All Forum Posts by: Nicholas L.

@Melodie Cornelly

hello.  here are some things you can do.

-ask questions in the forums here.  specific is better but general is fine too.

-go to real estate meetups in person and talk to folks there.

-learn about house hacking and save up for a house hack.

house hacking is the best way to get started, period.

hope this helps

@Seth McGathey

just to add to your post a little - that sounds like a great find.  i think you said you put 20% down, plus closing costs, plus the light rehab, is that right?  so - almost $80K in up front, in order to cash flow $500 a month?  

i just point this out because i think new investors don't understand the initial outlays.  they hit a big repair and their "cash flow" dreams are crushed.  and that isn't how this works.

@Jeremy Ulcigrai

start with a house hack

So you'd buy a property and it would be your residence, but you'd also STR it - some, or all of it. That way you're building equity and getting experience doing STR.

Obviously the configuration would depend on the location - if it's a duplex can you live in one unit and STR the other? If it has a finished basement with a separate entrance, can you live in the basement and STR the rest? It just beats arbitrage because you own it.

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@Bridgette Ray

hi.  i was going to say to hire an agent, but it sounds like you have one.  what do they think?  they should be guiding you on what to offer, and what comps say about the value of the property.

i would definitely, 100% not try to buy something subject to, and it doesn't sound like the seller would be interested anyway, because in a subject to arrangement, there aren't any "proceeds."  you just take over the mortgage payment.

payoff likely means his mortgage balance.

i don't know this market so not able to go much further than that.  maybe some local folks will see this and chime in.

@Lauren Blumstein

i don't know anything about you or your friend / mentor but in general, yes, it doesn't make sense to start out with a 100-unit.  i'm not sure how you'd finance it either... 

@Jason Eyerly

i said this in another post but why not house hack an STR? it seems like you're in the perfect position to do that.

@Michael Zagorsky

i totally agree with your first point.  margins on real estate have been compressed because prices are high, rates are high, and demand is high.  i keep getting outbid on deals and wondering, how are they going to make money on that?  do they know something i don't?

but, with that said, i don't know that the ONLY other option with cash is just pay down your mortgage.  that's a very personal decision that i wouldn't be comfortable advising someone that i don't know on.  that's not a bad rate.

@David Robert

I'm not an expert, but I do know that the ACA tax credit is based on your income, and so if you're putting in your current income, then yes, the plans will look expensive.  the idea is if your income is lower you get a tax credit that offsets the premium.

maybe you know all that already but i figured i'd throw it out just in case.

@James Hamling

yep i'm mostly sticking to making seller finance offers on real estate and getting rejected.  am really enjoying your and @V.G Jason's perspectives.