All Forum Posts by: Tien Nguyen

@Daniel Molina 

The numbers are as follows, the house we are looking at would cost 150,000. 

According to the amortization calculator 5% down would be $7,500 and the monthly mortgage would cost $845.64 with Insurance,Tax. 

On 20% down it would be $30,000 and the monthly mortgage would cost $744.60 with Insurance,Tax.

Yes that is our goal, to live there for a bit then find another property. I want to live there long enough for the market to cool down a bit. Of course I don't want to pay PMI but I also don't think putting 30,000 down is a good idea just to avoid it, that money could be used towards a next investment or repairs and such.

Hello,

My wife and I willbe buy our first single family home soon our plan is to use real estates as a means of eventually retiring early. My wife wants to put down 20% for our primary residence house which would cost us 30,000 in order to have a lower monthly mortgage and avoid PMI.

I think our money is better spent if we just put the minimum 5% down and save our money for future investment. What do you guys think is better.

On one hand if we put the 20% down we would not have PMI and our monthly mortgage would be 100 cheaper (745) and theoretically could cash flow better when we put the house up for rent 1 year from now.

On the other hand if we put down 5% we would have to pay PMI and our monthly mortgage would be 100 more (845) but it would enable us to save our money and purchase another house quicker.

What do you guys think ?

 @Joseph Vu, yes ideally that is the type of property that I would like to get. I would absolutely Love to house hack. Unfortunately in Indianapolis the plexs are located in dangerous areas lol. I started to look for houses this April and all of them are in hood areas. There were one or two outliers that were located in a decent part of town but the way they were priced there was no cash flow to be had. I will keep looking. Thank you for the advice and the welcome !

Thank you @Anthoney Hanks !

 Thanks Kenny, yes I think this is the direction we are going to go. I have no problem starting small plus like you said we could learn along the way and plan the change. I really hope the market levels a bit I really want to own a property and get started but for now we will wait out the storm and educate ourselves on real estate until everything slows down a bit.

Thank you Dmitriy and thank you Anastasia for the word of advice, yes 6 months reserve would help us sleep better at night. 

Hello everyone,

Not sure if this is the introduction page but I just wanted to say how wonderful this community is for information and education that is provided and I wanted to make use of it.

My name is Tien and I am new to real estates, I am still learning but I never knew this was a viable and feasible way to really make money and even retire. I been making the most of my time at work by listening to BP podcast and pretty much anything and everything real estate related, nothing has ever really held my attention like this. 

Me and my wife are starting out and we live in Indianapolis looking to get our first house. The plan is to live in it for a year save money move out and rent the property and rinse and repeat for as long as the bank will let me (I read they will only let you do this for 3 or 4 houses.)

My wife is scared of having 3 or 4 loans so she wants to try to pay the first house all the way off then proceed to purchase the second one thereby collecting most of the rent as profit, me on the other hand I want to put just a minimum % down purchase a property save up money for another down then moving to the next property and renting the previous property out and then doing that 2 or 3 more times until we have 3 houses where the mortgage is paid for by the rent each month with a little bit left over to save. So we are kind of stuck on this at the moment 

But worse yet Indianapolis is like much of the country right now being a hot market, any decent house we see is scooped up within a matter of hours and even minutes. We are looking at two options right now maybe find a house in a bad area of town since it would be cheaper or maybe waiting this out. However I am afraid that it might not cool off for years to come and that buying right now even though it is overpriced would be the best option in the long run. What do you guys think ?

@Annchen Knodt Thank you for the suggestions I have placed those books in my amazon cart. I am currently reading Brandon's book on Rental Property but I will definitely check out First Time Homebuyer and How to Invest In Real Estates.

and thank you for sharing the analysis with me I am looking over it now !

Hello,

There are so many books I want to get the right one. Can someone point me towards one on the site.

I am looking for something geared towards a beginner investor, mainly I’d like to know about the financing side of buying a house how to finance it properly to get a house to live then rent it out with a positive cash flow.
I seen a few books like the Book on rental property investing by Brandon Turner. 
Thank you 

Thank you Dave and Matthew for the advice.

I think a combination of house hacking and paying the monthly payments will get me the capital to invest in the second home. @Dave E. you are right I would not be able to get the equity out just by making those payments in 2 years alone. 

My wife wants to put a big downpayment and make bigger payments than the monthly but that would drain our capital we are better off paying the monthly and saving the rest of the money for a downpayment for the next property right ?