All Forum Posts by: Sarah Meres

Lots of great insight from the folks above.

In my experience as an investor and multifamily lender in the twin cities, I would simply say there is no "right" answer. I have seen people do this a variety of ways and you should assess it more on a case-by-case basis. My own personal househacking progression was SFH, SFH, Duplex, SFH, Duplex. Since then, I have been able to leverage equity from those to finance non-owner-occupied deals. Cash flow on each have fluctuated. I have a tenant going on his 8th year in my duplex, meanwhile one of the SFHs have turned over almost every two years.

I agree with the pros and cons above - one thing I don't see listed yet is how the property type last purchased affects your ability to buy. For example, if you start with a big single family home in the suburbs, then want to hack a 4plex in Minneapolis the following year, there will be questions regarding your true intention to occupy that 4plex as your primary. Not impossible - but a hurdle, indeed. Generally, for this reason, it's best to move from more units to less. 

I would say, keep your options open and assess the deal presents itself!

Who are we using for property management these days? I have always self-managed, but looking for some referrals and comparing services and cost for my 2-unit property in White Bear Lake, MN. It's cashflowing $1500/mo as a long-term lease, but I would be open to STR if it makes sense.

A huge welcome, Christohper! This is such a great community and there's a ton of info and great resources here. I work in the financing space - there can be a lot of ways to buy. I am happy to connect this week.

@Bryon Andrews posted here - he's a wealth of knowledge and a phenomenal agent to start your journey. Would definitely recommend meeting up with him. I have worked with Bryon professionally as well as my own personal investments in the twin cities. 

@Pavan Kumar - Same goes for you and a HUGE welcome! When is a good time to connect this week?

Hi Justin, You might want to consider a "gift of equity." In short, this could allow you to buy the property from your parents at market value, but they gift you the difference between the value and what you agree to pay. Generally these are allow for primary homes or vacation (secondary) homes and not investments. So, you would need to ensure the new payment is doable without the support of investment income.

Example: Value of the Sarasota home is $600,000 and you all agree to a purchase of $300,000. Instead of doing a 20% down + closing costs on $300,000 purchase price, you could potentially buy it for $600,000 with 50% down and the "gift" from mom and dad is the equity they're giving you. 

The advantages to this are - no cash out of pocket for you, no mortgage insurance/likely better rate, and retaining the real value of the home. Say you decide to sell it next year, it would be better for buyers to see you bought it for the real value $600,000 rather than $300,000. 

Reach out if I can help with a call!

 Thanks for the connection, Joe!  Bryce - HUGE congrats on your first househack. I work in this space specifically (roughly 70% of my clients are multifamily househackers between the states of Florida and Minnesota) and I have completed 5 househacks personally that are all performing well. I was fortunate enough to be mentored by partners who helped me scale as quickly as I did. Now I am able to leverage equity in those previous properties to buy investments without the moving boxes :)

There are quite a few 5% down conventional programs to choose from and my specialty is tailor fitting you with the best one for your short and long-term goals. No matter who you choose to work with on your transaction, it's absolutely vital to ensure they're willing to do pre and post transaction education. A "point A to B" lender is not what you need in this space. 

DM me and we can chat through your situation and goals. 

Hi Connor, some of the lenders above have great points. Make sure you work with someone who is incredibly knowlegable in this space to ensure you're getting set up in the best program for your current and future goals. I love that you have done your research - the next step is absolutely finding a great team. 

@Joseph Stern - can you help Connor? If nothing else, just a connection to discuss your insights on the area?

So many great insights above. Here's my gut reaction: 

Don't sell, unless they and you think this is a poor long-term investment. Sarasota is still growing. I have a property in an "old Florida" / No HOA area. Homes on my street are slowly being purchased, knocked down, and built back up due to proximity to the beach. At a bare minimum, if they choose to keep the home, get a HELOC while it's still their primary home. This can allow them the cash if needed for the new purchase in the Midwest. I would not refi the FL home if the first mortgage is at a low rate and they don't need the cash out of the property right away.

Owning two homes doesn't always mean having to play landlord. I own several properties in Minnesota that are all professionally managed. There are expenses from time to time, but the day to day is handled and covered by the rent I receive!

Hi There! There are some excellent resources within the Minneapolis community and very frequent meetups. The tricky part might be finding something you can visit without being in person. The Twin Cities network is small but incredible. @Bryon Andrews - is Upside planning to stream/post monthly meetups for local investors? Theresa might get a ton of value from the information your team is putting out there each month. 

Hi Thomas - lender and investor in Sarasota, FL here! I agree with the poster above. It's generally best to secure a property while demand is lower and the market is soft. You're more likely to get a great deal. Have you heard the saying "marry the home, date the interest rate?"

Now, depending on how long you plan to be in the property before moving to a new place, your lender should help you decide how aggressively to buy down the rate. This is a bit more complex piece I would be happy to talk to you about over the phone (I will DM you).

In summary, it's still a great time to buy!

Hi Gloria, I’m PMing you now. I have some ideas for you!