All Forum Posts by: Matthew Brill

There are pros and cons to both. I have used property managers for both my house hacks and the traditional rentals I have. My take is to do what is your highest and best use and to let the pros handle the management. That being said, different people are in different positions and have different talents so it could be that self managing is better for you, it definitely has it’s advantages. You can also split your portfolio up and only self manage some to ease into it. But I agree with comments above that at the beginning hiring a PM can also help you learn the ropes to eventually take over at some point should you want/need to.

Originally posted by @Justin Farr:

Hello BiggerPockets family! My name is Justin Farr. Sorry for no photo I’ve tried to update it and clear history and try Chrome but nothing is working but! I’m moving to Massachusetts this summer and I’m looking to buy a multi family home for my first house. Was wondering if anyone out there would like to link up or if there’s any seminars/webinars or venues out there to attend? 

Congrats at making the move to take action. House hacking is a great way to go. I’ve done a couple and helped some others. Let me know if there’s any way I can help you.  

@Josh Shaughnessy

Treasure coast is nice too. Still an affordable price point there. Lots of new construction moving in there. Cost of construction is going crazy, but I think the build to rent type model works well in those areas. Would be awesome to build a house hack small multi!

@Nathan Gesner

Thanks!

I’m planing to keep buy 1 property a year until I max out my Fannie/Freddie loans. I’m also considering jumping into mid size multifamilies. I also invest in larger apartment syndications which will probably be my predominant strategy moving forward. I am planning on investing with @Brandon Turner in his next open door capital fund. I would also like to help others get into house hacking and benefit like I have. 

@Michael Yenny The safest ways to get crypto back loan without cashing out your holdings is usually by using a well-established exchange like Blockfi. Blockfi will provide you a fiat loan of 50% of the value of your crypto holdings with them. I want to say the interest rate is around 9.25% and the term length is 1-year with only interest due monthly.

The "safety" in this is debatable as you effectively hand over the keys to your coin, which I personally am comfortable with in terms of Blockfi as they are insured and highly capitalized. There are other options out there for crypto backed loans but the interest rates and security.

This is not financial advice to use Blockfi but merely showing an example of how you might be able to use your crypto holdings to get a fiat loan

@Josh Shaughnessy

Sounds like a great plan. Are you looking at a certain area in Florida? I like prospects of the space coast and I4 corridor.

I would definitely house hack. It can be a great ROI on saved living expenses and a great intro to rental real estate. Consider getting a loan on your crypto holdings (if feasible). You'll save the capital gains hit and potentially get to use the interest as a tax deduction. You'll want to have those funds in your bank account for more than 2 billing cycles so the bank won't make you show where it came from. Also, aim for a conventional loan with a low down payment. It's more attractive regarding the PMI.

I would go with the lower down payment. If you can get conventional financing at 5% or less and the PMI will fall off when you hit a low enough LTV. You can hold off on your potential private loan for a house hack in another year if you haven't saved up enough for the next DP by then (tip: make sure you have that money in your bank account for more than 2 billing statements so you don't have to source the money or use it as a gift). You could also have the money as a source of reserves should something happen early on in the property, or even use it as rehab funds if you find a value add deal.

I think it’s a great idea. There are two things to consider:

1: is it feasible based on code and STR regulations. You can either go to your local zoning board and ask, or find a local agent or contractor.
2: financial analysis on how much the ADU would cost to build vs how much income you can generate from the rental.

Hey @Easton Curtis. I think it's great to acquire properties by living in them first. If it were me I, my first option would be a small multi family (2-4 units) and then a SFH if I couldn't find one that the numbers worked for me. There are lots of loan options out there, your first move is probably to speak to some local lenders to see where you stand financially and what you can afford/how much you need to save. After that, when you start looking at properties you'll want to analyze them to see how they perform both while you live in it and after you move out.

It is definitely possible to have the rental property when you are out of state, I would just be looking for a property manager and factor that into your analysis. If you house hack a duplex it will also get you somewhat accustomed to landlording for when you move away.

Regarding using your Roth IRA, I don't think it's a bad idea, it just comes down to the property and what the return will be vs what return you anticipate getting in the IRA. I would guess that you could make a better return on a house hack than what your IRA might get. Also, I'm not a tax professional, but I think IRAs are first in, first out with regards to funds so you might be able to take out any contributions you've made without penalty or tax.