All Forum Posts by: Nathan Brock

I would maybe do side hustles to increase your income. The alternative is moving to somewhere cheaper or find a higher paying job. If you are house hacking you just need to focus on saving up the DP which is not bad. TX is competitive so I'd imagine it can be tough there. I am in the Midwest and there is always demand for housing, room by room is very market specific so that depends

Agree on side hustles 100%. I am currently boosting cash savings with DoorDash. Nice thing is the tax deduction for driving jobs nearly covers the revenue, so you won't pay much in taxes on it. I can pull it off even with super high gas prices in PNW.

Also, in my experience, "career growth" in the W2 world is slow and agonizing... wouldn't count on it if you're an investor.

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Quote from @Kimberly Abeln:

I use Census data, Bureua of Labor Statistics, Chamber of Commerce info, and city websites.

I agree. As a data analyst, I will add that census is always outdated / inaccurate, so you won't see changes fast enough in growth markets. City websites are a great bet. This company called Zoom Prospector / GIS Planning does great demographic stuff in the PNW and Midwest.

You can also purchase data... costs a few hundred, but may be worth it for scoping out-of-state stuff. AGS is the company we purchase from currently. Updated biannually.

Lastly... don't buy anything that is re-aggregated census data. be careful to purchase only if it is collected by the company purchasing from. Otherwise, you're buying "secret sauce" projections, not real data.

Hope this helps!

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Quote from @Karen Chow:

Hi fellow Oregonian! It is super expensive here, isn't it. I have a primary, and just researching and learning about buying my first investment property.

Same here! Will be tough, but I know they exist!

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Quote from @Benjamin Aaker:

I like that you are running the numbers, but usually it's best to own a primary residence. There are many benefits beyond the mortgage.

The biggest is equity. Right now, you are building equity for your landlord (as a landlord I thank you), but with a primary residence, you build that for yourself. Have a look at an amortization schedule for a new house and subtract the principal payment from each moth when comparing it to your rent payment. Also keep in mind that your principal payment increases every month you have the mortgage. That'll give you a more apples-to-apples comparison. Also, there's a big tax benefit from paying your primary home mortgage that you are missing out on when you rent.

I totally understand wanting to get started investing and I applaud you. Just make sure you consider the things above before you do. But wait! There's a better way - house hack. Buy a 4 plex and live in one. You get to be a landlord, build equity, get tax benefits, and get an FHA mortgage. It's great! You are in a perfect position to do this. Let us know what you decide and best of luck.

Thanks for this detail! Looking into house hacking as well... Seems to come with its strong advantages.

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Sounds like it's possible to buy investment first, but probably more efficient to work on owning my primary. Appreciate the note on tax breaks. Didn't consider that.

Thanks for the help, all!

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Thinking about this more, it might be advantageous to simply house hack, move out, rent, repeat.

Otherwise, it looks like I will have to find a way to buy the house, then get more than one unit out of it.

Thanks for the thoughts, all!

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Quote from @Jon K.:

Quote from @Nathan Brock:

Hey there!

I live in Central Oregon and work for a home builder. After my generous employee discount, asking prices are lower than most (if not all) resale prices in this area.

Understanding that BRRRR homes should be "distressed" so that the flip adds value, my question is:

How can you "add value" on brand new homes? What are the highest return strategies to increasing refinance value on new homes?

I want to flip, refinance, and rent the properties.

Thanks for your expert advice!

Nathan

Howdy Nathan,

How much of a discount are we talking about here? There isn't going to be much of an opportunity to improve the value of a new build through a remodel so unless your discount is something along the lines of 20% or better, this may not be a good fit for the BRRRR strategy but that doesn't mean that it isn't a good opportunity for a different strategy.

Just thinking out loud, maybe it could be a good fit for a lease option or rent to own play.

Usually around 10-12%. It is a flat discount.
Rent to own is definitely an idea... Will look into that.

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Hey there!

I live in Central Oregon and work for a home builder. After my generous employee discount, asking prices are lower than most (if not all) resale prices in this area.

Understanding that BRRRR homes should be "distressed" so that the flip adds value, my question is:

How can you "add value" on brand new homes? What are the highest return strategies to increasing refinance value on new homes?

I want to flip, refinance, and rent the properties.

Thanks for your expert advice!

Nathan

1 Vote

P.S. I work for a home builder and get a generous discount on new homes... They currently sell attached duplex/triplex/quadplex in Central Oregon at prices LOWER than MOST resale closings on MLS.

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Hey there!

Mortgage rates make buying a permanent residence painful and costly... I live in central Oregon, a HIGH cost of living area...

I live in a great apartment complex and rents are at least $500/mo lower than a typical mortgage here.

I am thinking about buying an investment BEFORE my permanent residence to keep my monthly CF and savings high.

What are the pros and cons? What should I keep in mind?

Thanks for your expert help!

Nathan

1 Vote

All Forum Posts by: Nathan Brock

Nathan Brock has started 3 posts and replied 23 times.

Post: Starting Out Today with Low Income

Post: What are the best websites to gather economic data for choosing a market?

Post: Can I buy my first investment property while still renting?

Post: Can I buy my first investment property while still renting?

Post: Can I buy my first investment property while still renting?

Post: How can I invest in new homes?

Post: How can I invest in new homes?

Post: How can I invest in new homes?

Post: Can I buy my first investment property while still renting?

Post: Can I buy my first investment property while still renting?