice on how to realize my goals; areas to invest, investment types, financing options, etc.

Thank you all for reading my small novel, and for taking the time to help a fellow investor.

Sincerely,

Luke Haberkern