All Forum Posts by: Luke Stewart

when will the next one be? Id like to join 

If you are having one in May I would be interested in coming!

This is a goal of mine as well, I have outlined a 15 year plan, with hopes to get there in 12. I think the best thing you can do is sit down and write a plan for how you achieve "quitting the W2". My goal is replacing my yearly income with cashflow. Currently I sit at $6000 for last year on one property (total cashflow), my new duplex will cashflow about $1500 a month (rentals start 5/1) so come next May I should be looking at potentially $24,000 in cash flow a year. I work as a travel nurse so my plan is once I get to 50k in cashflow I am going to only work 9 months a year, then when I cashflow 100k I will work 6 months a year, $150k cashflow I will work 3 months a year. For those goals to workout I need my W2, I need to keep my income to continue to qualify for loans, its the fastest way to keep buying properties and I refuse to "hope" for appreciation and/or quick refinances. If I get appreciation/refinances that's awesome but I am not factoring it into my plan because I would rather have it be a pleasant surprise and a boost than a disappointment that it didn't go as planned. I wish you the best of luck on this journey, and I can tell you that writing out a plan was the best thing I ever did.

 @Amber Forkey Would you mind sending me your guidelines as well? Id love to learn from them. Thank you!

 This is very helpful, thank you!

Just as the title says I have a new duplex and one unit will be rented LTR and the other unit (my primary) will be furnished MTR for portions of the year when I am out of town for work, I travel about 9 months of the year. My plan was to have the two units share the garage but I was curious if anyone has dealt with this type of thing and what they found to work out the best? It is simply a detached garage, nothing else in it but storage. 

I am in the process of setting up this exact thing. I am screening currently for the LTR and the MTR should be set up by mid May. The biggest issue I have is that there is a 2 car garage that I am considering sharing between the two units, half for each. I love the idea that I am covering 65% of my total monthly cost with the LTR and then I should be able to cash flow approx $1300 a month after the MTR is up and running. The way I see it, if the MTR doesnt do well I will just convert it to an LTR, it's nice to have the flexibility. 

 1.5x rent is more what I am finding in Denver, I have never received double rent for my one MTR, and currently setting up another what will bring in about 1.3x rent. I think location is key to a furnished MTR. My newest property will probably be better unfurnished down the line but gonna give it a year and see how it does. 

I totally understand not loving the house hack idea, but it truly is the best secret to start your REI journey!! Best of luck.

To start this I will be blunt, if you use an FHA loan and you do not occupy the property within 60 days of closing and maintain it as your primary for 12 months you will be in mortgage fraud, period. That's a felony. If you are doing conventional, I believe (someone fact check me) you can do whatever you want. There are a few extenuating circumstances that will allow you to not occupy the FHA as a primary.. check out the link.

https://www.fhaloans.com/artic...

While he is most likely correct that an FHA agent won't come knocking on your door, it is a possibility. But hey, we all have to live with our own risk. I am more concerned that your agent is telling you to break the law... end of the day he isn't the one responsible for the mortgage or the potential fraud. As a current house hacker (duplex, live in half - just closed 2 weeks ago) I will give you a question to ponder.

What's more important to you? Buying a house hack and living in it while increasing equity, paying a low monthly mortgage (covered by renter) and beginning your REI journey on a "supercharged" path? Or buying a single unit which will build less equity, have you paying more out of pocket and while still starting your REI journey.. it will just be a slower start.. but you dont have a renter living on the same property. You need to be comfortable with your choice, so this is probably the most important part

Also, are you talking about buying a duplex which is 2 individual units or a SFH with an attached suite or renting rooms? Because those are two very different set ups. I wouldn't want to live in a unit with others either, but a duplex seemed like an easy choice for me. End of the day its what you're comfortable with, do what's best for you. I just don't want you to get in trouble because your realtor gave you some questionable advice.