Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Xavien Rafael

Xavien Rafael has started 4 posts and replied 9 times.

Post: Best market to house hack in?

Xavien RafaelPosted
  • Financial Advisor
  • Posts 14
  • Votes 11
Quote from @Kegan Scholl:

-22 years old

-$50,000 pre tax income from business this year

-80k in savings

-30k in investments

-pre approved for $350,000 (had to use parents as co-signers because I started business 2 years ago and didn’t make much first year)

Looking to get into first house by house hacking a 4 bed 2 bath renting out 3 rooms. Preferably stay for one year and find another house. Ideally want to break even or cash flow with the 3 tenants.

Now question is this: I was wanting to buy in Tampa, FL. I’m told taxes and insurance is lot and will rise each year and cash flow is hard to come by. So is there better markets to buy in (in big cities)? Or can I find something in Tampa? I’ve been interested in TX, AZ, UT, NC or anywhere in FL.

Also any advice for me is appreciated (save up more, focus on business instead, etc)

Any more info you need comment below! Thanks for advice.

High-demand short-term rental markets like Orlando, FL, Phoenix, AZ, and Nashville, TN are great for house hacking because you can leverage the high occupancy rates for STRs to offset your mortgage. From a credit perspective, house hacking also helps you build strong cash flow, which can make it easier to secure financing for future deals.

Additionally, if you're targeting high-appreciation markets, you could also look into cash-out refinancing down the line to pull equity and fund additional investments. Just be cautious of DTI (debt-to-income) ratios when qualifying for additional loans if you're relying on projected STR income—most lenders require at least 12 months of rental history. What's your credit strategy when scaling through house hacking?

House hacking isn't just about the market—it's about your lifestyle goals and risk tolerance. For some, a smaller market with lower property costs may provide greater financial flexibility, while others might prioritize high-demand cities for quicker tenant turnover. How do you balance these considerations when choosing a location?

Chris, it all really comes down to giving your money a clear purpose. Many new investors don’t have accountants, and for those without one, separating accounts can be a simple way to stay disciplined with cash flow.

In my opinion, if money is constantly going in and out of just one account without categorization or oversight, it’s easy for things to spiral and hurt your business. That said, I think it’s impressive that you’re able to manage this with fewer accounts—hats off to you for making it work efficiently.

For me, having accounts like income, operating expenses, marketing, and taxes gives each dollar a specific job. An income account tracks revenue, while an operating expense account keeps daily costs organized. A tax account ensures nothing is accidentally spent elsewhere, and a marketing account makes sure lead generation is always prioritized.

From a credit perspective, connecting credit cards to these accounts on autopay helps you manage spending responsibly while playing the credit game. This can lead to consistent limit increases every quarter, which opens up even more opportunities for growth.

Having good rapport or a strong relationship with a credible accountant to help simplify and oversee this process is an amazing idea and highly recommended. Thanks for sharing your thoughts!

Quote from @Joe S.:
Quote from @Xavien Rafael:
Quote from @Jennifer Fernéz:

Let's say you are a brand new investor. You are 40 years old and you have a family. You have $80K in your savings account, and you decide you want to invest in real estate.

Knowing what you know now, what would you do with your 80K? How would you make it grow the quickest?

If you think of your $80K like a game of chess, your money is your king—it’s valuable and needs to be protected. You don’t win by moving your king around recklessly. Instead, you leverage your queen: your credit. The queen is your most powerful piece, but it needs to be used wisely to win the game.

Here’s how to play the game:

1. Protect Your Cash: Instead of using your hard-earned $80K for large investments outright, leverage it strategically. Open a corporation and start building business credit.

2. Leverage Credit to Multiply Capital: With strong business credit, you can secure $50K to $250K in funding through business credit cards and lines of credit. The best part? Business credit doesn’t affect your personal credit score dramatically, and you’ll have significantly more capital to work with.

