All Forum Posts by: Nick Giulioni

Building in California is a nightmare - and the Bay Area is crazy expensive.  I hope you are prepped with a lot of capital and time.

Would love to follow this thread as well.

 100% agreed!

@Edward Liu House hack refers to you living in the property, not value add proposition.

@Andrew Martherus Figure out how much you are spending in rent every month. If your total out of pocket post-repairs and Capex is less in the house hack, why wouldn't you do it?

It's not a rule. It's a rule of thumb - a shortcut to quickly estimate how effective a deal is.

I would actually say that house hacks are largely the exception to the rule because you would be offsetting your own living expenses.  

Do you have numbers?  Would need:

• Acquisition price
• Cost of repairs
• Estimated ARV
• Your current rent payment
• Estimated rent per unit

Hey - that question is too broad for anyone here to answer. It depends on how you acquired the property on the front end. Did you buy cash? Did the seller carry the note? Did you have a conventional mortgage that you are refinancing? 

I’m going to assume for the sake of your question that it’s the last one (but let me know if different).  Generally speaking your monthly payment goes up because you have stepped up the value of the property and are thus borrowing more money against it. This reduces your immediate cash flow but also your cash invested in the deal.  You shouldn’t need to come to the table with more cash unless 70%-75% of the value of the home is less than your current note.

 100% find someone where you are buying. You want someone more knowledgeable about the area than you representing your interests.

I highly recommend having an agent as a member of your team for a variety of reasons - the most important of which is to have an advocate for YOU.  If you are going to start investing out of state, David Green has a really good book available here that you should really read first.

Good work bud! That's how my wife and I got started! :)

That's an incredible project. Thank you for sharing and congrats!