All Forum Posts by: Nate Monson

I think you've already got the main idea down. Househack. At your age if you start this way and save a majority of your income, you will set yourself up to continue to invest and build up a base of properties very quickly. You could either continue to house hack or start looking at non-owner occupied investments if you end up liking where you're living. If the goal is to build long term wealth, 90% of the battle is getting started with that small base of a portfolio and it sounds like you're in prime position to be able to do that through house hacking. 

Along the way as you gain more experience you may be able to find ways in your market to add value through rehab or changing the make up (bedrooms/baths sqft, etc.) of a property. The rest of my advice would be about surrounding yourself with the right people in your new environment. Likeminded people will keep you away from distractions and encourage you to keep pushing even when things seem hard (and you will reach a point where things seem hard). Keep learning and keep taking big swings that others may feel are risky. You're going to do great!

@Denis Vaughan hi Dennis. I’m an agent and investor in the area. I’m going to send you a DM.

Hi @A.L. DeFalco at that price point in Albany you can expect work for a duplex. Even in locations such as arbor hill properties are trading closer to 200k than 100k for something turnkey. As stated without knowing the condition it's hard to say if it's a good deal. But if you can get it that low...assuming you'd be at an ARV around 200k that could have some potential. Being out of town you'd want to get a better assessment of your tenant potential here as well.

@Devon Fitzpatrick I agree that we'd need a little more information to determine if it's a "good deal" or not. However what I would say is even if you come up with break even numbers on your first flipping deal, it may be worth executing as doing this will be more valuable than any education you could pay for. So be careful to not lose tens of thousands of dollars. But to me it's more important to get started and maybe not make a ton of money on your first one than wait and wait and wait to find the perfect deal.

Hi Michael,

I don't have exact numbers in front of me. But in my experience properties in Albany are not that difficult to rent out. Of course a municipalities vacancy rate is going to be speaking to the average landlord. But those who are diligent with their marketing and screening will have more success. When I owned a duplex in Eagle Hill I had many applications that fit my criteria for the units. I am now in student rentals which is a bit of a different game but so far it's gone well in that space too. Feel free to reach out if you'd like to discuss further!

Hi @Kyle Barnhart generally these duplexes in Albany under 200k will cash flow on paper. But there are layers to that. If you aren't running a tight ship tenants can ruin those on paper numbers very quickly. 

But Albany is a stable cash flowing rental market that has been positive for investors for decades. 

Hi @Jacquelyn Place I am an agent and investor in Albany, NY. Would love to connect!

Hi @Dillon Nimako I am an agent and investor in Albany. I'll shoot you a message!

Hi @Manuel Almonte I am an agent and investor in Albany NY market. The market is pretty competitive on the MLS right now. Most places that are priced reasonably are experiencing 2-5 offers on them. Using a conventional loan is better than other options, but doesn't give you much leverage against other bidders who are using the same type of loans. There are a few other things that you can do to make your offer look more attractive, would be happy to discuss with you. Unfortunately, if there are multiple offers, offering 25k lower than the asking price is never going to get you the deal. Ill shoot you a PM.

Hi @Andrew Curro

I think a lot of this advice or success stories came at a time when the market was a lot more balanced. Not just in Albany, NY but nationally. Today inventory is low and buyers are still everywhere. The person who had gotten that house for 10k 5 years ago probably was able to negotiate concessions from a seller where in this market it's harder to do that.

Many have mentioned your closing costs are too high, for an owner occupied loan that is correct (if your lender is quoting you that you need to change lenders). 

I would also argue that an emergency fund is probably not necessary. Why? Because at some point there's going to have to be a level of risk you take on in pursuit of higher returns. If you're a more risk tolerant person it's not the end of the world, it's just going to be harder and take longer to achieve those higher returns. 

On an owner occupied house in Albany selling at 400k, you shouldn't be having to do much renovation if any at all. 

So with a realistic closing cost estimate of 8-10k and your down payment of 14k this becomes a lot more manageable. 

So to answer your question, I think comparing that advice to the situation you're in right now is hard because the markets where that advice came from were different. But I do think some of other things I've laid out you could consider to make this acquisition a bit easier. Good luck!