3. Use Portfolio Lenders: Portfolio lenders often require just a 20% down payment and will provide the remaining 80% for your property investment. With credit and cash combined, you can scale your investments much faster.

4. Invest Strategically: Use a small portion of your credit to invest in marketing to find deals, or partner with wholesalers and real estate agents to bring deals to you.

5. Organize for Success: Set up multiple business bank accounts and give your money a purpose. This organization will help you manage cash flow, plan investments, and operate like a true CEO.

6. Build Your Network: Real estate success is a team sport. Partner with investors, wholesalers, and real estate agents who align with your vision and values. Identifying the right people will set you up for long-term wins.

Remember, credit is a tool—it’s not about getting rich quick but about building wealth responsibly. This approach will allow you to grow beyond your $80K and truly make strategic moves in the game of real estate.


 If you were referring to credit cards stacking, that’s not a new option that needs a bunch of special maneuvering. Please share more information about exactly what it is you’re talking about. 


On the contrary, it’s crucial to protect yourself when stacking personal or business credit cards.

I like to break down credit with an analogy to prioritize cash and showcase how leveraging credit can help you maneuver into real estate with less risk. Credit, much like the queen in chess, offers tremendous leverage—but using it recklessly and without strategy can be detrimental.

That’s why networking and carefully vetting opportunities are key. They allow you to turn credit into wealth while continuing to build and preserve large cash reserves.

If your investments never touch your cash, then I’d say you’re doing an amazing job.

What do you think? I’m curious to hear your thoughts.

If you’re a real estate investor looking to scale quickly, portfolio lenders can be an incredible resource. Unlike traditional banks, which focus heavily on personal credit and income, portfolio lenders prioritize the cash flow of your property. This makes them ideal for investors with growing portfolios or those looking to take on larger projects.

Portfolio lenders often offer more flexibility with their terms, allowing for creative deal structures and quicker closings. They’re especially useful for multifamily properties or when you’re working on multiple acquisitions at once. However, understanding their requirements—such as down payment percentages, reserve requirements, and loan-to-value ratios—is key to getting approved.

One of the biggest advantages of working with portfolio lenders is their ability to fund deals that traditional banks might pass on. This gives investors more opportunities to acquire undervalued or unconventional properties.

For those who’ve worked with portfolio lenders, what has your experience been like? And for anyone considering them, what questions do you have about the process? Let’s discuss how this strategy can help investors grow smarter and faster

Managing money might not seem as exciting as closing deals, but it’s one of the most crucial aspects of running a successful real estate business. Properly structuring your bank accounts ensures that every dollar in your business has a purpose. This isn’t just about bookkeeping—it’s about setting yourself up for sustainable growth.

Many investors use a basic system with at least five accounts: one for income, one for operating expenses, one for taxes, one for marketing, and one for reserves. This setup helps you stay organized, prepared for tax season, and ready for unexpected expenses. Plus, having a dedicated account for marketing ensures you always have funds to invest in finding your next deal.

For those looking to scale their portfolios, this structure becomes even more important. With larger projects come bigger budgets, and tracking your cash flow becomes essential for profitability. It also positions you to work more effectively with lenders and partners who want to see a professional financial setup.

How are others here organizing their finances? I’d love to hear about the systems you’ve put in place to stay on top of your business.

Many real estate investors don’t realize how much they can benefit from separating personal and business credit. Business credit not only shields your personal credit score but also unlocks larger funding opportunities. This separation allows you to manage risks more effectively, ensuring your personal credit isn’t impacted by the ups and downs of your real estate ventures.

Building business credit is more straightforward than most people think. Start by setting up a proper business structure—an LLC or S-Corp—and obtaining an EIN. From there, open vendor accounts with companies like Uline or Quill to establish your payment history. Over time, you can move to business credit cards and lines of credit that provide access to $50K–$250K or more.

