All Forum Posts by: Account Closed

Thanks Martin! Who knows what 2021 will bring but I am still planning to buy!

Currently I am house hacking(living in a ADU above a garage and renting SFH). My Mortgage and Utility payments are covered with the tenants rent. My plan/goal in 2021 is to buy another househack. However, I want to be self employed as I have started a few side hustles and want to take them full time. How hard would financing be if I took this route? I am single no kids no debt(except mortgage).

I have $20k saved and I am about halfway through a rehab on the ADU that I live in. Would It be a good idea to possibly refinance the house since the ADU is much improved or do appraisers not consider that a huge value add? I have only lived in this property since April 2020.

I really enjoy my sidehustle(reselling clothes online) and rehabbing homes and I feel that I can bring more value/creativity to my rehabs if I didn't have my 9-5.

Not sure my next move, any suggestions on how to be self-employed and househack effectively? All input is welcome.

I have been in this exact situation for my first househack. I would call them a little before(or soon after) you close and let them know that you have plans for the property and they will need to vacate. It depends on if they are month to month or if they have an existing lease. 

Be friendly and understanding of their situation but assertive and clear about your intentions. In my opinion, you should steer clear from buying a property with existing tenants... its not always easy to remove them and can be emotionally and mentally taxing but if you have to buy with tenants your first property and its a good deal then it may be worth it.

I have never heard about that 2nd Lien option either. I would like to know more...

I lived there from 2015-2019 and didn't see much opportunity for what I was comfortable with - however, I think a viable option, (albeit hard to find) is to find a Accessory dwelling unit somewhere in Phoenix. Or do a room rental. We found an amazing roommate in our condo we rented on craigslist and worked out perfect. 

Depends on what your comfortable with but the Phoenix market is very much newer homes and many are single family units and not multifamily. I personally liked the Phoenix area(Camelback / Biltmore) very much, and see lots of improvement in that area over the years even when I lived there. Scottsdale.... not so much my style.

The administration's affect on real estate will depend the unemployment rate and businesses shutting their doors due to COVID. I personally don't see much of a price decrease for homes in 2021. It takes a LONG time for homes to decrease in value. Its not a stock. Look at 2008-2015. Housing market started massive foreclosures in 2007 but the housing market didn't hit rock bottom prices unit 2015 in most areas.

I have not received any issues and I ordered about a month ago...

Saved $2k a month on a $55k salary, in a less than a year had $20k saved - used this as my first DP for a househack. 

I think Columbus is a great place for your first house hack for a few reasons - Its a landlord friendly state, steady housing application, and compared to other cities its affordable(housing prices are rising quickly though right now). 

I think this is one situation when you have to listen to your intuition if your personally ready to move. Deep down you know if your "ready" or not.

How often you want a distribution is up to the owner. I would not base the decision off of the net income as this is only one month of financial reporting income minus expenses. Also - in accounting contributions/distributions are a balance sheet item, and some income statement formats do not show distributions.

 Its best to take into account your month ending cash balance(shown on a general ledger) then subtract mortgage, monthly expenses and any expenses that are one off expenses that you may expect to incur(replacing A/C unit or other large items, even if not for a few months) and any other cash reserves you want to keep on hand - then take out your distribution amount.

Basically, getting into the basics of accounting, your net income is NOT your cash balance. Its the difference of income vs expenses in a given time period. Hope this helps.