All Forum Posts by: Zachary Kucharek

@Suny Capezzuto

Suny, thanks for your reply... Yes I'd say you are making very great progress. Progress is progress, but you are firing on all fronts I envy that. Keep up the good work.

It is awesome to get a view into someone that has a similar path to where I am currently looking. I have a little later of a start due to having graduate school, starting work later. I can definitely pay my student loans while still investing 15% into ROTH 401k which my current minimum is quite high, due to my refi amount to lower the interest the most.

I am planning to soon start consolidating some of my non tax advantaged investment accounts toward my down payment and place that in an online high yield savings account. And then starting to allocate more funds each month to this down-payment after I get my parent plus loans paid off in near future.

What are some tips you have for picking out a house hack in my situation. I'd love to hear about what worked well and what didn't!

Thanks again.

@Anthoney Hanks thanks for your insight Anthony. I have read a few of your comments on other topics I have been reading on the forum, so you must be quite active! Would love to connect and learn more.

I have not yet heard of the FHA 203 loan option. That is very interesting, even if there were some minor updates to make this would greatly decrease the amount of initial payment, as long as after I added this to the loan the numbers on the deal still made sense!

Thanks again.

@Jonathan Postema well it sounds like you have a plan laid out. And just from reading that, it also sounds like the next step is seeing what rents go for in the area so look into that as soon as you can to find out if that is a feasible possibility to cover the mortgage monthly payment you posted. Then you can start moving on that, while looking into your next step of a SFH or MFH for you and significant other!

Hey @Jonathan Postema, I am also new to REI and I am saving slowly for my first downpayment while also dealing with trying to attack student loans head on. I am currently in Mid Michigan, but have lived for a couple years post grad in Royal Oak, MI. Metro Detroit is a lot of fun and there are a ton of properties down that way so you are in a good spot as I'm sure you know with a lot of opportunity!

I second @Edgar Butler and his response about looking at possible house hacks if that is within your comfort zone, as it will ease you into the investing world while also reducing your living expenses (most peoples largest expense) so that you can use that extra money from paying less for living toward investing more in future REI, reserves in case something goes wrong with property, or building your retirement account. This is something I am looking into and want to get a MFH with 2-4 units in the future when I save up a large enough downpayment. Look up some episodes on BiggerPockets about House hacking.

Best of luck with everything Both of you guys!

@Jaron Walling 

Yeah! That would be fun i'm sure to have him freak out about ever taking out debt to go to college. Which I lived at home and worked during school and still came out with this much. Is just a consequence to going into a medical field requiring a doctorate at this point. However, I listen to his show and have read the books so I know that would be a very entertaining phone call for the listeners and not me. Haha, which is why I came to people here with questions, I certainly know Dave's Opionion. But Daves opinion is not for every person and situation... or everyone on this page would pay all cash for each and every investment.

@Erik W. Hey Erik, Thank you so much for your thoughts! I love the devils advocate position giving me some things I definitely may not have thought of, I appreciate that.

I definitely wouldn't call myself a "reluctant land lord" as it is something I am quite serious about as part of my future! I know that is not how you are framing it, as I am asking if it makes sense and come with quite the student debt thanks to my career path! 

I am trying to find the best way to enter the Real Estate Investing realm in my current situation, I am saving for a down payment and this feels to me currently like one of my best approaches. I really liked you advice about renting and having others cover my rental (like a rent based house hack) I have never thought of that or known it was an option. I plan to continue to pay the 2k per month at my student loans and save any extra I can toward a future down payment.

I have lived through several Roommates throughout different college experiences in dorms, apartments, and houses (However I certainly didn't know about real estate investing or house/rent hacking at that point) so I know I can definitely live with extra people and I was always the head of the lease and took the lead on all the issues as far as a renter needs to that is. 

I the meantime I am working hard to build up a down payment while I continue to gain knowledge, decrease student loan debt, get an agent to search the MLS in my specifications and learn how to properly evaluate property.

