All Forum Posts by: Marcos Carbi

@Bob Anthes Hahah, thanks for the encouragment Bob, I needed it! I sent my offer yesterday, waiting to hear back!

@Leo R. You're exactly right Leo, thank you! It's easy to get caught up in these market projections and let them hold you back. If the deal is right, I'm going for it!

As you lay out, house hacking is definitely an amazing strategy with tremendous benefits. My only dilemma is that I don't know where I'm heading in life, or where I want to be. I just graduated college and moved back home to Miami. I would love to live in an apartment with my friends sometime soon but everything is so overpriced. I also want to own a high cash-flowing STR to cover my everyday expenses. Maybe I can house-hack an STR?

Nonetheless, you've inspired me to do more research on house-hacking and truly explore my options; quite frankly, it is a cheat code!

P.S. Love that Warren Miller quote. 

Thank you my man. Best of luck to you as well!

@Jay Hinrichs Very true, thanks Jay! I would love to house hack with friends but I live in Miami, FL and the market here is very crazy. It is definitely something I'm open to though! 

@Nicholas L. Yes sir, I plan to self-manage for a long, long time, but it's definitely a good idea to budget it in. Any other advice for a rookie investor? I appreciate you!

@Nick Barlow Definitely, that's the plan! That's very interesting, I didn't know that - thank you for the knowledge. Do all DSCR rates reset every 60 months? Or is that an individualized component of your loan terms? Thanks!

@Juan V Lopez Most definitely. Thank you, Juan! Wish you the best as well!

@Nicholas L. Sure thing!

It's a 6/4/2 duplex (3/2/1 per unit) built-in 2003. It's in great condition and in a great area with very high rental demand. I would be renting both units at $1,650 for a total of $3,300 a month. Tenants pay all utilities, lawn care, etc. I would be putting around $30,000 of initial CapEx for roof replacement, AC replacement, new water heaters, and paint (they're all in working conditions but overdue for a change). Here is my break down:

$380K with 20% down (will try to negotiate down to $370K for CapEx)

Rent: $3,300

Total Expenses: $2,826

- $1,847 Mortgage (6.125% DSCR Rate)

- $400 Taxes 

- $150 Home Insurance 

- $231 (7% repair and maintenance due to initial CapEx investment)

- $99 (3% vacancy high rental demand)

- $99 (3% CapEx due to initial CapEx investment)

Cash Flow: $473/mo

CoC ROI: 4.86%

Thoughts? @Eric James I know the CoC return is quite low but that is because I'm a 22 year old with no job, so my interest rate is quite high. If it were my mom investing at a 4% rate, she would have a 9% CoC return. I'm also sacrificing cash flow for great appreciation, and a newer peroperty. I'm already invested in the stock market, now I want to diversify to real estate, plus I have a passion for it. I also want to get a short term rental which will be my high cash flowing asset. Nonetheless, my main goal is to build generational wealth! Eric, if you have better all around investments or advice, I would love to connect!

@Peter Mckernan Great, thank you, Peter! It's definitely easy to let the noise scare you as these are big investments (at least for me haha). Better late than never, happy for you my man!

@Yvonne Gallegos Very true, thank you for the insights! Would you mind sharing where that projected data is from, please? 

You're exactly right. I'm in it to build generational wealth, not flip! Thank you!