All Forum Posts by: Michele Granata

It seems to be a concensus amongst many investors that the most efficient way to make a first move in REI is house-hacking.

I really aim to make this a reality, however I am not able to do the owner occupant myself. I cannot live in one of the units. 

I have heard numerous podcasts regarding partnerships, especially with David Greene. He would discuss how many properties he invested in with a partner, where one would take on the legality/mortgage, and he would cover the funds. or vice versa. 

Can anyone advise me on how they have done a partnership or known any partnerships that worked well with house-hacking specifically??? 

What worked best, what worked terribly.
Dividing the responsibilities, the cash flow, the equity, etc. 
I want to be able to present the opportunity with a concrete plan. Not just the deal analysis that illustrates the good deal, but a well planned partnership.

Thank you!

Hey Chris! Always a good feeling to see other ICU nurses on this journey. The relatability is priceless. 

Thanks for the insight on the CRNA population. And congrats to your friend for getting in with Rutgers. I've got a couple friends who are in CRNA programs right now and I watched them bust their asses to save before they had to stop working. The lifestyle during that schooling is ROUGH. 

 I can see how a partnership househack would could be excellent in his position, so please feel free to run it by him!

And regarding less expensive markets, lord knows New Jersey is just absolutely insane compared to other regions/states. I would love for my money to go further in a deal, by choosing a more reasonable market. Im waiting to get my feet wet in something local so I build some experience/confidence and then will be educating myself on Out of State REI for sure.

Quote from @Matt Rice:

I'd agree with most of the comments here suggesting that house-hacking is a great first step into REI!
Knowing your strategy, I'd consider reaching out to an investor-friendly agent in your desired market. Give them your Crystal Clear Criteria (Investment Strategy, Property Type, Budget, Property Class/Condition, Etc..). Then if you don't have a lender yet, I'd ask your agent who they recommend. Try not to take a ton of you agent's time until you have the funding lined up! 

From there you can start analyzing properties your agent is sending you from the MLS and when funding is approved, start making offers! You are right, there will always be more to learn, but it is best to get started and ask questions! I don't have a ton of recommendations for finding partners, but I thought I'd share some insight on the other steps!

Good luck in your investing journey!

Thank you for outlining a simple step by step reminder of what should come next in my journey. It's easy to get overwhelmed and question yourself before even getting started. This was helpful, and appreciated!

Quote from @Mark Munson:

Hi @Michele Granata

It seems you are on the right track from your post, in more ways than one. Stay laser focused on one or two things at most. Go deep, not wide. It is easy to get whiplash from all the shiny things in REI. Secondly, the other thing you smartly pointed out, is TAKE MASSIVE ACTION. Don't overanalyze to the point of inaction. Theoretical knowledge is important, but experiential knowledge is priceless. Taking any action is what separates the dreamers from the doers. As a another piece of advice, start with the end in mind. Map out your goals and start from the end when building your system to get there. I'd be happy to share any advice I have, feel free to reach out if you need anything. Best of luck!

This validates a lot of the early stage experiences that I'm going through. Trying not to get overwhelmed with all the info, trying not to let all the "shiny things" get to me, and trying to embrace the education stage without letting it become inaction. 

Thank you for the advice and well wishes! Appreciate you extending yourself as a resource for any questions.

Thanks for taking the time to share this info with me! Yes would be grateful to get involved in this. Will message you!

Believe me, I would love to! That's actually what I'm gearing towards. However I'm looking to do it as a partnership, with someone who would reside there and do owner occupant. Residing in the property, even just for a year, is not on the table for me right now. But I can offer funding and physical work (rehab/upkeep). The trick is finding that partner

 

Quote from @John Barbosa:

Welcome!  I was born in Newark and grew up in the surrounding towns.  I also spent some time living in Newark and managed some properties there.

Are you looking to buy in Newark?  It's one of the few places in NJ that you can still cash flow with multifamily.  Most single family properties won't cash flow here without large down payments because the property taxes are high.

The tenant risk is obviously much higher in Newark because most of the qualified tenants flee outside of the city to more desirable towns.  For example, I can list a property for rent in Kearny and have 10-15 qualified applicants in a week.  I'll also have less turn over in Kearny properties than Newark.

You'll also find it more difficult to fill those units with tenants that qualify with the standard screening criteria that most on here will recommend (ex: 3x income, high credit score).

We're also in a very tenant friendly state so proper screening and management is probably the most important part to success in these areas.

House hacking a 3 or 4 unit is a great way to cash flow and get the first deal financed with a traditional mortgage.

Feel free to msg me with any specific questions.

Thank you for your insight! Yeah I can imagine there's a lot of risk when it comes to tenants in that area. Hoping you didn't have to endure too much hassle for your properties there! Since watching the forum and learning about NJ in particular, I'm quickly learning how favorable it is for the tenants. 

I'm hoping that when I get involved in Multifamily, that it will be in the Woodbridge area. It's closer to where im located, I know the area a little better (big commuting area for sure), and I know a few people living in multifanily properties there.

 Thanks for making yourself a resource. I have a question or two that I might shoot your way. Thank you!

Quote from @Jeanelle Ignacio:

Hey nice to see another ICU nurse on here! My husband and I own a few rentals but still consider myself a REI newbie and ready to expand and take a more deeper dive. This site has a wealth of information...at times overwhelming in the beginning. I'm finding that going through "Learn Smarter Real Estate Investing" under the Learn tab here is helpful. I wish you the best!

Thank you for jumping on my post! Makes me so happy to see a fellow ICU nurse out there doing well in the REI world, especially one with a family. The relatability is such a motivator for me! Thank you for the recommendation on the Learn Tab, and wishing you continued success!

Steven--You make a solid point about a simple first property. I appreciate you putting that concept in view for me. I'm sure even a simple single-family turnkey would provide a lot of learning and fumbling experience for me, and then be better prepared for properties that shape my long-term goals.

And thank you for the step by step reminders!

I appreciate the response and for validating my instincts on getting involved sooner rather than later.

I've read a lot of posts on the forum about the importance of networking at your local REIA, and I think that could make a big difference for someone like me who doesn't have many options in her inner circle. Maybe that's my next step! Hoping to create my success, as it appears you have.

After reading and learning about all investment types, multifamily/househacking is the one I feel best about. However, my ideal partner would be the one seeking to reside in one of the units for owner occupant. Again ideally, that partner would be managing and keeping eyes on property/tenants. My husband (electrician/construction) could be a huge resource for any rehabbing prior to occupancy to obtain competitive rent, etc.

However, I'm very open to BRRRR. I don't intend to dabble and dip into multiple niches at the beginning of my journey, but I am open to those 2 strategies for first start.

Thanks for sharing your experience and congrats on your success.