All Forum Posts by: Ty Ash

Come join us for an informal gathering to meet other current and future real estate investors. 

No matter which Real Estate Strategy you use, we'd love to see you out to get to know you! All are welcome

No agenda, no topic, just come hang out with some people from the real estate investing community here in Milwaukee!

Hi @Jorge Pla!

I totally agree with @Nathan Gesner. The "LLC Question" keeps a lot of new investors from getting started and taking action on their first deal.

Being young and ready to delay your gratification, I definitely recommend that you start with a house hack using FHA 3.5% down or the 5% down conventional if you qualify. Try to do a few of these in the next few years, work hard to increase your income, keep your expenses low, and let the compounding effects of owning real estate at a young age do their thing. Eventually you'll be able to leverage this equity to grow your portfolio down the road, but first you need to do one deal.

Side note, having started with a house hack myself, I wish that I had spent more time learning about personal finance as I got started as I was leaving a lot of meat on the bone because I had my blinders on and was only focused on Real Estate. Go check out the BP Money podcast and continue to round out your education and the levers you need to understand to get to financial independence.

Best of luck and hope to hear back soon on your first deal!

 @Steven Foster Wilson, I totally agree! Many push out the option to enjoy what they do every day to retirement, even if it is early. I believe we should all be working every day to create our perfect day whether it's on the weekends or the weekdays while on our journey to FI. I think the FI part of FIRE is the important thing to focus in on. The person who has the will power to achieve FIRE will probably end up miserable if they actually retired and had nothing to strive towards each day!

Hi @Charles Cathey!

Sounds like this is a great opportunity without actually having the numbers in front of us. I think a single family home purchase is still a good choice today even with rates rising (yet still affordable historically speaking). Especially if you're able to check off at least a couple of these boxes:

1) You're buying it under market value (look at sold listings in the last 3 months nearby for similar finishes, beds, baths, lot size)

2) It fits your current needs for a home

3) It has some "meat on the bone". Whether it's carpet, paint, flooring, landscaping/curb appeal having some ability to force appreciation is a good position to be in. (If 1 and 3 apply, you might have a good live in flip on your hands, read up on this strategy more)

4) You could rent it out and be breakeven or cash flow post move out (use the BP Calculators). You'll be able to use a low % down option to increase your ROI / Cash on Cash.

5) You could see yourself living there for 5-10 years. This gives you time to wait out market corrections and consider the other options above.

All in all, the more options available to you, the better postion you'll be in. There's a good chance that you will build equity over the next couple of years by buying a primary residence that could unlock buying power to you in the form of a HELOC.

Best of luck!

Hi @Alejandro Escalante!

I'd recommend that you keep/start learning! Podcasts, Books, and Mentors you find by networking. You're at a good age to work for someone else and start earning an income while learning from their business and experience in a field of your choice.

I'd pick up a copy of Set for Life by Scott Trench as it has a good framework for financial independence, especially for a younger investor. Real Estate is just a part of your total financial picture so don't become too focused on just real estate. You'll want to learn more ways to increase your income in the future, keep your expenses low now, and take the difference to invest into assets, real estate/business.

A house hack will probably be one of the best strategies for you to get started and take action while giving you a great return because of the low % down needed to get started. Once you get to this point make sure to run your numbers for both while living in the house hack (lowering your living expense to less than what it would be to rent in your area) and post move out where you need to be at least break even after accounting for your monthly payment + maintenance, capex, vacancy, property management.

Best of luck getting started! Here for you with any questions you have along the way!

Hi @Donta Williams!

Curious if these properties are cash flowing only because you are self managing today? If the numbers aren't going to work with Capex, Maintenance, Vacancy, and Management once you relocate, then now is probably a good time to sell and cash in. As other's have mentioned, it might be worth trying to execute a 1031 in order to roll the proceeds into new investments in your new location and defer those capital gains.

Best of luck!

Hi @Mark Ray!

Start learning! Podcasts, Books, and Mentors you find by networking. You're newly out of college but being a life long learner will help you grow both personally and professionally.

I'd pick up a copy of Set for Life by Scott Trench as it has a good framework for financial independence, especially for a younger investor. Real Estate is just a part of your total financial picture so don't become too focused on just real estate.

A house hack will probably be one of the best strategies for you to get started and take action while giving you a great return because of the low % down needed to get started. Make sure to run your numbers for both while living in the house hack (lowering your living expense to less than what it would be to rent in your area) and post move out where you need to be at least break even after accounting for your monthly payment + maintenance, capex, vacancy, property management.

Best of luck getting started! Here for you with any questions you have along the way!

Hi @Tommy Barrow!

Congrats on the first deal! I won't answer the LLC question directly but definitely look into getting yourself an Umbrella Policy from the same provider as your home insurance company. It's not too expensive and adds some additional liability coverage!

I've had a good amount of success listing on Zillow and Apartments.com as well. I created a "Tenant Acceptance Criteria" one pager that I send to anyone that reaches out to filter through any tire kickers. Also, make sure to call those work references and past two landlords when screening your candidates! Make your criteria the bad guys and stick to your rules.

Good luck! Don't hesitate to reach out!

 Agreed!

Got it! If it's a single family residence that you're buying as an investment, you should be able to find a 25% down conventional product at a variety of different lenders. There are many other strategies you could use as well but that's the most standard of them all.

Good luck and reach out any time!