All Forum Posts by: Thomas Barrick

@Gino Lomelino All is going well so far! I did the same thing...FHA loan, 3.5% down and live in 1 unit while renting out the other. I am on the outskirts of Oakley. Far east side of Norwood, about a 1 mile walk from Oakley Square. I looked in Hyde Park, Oakley and Mt Lookout for a long time before looking on the outskirts but prices were so inflated, cash flow was hard to find.

Gino Lomelino welcome! I'm local in cincy as well and just purchased a duplex to house hack in June. What parts of cincy are you looking in??

@Gene D. I would agree with Jacob. Norwood is a very block by block neighborhood. I own a duplex in Norwood on the far east side bordering Oakley. A lot of young home buyers and renters moving to the area as Hyde Park and Oakley prices are significantly higher. 

I would highly recommend not cashing out the 401k nor would I stop contributing if your employer offers a match. In most cases a company match is a 50-100% return on investment right away which you won't find in any other investment vehicle. If REI is a goal, contribute enough to get employer match and then heavily fund a savings or brokerage account. The property would have to have significant returns to make up for the tax burden and loss of company match to be a net gain for you. If looking to use your retirement assets, a 401k loan could be much more advantageous as long as you can afford the loan repayments. This is also assuming you are still active with the employer that offers the 401k. -Tom B

Ray, I am in Cincinnati, OH and I purchased a duplex last year and currently house hack. Feel free to reach out if you have any questions! -Tom

Kevin Joiner I am in Cincinnati and have recently (4 months ago) purchased a duplex with an FHA loan. I live in one unit and rent out the other. There are different areas throughout Cincinnati with a lot of multifamily (2-4 unit) properties. That said, I would certainly suggest working and getting some W-2 income under your belt. This will be extremely important when getting financing from a bank. When are you moving to Cincy and ideally when are you looking to purchase? Good luck!

Jacob Perkins certainly. I am a pretty conservative person so I probably over saved. In negotiations, I was able to have the seller pay closing costs which allowed me to keep an emergency account very healthy. I paid $164k for my duplex. 3.5% down= $5,760. After I closed, I still had 8-10k in liquid cash. I'm sure some younger buyers have much less but again, I purchased an older house (early 1900's) and I'm conservative. Hope this helps.

Jacob Perkins Hey Jacob. Although your goals are a bit different than mine, they are certainly attainable. I am 27 and bought my first property last year. One of my biggest regrets is not starting sooner. I work in finance and I heavily funded retirement accounts early on rather than real estate. However, I purchased a duplex with an FHA loan and house hacked. I live in one unit while my buddies in the other unit pay my mortgage. Save money, work part time and jump in. I am in Cincinnati, a lot of older properties and I understand your area is similar...ensure you have an emergency fund set aside after covering down payment, closing costs, inspections etc...good luck!

NA Waddell I am very new to REI as well. I am in Cincinnati, OH and there are many neighborhoods filled with duplexes. I purchased a duplex using an FHA loan. My property was 164,000 so I put 3.5% down and the seller paid closing costs. I use the house hacking method....living in 1 unit and renting out the other to a few buddies, having them pay down my mortgage. One suggestion I would have is to ensure you have sufficient funds set aside for unexpected expenses after closing costs, down payment, inspections etc...A majority of the properties in my area were built in the early 1900's. Save some money, listen to the podcasts, read and jump in!

Marcus Hendren nice to see a familiar face on here. Didn't know you were into real estate investing. Hope all is well!