The best part? Business credit utilization doesn’t affect your personal score, giving you flexibility to grow. Many investors use this credit for down payments, marketing, or renovations, scaling their operations faster than relying on personal savings alone.

For those who have built business credit, how has it impacted your real estate growth? And for anyone just starting out, are there challenges you’re running into? Let’s share strategies to help everyone here maximize this underutilized tool.

When it comes to structuring your real estate business, choosing between an LLC and an S-Corp can feel like a big decision—and for good reason. The entity you select can impact everything from how you're taxed to how you protect your personal assets.

LLCs are often the go-to for real estate investors because of their simplicity and flexibility. They provide strong asset protection, separating your personal finances from your business. This is especially important when owning rental properties or managing flips because it minimizes your personal liability.

However, many people stop at forming an LLC without considering the potential tax benefits of electing S-Corp status. For those managing active income streams—like wholesaling, flipping, or even running a real estate business—filing as an S-Corp can significantly reduce self-employment taxes. This could free up more cash flow to reinvest in your deals.

But here’s where it gets interesting: making the transition to an S-Corp can require a more organized financial structure, which includes separating your accounts, keeping clean records, and being prepared to pay yourself a reasonable salary as the business owner. If you're not careful, the administrative requirements can trip you up—but when done right, the savings can be well worth the effort.

For those of us scaling our portfolios or actively managing real estate deals, the conversation about structure isn’t just theoretical—it directly impacts how we protect our wealth and position ourselves for long-term growth.

What I’ve found is that many investors don’t realize how critical their personal credit is in setting up these entities successfully and accessing the funding they need to operate and grow. Without solid credit, even the best structure can be challenging to leverage.

Curious to hear how others in this community are structuring their businesses—are you sticking with an LLC, making the jump to an S-Corp, or considering something else entirely?

Let’s share knowledge and grow together. The real estate game is all about relationships and strategies, and this is one of the most important topics to get right early on!

Quote from @Jennifer Fernéz:

Let's say you are a brand new investor. You are 40 years old and you have a family. You have $80K in your savings account, and you decide you want to invest in real estate.

Knowing what you know now, what would you do with your 80K? How would you make it grow the quickest?

If you think of your $80K like a game of chess, your money is your king—it’s valuable and needs to be protected. You don’t win by moving your king around recklessly. Instead, you leverage your queen: your credit. The queen is your most powerful piece, but it needs to be used wisely to win the game.

Here’s how to play the game:

1. Protect Your Cash: Instead of using your hard-earned $80K for large investments outright, leverage it strategically. Open a corporation and start building business credit.

2. Leverage Credit to Multiply Capital: With strong business credit, you can secure $50K to $250K in funding through business credit cards and lines of credit. The best part? Business credit doesn’t affect your personal credit score dramatically, and you’ll have significantly more capital to work with.

3. Use Portfolio Lenders: Portfolio lenders often require just a 20% down payment and will provide the remaining 80% for your property investment. With credit and cash combined, you can scale your investments much faster.

4. Invest Strategically: Use a small portion of your credit to invest in marketing to find deals, or partner with wholesalers and real estate agents to bring deals to you.

5. Organize for Success: Set up multiple business bank accounts and give your money a purpose. This organization will help you manage cash flow, plan investments, and operate like a true CEO.

6. Build Your Network: Real estate success is a team sport. Partner with investors, wholesalers, and real estate agents who align with your vision and values. Identifying the right people will set you up for long-term wins.

Remember, credit is a tool—it’s not about getting rich quick but about building wealth responsibly. This approach will allow you to grow beyond your $80K and truly make strategic moves in the game of real estate.


Quote from @Tina Austin:

This information you provided here is most helpful. Where are you located and how can I reach you? Thank you! for sharing. 

Tina Austin

They deleted my post on the credit strategies to protect your cash in situations like this.. I’ll be sure to post it again on this post. I’ve sent you a connect and feel free to ask for any more details on it.