All Forum Posts by: Michael Hastings

Hi @Nick Curry, I like the initiative you are taking, trying to identify a opportunity for a new business opportunity.  When I was landlording, I had a property manager who qualified the tenants and showed the property to them as needed.  That was included for the 10% fee that they received from me, off gross rent collection for the unit(s).

I think this is a question to pose to a local group of investors in Cincinnati, and I would encourage you to reach out to your local REIA group or Apartment Owners' association for feedback. Attend one of their meetings and pull an investor to the side. This could be a regional service, not something nationwide, so answers here may vary.

Hi @Robert Chappell, I have been in your shoes before.  I was investing in Real Estate in California before the last run up, and although my credit was not poor, I had no money over and above my day-to-day expenses, and was hungry to get started.  I can tell you this with great certainty. Getting started in Real Estate investing with poor credit and no money is a recipe for disaster in my opinion.  I know the hunger you feel, as you want to take control of your financial future, and I support that assertion.  But, please trust me, you need to do a few things first before heading on this journey:

1.  Get your credit in order.  The best deals for financing come to you with better credit scores.  Also, you want to make sure you have paid off any outstanding debts, and the like.  They are nuisances and just slow down your progress to financial freedom.  I worked on paying all my debt off and I am now saving up 6 mos. of income as cash for a rainy day.

2.  Get some money saved. I know a lot of people will tell you they got started with no money down programs or other creative means of buying real estate, and I can tell you this is all true (as I did it initially as well).  

But, and there is a big but here.....

there is some trade off to this approach.  You should be handy and able to fix things if they break or need rehab (and they will), or you are using credit cards to support cash needed, or you have access to a line of credit or a family member with some financial resources, or the seller gives some financing and closing credits, etc.  I see RE investing as a business, and any underfunded business is bound to fail.  There are exceptions, but it is not the rule.  You just don't hear the stories of failure.

3.  Start slowly.  When I initially started in RE investing, I was buying a property every month, for 6 mos. straight, and most of them were purchased for less than 1500.00 out of my pocket.   I was new to RE investing, new to property management, new to the eviction process, new to dealing with all those banks and financial service companies, new to all the insurance needed, etc.  If you have experience in this, then go as fast as your lifestyle will support,  But if not, you better assemble a team of people to help with your blind spots.

For the current deal you mention, if there is someone who can help with the rehab cost, and take ownership in their name, then the deal gets easier.  I would ask though if you have analyzed the deal (I mean hard numbers) and gotten some comps to make sure it will sell for the price you mention?  Use the calculators here to help with that.  Find a good contractor to give you details on the cost to fixup.  

4.  Get a copy of the book "Set for Life" by Scott Trench - It will help you focus.  I wish I had that book 15 years ago.

If I can help you with anything, let me know.

If you want to PM me with the details of the deal, I can help you analyze it.

Good luck....

Hi @Matthew Pastore, welcome back to Colorado.  Your perspective on the weather is spot on, I love living in the Mountains and the splendor of it all.  I have been in Colorado for 9 years now, very happy here.  I attended law school with some of your brethren who were stationed at Ft. Carson, loved those guys.  

I am a new investor in Colorado, working to get my RE license now, and I would be interested in hearing your perspective on being a landlord in Colorado Springs.  Are you self-managing or using a Prop. Mgmt. company?

Hi @Stephen McCauley, thanks for posting this information.  I use the Overdrive app. with my local library, and it is an amazing way to get a lot of books for absolutely NO cost.  I also use other resources at the library for research, checkout instructional DVD's and some older audio books on CD.  Good stuff!

Hi @Landon Mehlhoff, welcome to BP. I am in Denver and also studying for my RE license now. Please note that to invest in real estate, you do NOT need to have your RE license. There are a lot of successful investors here who can support this assertion. To access the listing MLS information that realtors see in Colorado, go to:

www.recolorado.com

Note that the information is not as detailed as the data listed on the MLS, but using this with other data sources should help.

