All Forum Posts by: Taz Zettergren

@Kevin DiMaggio  That 3.75% rate is something that will rarely happen again, I wouldn't pay a penny more than your mortgage on that one. If it's feasible I'd keep house hacking because that will give you the best return over the long run. 

Congrats on such a successful investment! Best of luck on your next move

@Nicholas Betancourt welcome to the forums and congrats on the first post! First off, as a whole single family homes weren't made to cash flow but after 08-09 happened it allowed them to be much more favorable and we are still benefiting from that. How far in the negatives are you and what kind of adjustments are you using in your calculations? For a house hack with a first time buyer most will use a fha loan which allows for a 3.5-5% down payment. With that little down it's going to be challenging for anything to cash flow once you move out and rent your space but that's not what it's all about, the equity growth is far more valuable than the little bit of cash flow people would like to see. As long as you aren't too deep into the negatives, with the house hack you'd be living in a property at a very small initial investment (compared to 25%) down while having a reduced mortgage payment as you gain equity in the home, and in TX it'll be quite a bit more than most other states in the US. As long as you're in a good location where you see the rents and values continuing to go up over time it'll be a homerun in 10-20 years if/when you decide to sell or refinance. Remember in real estate it's about the long game, being a generational wealth builder, not so much the immediate cash flow. That'll grow over time as rents increase but you will only see true cash flow when the mortgage is paid off and you own the thing free and clear.

Hope this helps, best of luck investing! 

@Darius Mcclelland I've got a reference for you. feel free to dm me

@Michelle Crochet please send me the info on this one

@Andrew Rellinger if the carpet is in good shape and newer I'd leave it as long as you can. That way if your cat does destroy it over time at least it's the carpet that came with the place and not the brand new lvp. Once the carpet has to be replaced that's when I'd instal the lvp

I don't like to put letter grades on neighborhoods because it's so subjective but @Michael Smythe did a very good job explaining the trade off with risk vs reward in the different types of neighborhoods. The nicer area's you're giving up some cash flow for the consistency of the clientele and in my experience I've seen those areas appreciate better over time as well. 

Personally I like the A-B neighborhoods, south of the mason dixon line (the winters aren't as harsh), because it's a safer more consistent investment with the rental clientele you're working with and it's almost guarantee'd you'll get every dollar invested back, of course if you buy the right deal. Memphis, Little Rock, OK and AL are all great markets where the price of entry is low, laws are landlord friendly and they're still cash flowing. If you have any questions don't hesitate to reach out. Best of luck investing! 

@Matt Salem welcome to the forums. If the price point is feasible I'd advise to do your first flip locally that way you can build systems and processes and gain the experience of doing a flip while being able to monitor close by. Going out of state might be riskier if you don't have the teams in place, but there are several investor friendly agents who could assist you. Best of luck on the journey, let us know how your first deal goes! 

@Detrick Bell welcome to the forums and congrats on the first post! Are you looking for passive investments that are fully renovated or will you be adding value through renovations you are doing? Really depends on the route you are taking as to market I'd suggest. If you are getting your hands dirty I'd say stay local because your appreciation will be better long term but if you want the passive route there are several markets east of you and maybe north. Memphis, Little Rock, OKC or Tulsa would be great markets. Feel free to reach out if you have any questions, would be happy to share my experience and two cents. Best of luck on the journey! 

Thank you all for the references

@Kathy Diamond I'm not sure how to find that info but I know Memphis has ample of opportunities that meet the 1% rule