All Forum Posts by: Nitit Chartuprayoon

@Jon Schwartz

Message sent!

Thank you!

@Jon Schwartz

Thank you for the tips! Since you've done this before, may I run my calculations by you on certain property and see if my calculations are good?

@Abe McLaurin

Sure, we can connect and talk more! I haven't rule of the idea of investing out of state. I just went with this strategy because I'm just getting start in REI and I wanted to learn in an area that I already have some idea about.

@Forrest Faulconer

The property would be break even right now as a full on rental renting out the whole house. If I do house hacking while living in 1 of the rooms, then it is not covering all of my mortgage and expenses. However, I will be paying down the principal of the loan and earn equity in the process instead of paying rent. 

I agree that 60k is a lot to dump into a house just for it to break even, but the market in SoCal is really high at the moment. I was thinking of long term hold with appreciation as well as, like you said, paying down principal, raising rent, and PMI falling off eventually.

I'm just wondering if anyone would buy a house in SoCal market to break even when you have to put that much money down up front with the current market right now or if it's even a good idea.

@Cody Bacon

Ok, so for example a house I did an analysis on is a 4 bed and 2 bath house. If I lived in one of the room while renting out the other 3 rooms, then I am not covering all of my mortgage and expenses. However, if I rent out the whole house as a full on rental, then I will be making even. The only difference with renting is that I will be paying down the principal and earning equity in the process.

Originally posted by @Twana Rasoul:

@Nitit Chartuprayoon that’s usually the expectation when buying here (to be negative or break even) unless you have quite a bit of value add opportunity. Pretty much everything I’ve purchased has been initially negative but through raising rents year, value appreciation, debt pay down, etc there are many solid investments if you hold long term. Again it’s only negative initially...you can actually raise rents here a decent amount each year and should get to break even or positive in a few years.

Best of luck

How much money down did you do and how long did yours usually take for it to start making money? Did you focus on A/B neighboorhood and area or did you go for C/D neighborhood with lower income people where properties are cheaper, but tenant quality isn't as good?

Sorry, for some reason it posted twice. I don't know how to delete one. I'm still new to this forum :(

@Will Fraser

Hi Will, that is exactly where I'm at. I'm putting 10% because 3% or 5% is attractive enough in this current market as well as not enough for the house to break even. This will be my first property and my first step into REI, so I was hoping to learn the stuff in my area first before trying out of state. I don't know anyone out of state to build my team, and I am still learning everyday. I'm afraid to jump into long distance real estate investing at this moment. However, it's not an option I have eliminated because of how expensive the SoCal market is.

@Nathan Gesner Hey Nathan, I used the 4 square method that Brandon did an example of on YouTube and followed that guideline with vacancy and everything else that he mentioned in that video. 

Hey everyone,

I've been doing a lot of research educating myself on REI. I decided to look for a SFH or MFH to house hack and eventually turn it into a full rental property later on. I am looking to buy and hold the property and bank on the appreciation of SoCal market. This will be a long hold. I try to analyze a property as if it's going to be a full on rental without me living in it because with how the market is right now and in the area that I am in, I will never break even just house hacking.

My question is, would you guys buy a property that isn't making any cashflow but also not negative cash flow in Southern California market? In the future, it could cash flow as rent increases as well as when PMI falls off, but it won't generate that much cash flow. The area I'm looking at is Ventura County specifically.

Thank you,

Nitit