@Jaysen Medhurst Thanks for your input, definitely had some stuff in there that I heard for the first time. I Really liked the point about FHA from a local lender, that may have a loan product that has the same FHA low down payment and has auto PMI drop at 20% Equity. I have heard people dispute the FHA Due to the low down payment (for reasons such as PMI and more ability to be underwater on a prop if market drops). What are your thoughts on the FHA loan? From my untrained eye, it definitely improves the ease of entry and return based on initial investment for my position currently.

@Brad Bellstedt Thank you for the response, a lot of food for thought in there!! I would plan on staying there obviously for at least a year as the FHA requires that, then depending on my finances, experience, further knowledge gained, and market I may look into doing another House hack and renting the unit I lived in for that year. And yes the amount down will depend on if I go for a duplex or a tri/quad and the correlating purchase price and what I have saved at that time.

You make a really good point on the mortgage price and interest paid on all that is not equity, I have never looked at it through that exact lens, I like it. And as far as getting a SFH and renting out rooms, I am totally in for that... however the girlfriend I don't think would be as keen on the idea haha! Therefore my current target is du/tri/quadplex, If I can find anything that is!

I suppose am going to keep plugging away at the student loans at that rate of 4.00% which I have worked hard to get it down to, and start to save slowly for the down payment. I have a market picked out and will have to get a good realtor that understands the house hack MFH approach and have them start combing the MLS. Because I have to believe, if I don't make a bad deal purchase that I could get more than 4.00% return on the investment while also reducing living costs if not eliminating them based on the deal.

Thanks so much Brad for your input. I love to learn.

Hello All,

I have been plugging away at a large sum of student debt over 100k after attending Physical Therapy School for my Doctorate. I am working full time and paying over 2k a month to my student loans and have refinanced multiple times down to a 4.00% interest rate. I am really fired up about finances and want to get my student debt reduced as fast as possible. That being said I am even more intrigued by bigger pockets, and I want to start doing a house hacking strategy, to get me into real estate investing at the same time as reducing my living costs for rent with the proper deal. I am not yet looking for a house hack as I have been paying aggressively toward the student loan balance. I am wondering if it is a smart decision with this much student loans to begin investing in this manner. I also have a 6-8months of expenses emergency fund in a high yield savings account already. 

Will the bank even finance me for a mortgage for a house hacking property with this much student loan debt?

Is an FHA loan a good route to go? is it true can you refinance out of the PMI after 20% equity is reached? Because this would be a nice route if that is the case as I would not have to save as large of a down payment while also trying to attack my student debt. ( I have heard a lot about it being great on bigger pockets, but then also some haters of the FHA due to you starting out with such low equity. Yet I am looking for a long-term hold property that cash flows so from what I know that should not be as large of a concern?)

Thank you so much everyone!! 

I know that was a lot, would be happy with any feedback!

Zac

Hello All,

I have been plugging away at a large sum of student debt over 100k after attending Physical Therapy School for my Doctorate. I am working full time and paying over 2k a month to my student loans and have refinanced multiple times down to a 4.00% interest rate. I am really fired up about finances and want to get my student debt reduced as fast as possible. That being said I am even more intrigued by bigger pockets, and I want to start doing a house hacking strategy, to get me into real estate investing at the same time as reducing my living costs for rent with the proper deal. I am not yet looking for a house hack as I have been paying aggressively toward the student loan balance. I am wondering if it is a smart decision with this much student loans to begin investing in this manner. I also have a 6-8months of expenses emergency fund in a high yield savings account already. 

Will the bank even finance me for a mortgage for a house hacking property with this much student loan debt?

Is an FHA loan a good route to go? is it true can you refinance out of the PMI after 20% equity is reached? Because this would be a nice route if that is the case as I would not have to save as large of a down payment while also trying to attack my student debt. ( I have heard a lot about it being great on bigger pockets, but then also some haters of the FHA due to you starting out with such low equity. Yet I am looking for a long-term hold property that cash flows so from what I know that should not be as large of a concern?)

Thank you so much everyone!! 

I know that was a lot, would be happy with any feedback!

Zac