All Forum Posts by: Ryan Thomson

Hi @Nathaniel Yip you should be able to count 75% of the leased rent for the units you won't be living in. That should be a massive help to what you can qualify for. You need to connect with a lender over the phone and see what you can qualify for based on the other units being rented out. 

@Jun Ho Lee Awesome! For resources I really like the following House Hacking episodes on Bigger Pockets Podcast: #352, #252, #350, and #249. Also Craig Curelop's book on House Hacking is also a great resource.

@Christopher Tile House hack will surely be better returns since you only have to put 5% down and you can count your rental avoidance in those numbers. While it is 0 in your parents house for now, I imagine you don't want that to be the case forever. 

For resources I really like the following House Hacking episodes on Bigger Pockets Podcast: #352, #252, #350, and #249. Also Craig Curelop's book on House Hacking is also great.

@Tyler Whatcott what about a HELOC to get some cash from your townhome? Also I have converted two garages with private money from different friends and family. Consider calling your friends. Lots of people have cash and are interested in getting a good return. Some of mine are for 6-10%. The loan payment was significantly lower than what my garages now make me on airbnb or with long term tenants. Another way to use good debt to increase your cashflow.

@Eric Doe Completely agree with @Dave Spooner a CPA is worth every penny. Have you considered a 1031 to postpone the taxes? 

As far as calculating - did you live it for the last 2 years as you flipped it. Because that would help you avoid the taxes completely. 

@Foster Mefford it sounds like you are very driven and I wish I was thinking like you at 19! Here is an interesting idea. Use your knowledge and drive to convince your parents to get a home near your college. Co-sign with them and put some money down with them if you can.

Buy it as YOUR primary residence with your parents as the co-signers. This would allow you and your parents to only have to put 3.5-5% down. Then you rent out the rooms to your college friends. This will probably allow you to live for free and your parents to avoid a dorm or expensive home payment while you are in college. Not to mention you can both cash in on appreciation and loan paydown.

If you really wanted to scale, you could do this each year. Rent out the last house to a new group and move with your friends to the next house. This is a great way to scale and you only have to put 5% down if its your primary residence each time.

You obviously need to convince your parents or (someone who would co-sign and help with the downpayment) about how good of an idea this is. But if they are savvy money people and they trust you (which I bet the do), then this seems very doable.

@Nathanial Cook welcome! As far as financing goes I have a thought that might help.

If you wanted to continue to house hack (live in one unit or room and rent out the others). AND you are willing to move each year. You can actually scale relatively cheaply. If you plan to move into a new home you could get a 5% down "primary home" loan each year. Reporting your income from your renters will allow you to offset some/all of your loan and qualify for the next one with your W2 income alone. 

@Colin Smith Big fan of this meetup!

@Bruce P. good question. Haven't thought too much about a rule of thumb for this. I would ask other people what they are getting for a bedroom. Maybe start a little higher if you have the time and walk the price down if it doesn't get rented. 

@Liam Nichols it sounds like you are very driven and I wish I was thinking like you at 17! Here is an interesting idea. Use your knowledge and drive to convince your parents to get a home near your college. Co-sign with them and put some money down with them if you can. 

Buy it as YOUR primary residence with your parents as the co-signers. This would allow you and your parents to only have to put 3.5-5% down. Then you rent out the rooms to your college friends. This will probably allow you to live for free and your parents to avoid a dorm or expensive home payment while you are in college. Not to mention you can both cash in on appreciation and loan paydown. 

If you really wanted to scale, you could do this each year. Rent out the last house to a new group and move with your friends to the next house. This is a great way to scale and you only have to put 5% down if its your primary residence each time. 

You obviously need to convince your parents or (someone who would co-sign and help with the downpayment) about how good of an idea this is. But if they are savvy money people and they trust you (which I bet the do), then this seems very doable.