All Forum Posts by: Ty Ash

Hi @Carver Woosley,

I'd recommend that you keep/start learning! This can be done through Podcasts, Books, and Mentors you find by networking.

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 newer investor. Being on a limited budget just means that there may be sacrifices that you need to make in order to start saving for a larger down payment to start investing (3.5% down for FHA). 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 now and in the future, keep your expenses low, and take the difference to invest into assets, real estate/business.

As already mentioned above, 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.

Here's a great resource right here on BP:

https://www.biggerpockets.com/real-estate-investing/house-hacking-strategy

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

Join us for a hybrid, in-person and online event to meet other Milwaukee real estate investors and learn more about the state of the Milwaukee Real Estate Market. For this event we've invited Welcome Home Milwaukee Property Management to speak more about the property management process to teach you how to put effectively manage properties and use their services.

No matter which Real Estate strategy you use, we'd love to see you in person or online to get to know you! All are welcome.

The agenda is as follows:
-Arrive 15 min early to grab a beverage for anyone in person or log on to the google meeting
-Welcome, Topic Introduction
-Introduction to Property Management with Welcome Home Milwaukee with Ed Riggenbach
-Milwaukee Market Update (duplex and multi-family focus) with Ty Ash
-Question & Answer, Open Forum

Location: Expansive, Wauwatosa and Google Meets
RSVP HERE ON BP AND AT THIS LINK:

https://www.houseworksre.com/e...

Google Meeting Room Access:
Video call link: https://meet.google.com/nkm-pe...

Event Information: LINK with all information and click attending on BP!

Time: 7:00-8:30 PM CST, hoping to accommodate all time zones!

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 the Milwaukee area!

Location: Red Lion British Pub on Tannery Row

Time: 6:00-8:00 PM CST

Let us know you're coming: https://www.houseworksre.com/e...

I'm usually a few minutes early grabbing my first beer at the bar find me and let's talk! SEE YOU THERE!

Hi @Jordan Alequin!

Great question and here are my thoughts!

In terms of what you can "afford" your lender is going to be able give you that max purchase price number based on your debt to income and other factors. Just because you get a large pre-approval doesn't always mean that's what you can actually afford or need max yourself out.

However, with the house hack, I believe you should be focused on three thing. Will you be able to make your new purchase work for your personal living situation for at least the next year, will your out of pocket each month be similar or lower than renting a comparable unit in your area, and once you move out how close to breakeven will your investment be?

Not every deal will work which you will learn by running the numbers on dozens of deals. You'll find out what the average, above average, and below average deals look like over time.

Good luck on your search and here for any questions along the way!

Hi @Kollin Ruiz!

Welcome to BP! Excited for you to start your house hacking journey. Some quick tips for you as you get started.

Go through these questions to help you on deciding if a deal makes sense for your situation:

While living in your house hack, can you get to a point where you are paying less out of pocket than typical rent for the area?

Do you have the potential to force some appreciation with some projects (my favorites are carpet, paint, and flooring)?

When you move out, will you be at close to breakeven when accounting for PITI and Expenses (even if you are close, this may make sense if the next question is yes)?

When you look at your BP Calculator for the deal, will you have built equity over 5 years with conservative appreciation assumptions for your market and tenants paying down your principal?

My guess is by putting down the low down payment/closing costs and some money into updates and repairs that you will have a positive impact on your net worth by buying your deal even if the cash flow is close to breakeven. Plus you'll hopefully have lower expenses while you live there that can increase your savings rate for the next deal. You just need to get started and make sure you're operating with reserves so that you can keep the deal for the long term.

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

Hi @Talya Reynolds!

Go through these questions to help you on deciding if a deal makes sense for your situation:

If you're house hacking this property by renting out the rooms, will you be paying less than typical rent for your area while you live there?

Do you have the potential to force some appreciation with some projects (my favorites are carpet, paint, and flooring)?

When you move out, will you be at least breakeven when accounting for PITI and Expenses (even if you are close, this may make sense if the next question is yes)?

When you look at your BP Calculator for the deal, will you have built equity over 5 years with conservative appreciation assumptions for your market and tenants paying down your principal?

Most house hack deals will have a positive impact on your net worth even if the cash flow is close to breakeven. Plus you'll hopefully have lower expenses while you live there that can increase your savings rate for the next deal. You just need to get started and make sure you're operating with reserves so that you can keep the deal for the long term. You're BIGGEST risk is not taking advantage of a 3.5% down payment and instead waiting until later and needing to put 25% down if you're not living in your future investment.

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

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 the Milwaukee area!

Location: Good City Brewing Company, Wauwatosa (Bar Tables near Main Entrance)

Time: 5:30-7:30 PM CST

I'm usually a few minutes early grabbing my first beer at the bar find me and let's talk! SEE YOU THERE!

Nice work, @Tyler Haanen!!

Congrats on the first deal.

Hey Milwaukee Real Estate Investors! Only a couple more days until the Milwaukee Real Estate Investing Meetup and Mastermind where we'll dive into a Hard Money Intro and Market Update. Make sure you're signed up at this link below!

https://www.houseworksre.com/e...

I hope that you all can come either online or in person. It should be a great time and can't wait to catch up or meet you!

Hey everyone! Less than one week until our Milwaukee Real Estate Investing Meetup and Mastermind where we'll dive into an Hard Money Intro and Market Update. I hope that you all can come either online or in person. It should be a great time and can't wait to catch up or meet you!