I got this information from the owner of Your Castle Real Estate brokerage, here in Denver, via a podcast, as he was asked the same question, as to if a RE license is needed to invest in real estate (this guy has been in Colorado real estate for over 15 years, 100's of sales with investors).

I am studying for my license, as I want to create a career for myself as a realtor in Colorado.

I think that between the link above, zillow.com and realtor.com research filters, you can get all the comps that  you need.

Hope this helps, and good luck!

Hi @CherTong Her, I think that @Ben Leybovich is right.  You may be looking at this all wrong.  The purpose of "house hacking" is to reduce housing cost, whether it eliminates it all or not is not always necessarily the goal.  Don't over think it, if it works, then it works, I say.  The goal should be a substantial reduction in housing cost.

If you are getting into unit where you have some opportunity to reduce your monthly housing cost and gain some real estate appreciation and tax breaks, if the situation is right, why not dive in. I am not sure I understand how on a duplex that cost 260K, with 5% down and a tenant in the other unit paying $1200 per month (on a mortgage of 1750 PITI), that you would be losing money.

Did you do any analysis of the property using the Bigger Pockets free calculators?

Hi @CherTong Her, congrats on your potential house hack!  It is truly a way to save money and build up a cash reserve.  I would assert that if you are in a position to reduce your monthly home spend, and buy a property as well to get tax benefits and potential long term equity, any cash that you can save is a positive.  

I believe that in some markets, and for some properties it is almost impossible to make sure you have a positive cash flow from a property that you are house hacking.  I live in the Denver market, which is becoming as hot as some coastal properties and very trendy.  House hacking in some of the most desirable areas in Denver is possible (via a duplex, triplex, etc.), but the price of the property (say 550K-750K) will make it difficult to have all expenses covered.

BUT, and there is a big BUT here....

If you find that your out-of-pocket expense for living is significantly reduced through this process, then I say go for it (as long as the numbers analyze correctly and you have done your due diligence to make sure this is the right buy).  Ask yourself, what would you normally pay for housing expenses month-to-month, and does this purchase offset that to leave more of that money in your pocket each month?

I think that most investors here may suggest to continue looking for a property that gives you a positive cash flow through your house hack (which is desirable), but I would not let a good deal get away if you think this property works for YOUR situation (like it has the best location, good outlook on profitability, has a tenant that works for your situation, etc..).

Hope this helps...

Hi @Anna Stratton, congrats on starting to work on a potential deal.  I think however, to help you analyze the deal, you will need to share more of the numbers associated with the deal.  For example, offer price, configuration of home (2bd, 3bd, etc.), geographic location, current rent, estimated expenses, estimated mortgage pmt., taxes, condition of home (will it need fix up? if so, how much money will need to be spent), etc.

You can do all of this yourself by using the rental property calculator, found here:

https://www.biggerpockets.com/buy-and-hold-calcula...

You can use this for free up to 5 times, as a free member of BP.  I suggest starting there, and after filling out this info, return to this thread if there are additional questions.

Good luck!

@Daphne Barber, I am a bit late to the thread here, but by no means is 50 (or any age in my opinion) too old to invest in real estate. I believe that through this thread, there have been so many methods introduced as to how one can invest in real estate (rentals, flips, notes, REIT, partnerships, house-hacking, etc), that you can improve your financial standing by meticulously studying the various methods, picking one as a starting and point and leap. I am interested in RE investing as a means to supplement my retirement income and build a financial legacy for my family. I suspect you are as well.

I have investments in the stock market through a broker and via my 401K, so I am not interested in setting the world on fire by becoming the next RE guru, just ensuring that I will not be squeezing every penny I can from my 401K and Social Security when retirement time comes (if SS is even there).  At this point in my life, I am much more financially secure and able to channel some of my money into other investments, like real estate, which I think will bring better returns.

Feel confident that you are in the right place to learn and network, and please don't think you are too old for any of this.

Hi James,

Is this property still available?