All Forum Posts by: Zach Adams

@Keith N.

Congratulations! I don't know your market, but since this is owner occupied it doesn't have to be a great deal.  I approach house hacking as hybrid investor/homeowner.  Sure the numbers need to work, but since I'm going to be living there, I can let some things slide.

I'm in escrow on a duplex here San Diego County. The numbers are different and not as good as yours, but I'm excited to get in my property as well. What's your PMI? With new FHA guidelines, the PMI doesn't go away when the loan is 20% paid. It sticks around for the life of the loan :( I'm getting in at 3.5% down and will be saving up to put down the remainder to get to 20% and refi to get a conventional. I hope the rates don't go bonkers in the next couple of years. At this point, my cashflow when I move out will be substantially more. Plus I have a pretty strong chance of appreciation here in SoCal.

Great work and I also like that you're taking a roomate on your side to maximize your cashflow.  I've been thinking about doing the same thing.  Is it someone you know or a new renter?

Great work -

Zach

Alison Lewis sorry you're going through tough times. Without knowing more, I'd do everything I could to hang on to that property. How about a cash out refi since you own it free and clear? Take about $40-50k to get back on your feet. Also what about temporarily relocating to a less expensive area in the Bay? Richmond , Oakland, east bay? Good luck and best wishes

So earlier this year, my PM was approached by a film crew in Atlanta to use my house in an upcoming film.  The house pretty neat - 1950's ranch.  I lived there for years and did a good job updating it.  Anyways, the house was off-market for a month, middle of winter, so I went for it.  Charged them 2 Months rent for 1 month use and a double deposit.  After paying my PM and using the hefty deposit to fix all the things the set crew broke (tons of little things), I made up for my lost month vacancy and came out ahead.  The movie is 90 Minutes in Heaven and my house was used for the protagonist's home.  It doesn't look like a very good movie but Hayden Christensen and Kate Bosworth are in it!  

Don't think my house will be as famous as the Breaking Bad Pizza house though...

Random!

Originally posted by @Jimmy Humphrey:

For everybody might I suggest reading the book "The Millionaire Next Door". The average millionaire is debt free and averages $90k a year in income without being leveraged.  

 I liked that book, although I think it was more a disposition on what the wealthy really looks like in the US.  The author also spent a lot time discussing their families and the confusion their children have about wealth.  

From my recollection, the examples were mostly good wage earners that saved a high percentage (frugality stressed) of their pay and slowly and steadily invested in equities over the course of their lives, maintaining the same standard of living over the course of their lives.

I enjoyed the book and learned a lot about how the wealthy plan their estates and allocate their wealth, but it was not a good "how to" book for financial independence prior to 65.  I don't think RE was mentioned at all...

Zach 

Originally posted by @Elizabeth Colegrove:

I have 1.3 million of debt for $2,000 and am a happy little clam :)

Just Saying!!

I think everyone has their own style and business model. The key is to stay true to your business model/plan and not get caught up with getting rich fast. 

We make between $180-$450 per rental. We intentionally buy higher end homes that appeal to professionals. These are newer homes, at 100% to 75% finance in great up and coming areas.

 Love it Elizabeth!  I have a similar strategy myself.

thanks!

Originally posted by @Jimmy Humphrey:

Thanks for the insights. It really looks like it's not as dangerous as I thought so long as you really look hard for a great deal. 

I picked the $100-200 a month figure from the guy on the Podcast who says that's what he looks to cash flow per door.  Honestly, I don't think I would feel safe doing anything less than $400 a month. At that point it seems better to just invest in the stock market and using something like ticker symbol O which pays a 5.3%+ dividend.

 You seem to really the ticker "O"....

In addition to what Alfred said, I don't think you'd want to share living space with a tenant in a <$135k house in Victorville.

Originally posted by @Bruce May:

Congrats @Zach Adams. Is it the one in Vista?

 Yes. Meant to txt you. Thanks again for walking the other property the other day. I appreciate the input and good information! Talk soon 

Zach

Originally posted by @George P.:

you wont qualify for anything cheaper than the big 3 you listed.

i'd love to know too, but i just paid for 900 sq. ft of 3/4 hardwood 2.89/sq.ft at home depot - pre finished.

i'll never install anything but pre finished, so quick and looks awesome.

 George - is $2.89/sq ft your material cost or installed cost by contractor?  

Originally posted by @Azeez K.:

@Zach Adams

Patience pays big in this game! Congratulations and much success. What sort of rents are you getting in your market? 

Good luck! Post some pictures and #'s once you move in to your new place. 

 I'm expecting $1400-1500/mon. Lots of stuff in the area seems to be in this range. Current tenant that will stay for at least 2 mon is at $1270 which is under market.