All Forum Posts by: Nick Scullin

@Zachary Beach Could you explain why I wouldn't be able to go a lot longer with traditional finances? I know you can get about 4 traditional loans. Are you saying that because my Debt to Income would be too high? So then I wouldn't qualify? Because ideally, I'd like to do a house hack this year for one year, then move out, rent out the other half, and repeat.

@Greg Weik Thanks for the insight, especially on discrimination based on source of income. I always hear about people saying 3x the monthly rent in gross income for tenants, but looking at that source is very smart, especially after what COVID-19 has shown to be stable jobs.

@Greg Weik That's an interesting perspective I haven't thought about. Having more units (that equal the price of a larger unit) does mean more things to take care of and more things that could go wrong. 

When it comes to buying property that is higher end with near top rents, are you ever worried about finding tenants? For example, in times like this where some people may have lost their jobs, their family can't afford that 2.5k rent and now need to drop below 1.5k to stay afloat. Do things like this ever happen or do you find that with higher end housing and higher rent comes high end tenants that can weather these financial times?

This is kinda my other concern with going with the more expense units.

Hi guys!

So I've been thinking about this for a little bit and wanted to get some feedback from others. I want to start with a house hack here in the Philadelphia suburbs (as this is where I currently work my full time job). Specifically MontCo. Looking on the MLS (aka Zillow/realtor) I've been able to see duplexes run anywhere from 250-400k (generally). So my question is, if the math works for a good deal and the finances are in place, would you go for the more expensive deal? My thought being that appreciation (the icing on the cake, not banking on it) would be better, theoretically rents higher and therefore higher loan paydown. So if finances and the math on a property make sense and are taken care of, would you go for the more expensive property? This is assuming a low down payment for an owner occupied loan (~5% maybe even 3.5% FHA).

Now I understand there are PLENTY of other factors going into a deal such as looking at the market (crime, neighborhood class, Schools, unemployment, population growth), the tenants you get, what rent is actually going for, maintenance on the property, age of the property and much much more. I'm just asking a hypothetical dumbed down question.

My current opinion is that more expensive is better since it's more leverage starting out and the appreciation will result in more money and the loan paydown should be better. Or am I naïve? Let me know i'd love to hear your thoughts!!

@Kyle Kerekes Congrats on the purchase! You mentioned Philly, did you get a duplex in or around Philly? I'm also looking to house hack here in the near future. I'll have to look into your friend as well. Cheers!

@Steve Uhlig Thanks for the reply. I will check it out! 

@Cole Britting Sounds like you got your head on straight and are really setting yourself up for a successful and fulfilling life! I really do feel bad for you and everyone else in college right now during this time. I do think it's smart for you to save a big chunk of change by staying home at this time. It may suck now, but you'll most likely look back and agree with your choice. I am also optimistic for you guys in the fall!

And yes! Glad to hear you enjoy traveling. Do it now before you have other things in life that don't let you (A job where its hard to take time of or maybe a family and kids if you want that some day).

As for investing here, I have not started yet. I would like to start by the end of the year. I am still very new to all of this and not ready to jump in yet. I just started really getting into in the end of last year. But Philly is a great area with a lot of potential! I've enjoyed it here after graduating. 

A lot of you are mentioning Delco, but does anyone have any opinions on Montgomery county? I know Conshy was mentioned, but anywhere else? I want to start with a house hack and have to be in Montco to commute to work. After this though, I could look into Delco!

Seems weird to think about this considering i'm 25 (am I old yet? lol), but looking back there are things that I would have done a little different, and things that I am very happy I did. 

1. First off, LIVE IT UP. I was always told this by everyone that "college will be the best years of your life." While there is still much to come in life, college is a great time. Instant access to so many friends and activities and the first sense of real freedom in life. Now this doesn't mean be a degenerate who has a 1.0GPA and gets drunk every night of the week, but finding a balance. You will meet some of your best friends here.

2. Choose a degree that will give you access to a prosperous career. I had many Liberal Arts College friends who have majored in things from Historical Communications to Women Studies. They are now struggling to find any career, let alone one that will pay off the large debt. 

3. I would have learned more about everything. Be naturally curious. While there is a lot to learn in school, there is always more to learn. Read read read. I haven't started reading again until recently. There is SO MUCH great information out there at our fingertips and I wish I would have started reading earlier. Especially about personal finance and investing/real estate. This is NEVER taught in school. Be able to budget. Know how to save more than you spend. Know the difference between an asset and lability. You have to get a grip on money if you want to grow any amount of wealth in your life. Debt will hold people down their whole life because they don't want to learn how to manage their money.

4. INVEST. This can be in real estate or stocks. Now I do not recommend trying to be the next Warren Buffet and picking your own stocks. That's wasting time and majority of the time, money. Pick a low cost index fund and start putting money in it. Time is sooooo important for investing. Even though during college you can't add much, you can add some (you should have some form of on campus job for play money and a summer job). Also, get that employer 401k match if that's possible (this would be a couple years from 20). The rest of the money you have can be put towards real estate. But real estate shouldn't start without have your general finances under control (point 4)

5. Travel! Maybe not for everyone, but the traveling around the world I have done has been so amazing! Buy experiences, not objects. That new shiny thing you bought won't be that cool in a month, but I constantly think about great trips with great people. And some may say traveling is super expensive, but I disagree (depends on what we say is expensive). But traveling abroad and staying in Hostels is cheap (~15$ a night) and you will meet great people. And flights abroad can be found for round trips of $250 if you know what you're doing. Again maybe not for everyone, but this is my thought.

@Eric Greenberg Where can I go to learn about all these zoning codes so I can get a better grasp?