All Forum Posts by: Matt Bouthet

Hey all,

I'm looking for a Real-Estate friendly CPA in the Hartford County area. Does anyone have any recommendations?

Thanks,

Matt

Nice job! I'm looking to do something similar for my first deal. Good luck!

Hey Alexander,

I'm planning on doing a similar strategy that you've done with the FHA loan, improving the value and getting some equity built in once I refinance. Through my research I've found that when transferring a title from your name into an LLC might trigger a "due-on-sale" clause from the bank, in which you'd have to come up with all the money owed on the house. I'm pretty sure that this clause is common in almost all mortgages, so I would double check on that before transferring any titles.

Good luck!

Matt

@Nicole Heasley Beitenman I definitely agree with paying down debt first. I worked all the overtime and side hustles I could to pay off my student loans and now I'm living debt free. My biggest expense is monthly rent and I'm looking to househack so the rental income can cover that expense and I can save towards more properties. 

@John Warren @Mike McCarthy

Thank you both for your input. I personally like the idea of having a separate account for the property and was thinking of using a high-interest savings to put the rent money into each month, and a separate checking account to pay the bills from. That way the passive rental income is also generating some extra interest, even if it's only around 2%.

Hey Everyone,

I am planning on opening a new bank account for the MF property I plan on househacking with an FHA loan. I have been analyzing the properties with the consideration of living there the first year as well as once I move out and am renting out all units. Ideally I'd like a 3-family (or 4-family if I can find one) that will cashflow with just 2/3 units occupied and me living in the 3rd. The rental income would go towards buying another property in addition to the money I'm saving from my W2 job + side hustles. I want to have enough money saved by the end of year one to househack a 2nd multifamily.

I'm curious to know what other investors out there think about "paying your own rent" to yourself to put more money into that property's funds for any potential expenses and to save for the next property. Or do you think it would be more beneficial to save that money from your unit into your personal savings?

I look forward to hearing what people think!

Matt

@Manny Cirino I'm looking all over Hartford County. I think there are opportunities especially in New Britain, Manchester, and East Hartford. 

@Manny Cirino Thanks for your input. I agree that it's a better choice to keep looking. I just found out that the current tenant is only paying $450/month in rent so that makes this one a no-brainer now.

Hey BiggerPockets!

My name is Matt and I am new to real estate investing. My goal is to achieve financial freedom through real estate investing. My first step towards this goal to buy and househack a multifamily property by November 2020, taking advantage of the FHA 203k Loan for a lower down payment and being able to make improvements to the property.

I've read a few books (Financial Freedom with Real Estate Investing - Michael Blank; The Book on Rental Property Investing - Brandon Turner; Rich Dad, Poor Dad - Robert Kiyosaki; and Quit Your Day Job by Oliver Trojahn), and listen to the BiggerPockets podcasts and webinars, as well as various YouTube channels. I feel like I have a pretty solid understanding of what to look for in a property and have some specific steps to reach my goal of financial freedom.

I was targeting three-family homes because I am fairly certain by all the analyses I've done that I could start cash flowing immediately with two units, while occupying the third. I planned on staying there for a year, then my girlfriend and I would take out another FHA loan in her name to househack another multi-family property, building up our portfolio of rental properties.

I've been focused on finding a good deal on a 3 or 4 family building until I just found this duplex. I did an analysis using the BP Rental Property calculator and found that after one year I could be bringing in just over $200/month, and have a 10% CoCROI (including the 5% maintenance and vacancy, 5% CAPEX, 10% management fees). This property after we move out would meet my goal numbers which I arbitrarily made up (10% CoCROI, and $100/unit/month). BUT the downside is that during our first year of occupancy and loss of 50% of the rental income, it would be negative cashflow about -$380/month.

That $380 is still substantially less from what my girlfriend and I are paying in rent now, but I'd be building equity and experience. My brain says that I should keep looking (which I will be) for a potentially positive cashflowing property, but my gut says to get that first deal to gain some momentum. 

I am curious as to what some more experienced people think about this and if it's something they might recommend to a new investor, or if they would opt to find a property that would be postively cashflowing to as their first investment.

Thanks!

Matt