How to START Your Real Estate Portfolio | House Hacking for Investors

[@Zo_bomaye]

Man, you’re the first real estate guru that’s actually factual. That 3.5% is not real, you’re right. Thanks for what to look out for

[@cameron2093]

One of the best videos I’ve ever seen, straight to the point and went straight to the numbers - I’ve shared this with my friends and family!

[@thejonschwartz]

Thanks so much! I really appreciate the kind feedback!

[@pswizzy4u889]

The chart at the end was incredible.. Thank you!

[@thejonschwartz]

Thanks so much for the feedback!!

[@bloodphantom81]

love the concept. I just bought a house in Merced, and it’s my 2nd on this house hack journey. I’d want my 3rd property to be in LA. but… it takes a lot more patience and work to find properties where the numbers make sense here, especially if putting 10% or less down.

[@thejonschwartz]

The numbers in LA don't make sense if you're just assessing on cashflow. LA is an appreciation market! But here's the pro tip: to achieve cashflow, buy a duplex that allows for one or two ADUs to be built (or converted from existing garage or other structures). Phase one of the investment is just buying the property -- which is expensive enough in LA! Phrase two is building the ADU(s). At that point, you'll have an asset worth a lot more than you put into it with serious cashflow. And if you need any help with that, you know who to call (me!).

[@bloodphantom81]

@@thejonschwartzthanks for the thoughtful reply! we were in contact last year about setting up a chat but I think our schedules didn’t align or something, idk! I’ll email you again :)

[@kamilahdouglas1609]

Great info, and you're handsome

[@thejonschwartz]

Thank you!!!

[@jupiterhaha]

Thank you for breaking this down. You have my follow. Please make more videos like this covering the details with good vs. bad properties and mistakes to avoid. Cheers 🎉

[@thejonschwartz]

You're so welcome! I appreciate the follow!

[@lisbetflores2950]

Am amazed by how he explained this step by step. Very proud (I followed for the time you took to explain this to others)

[@thejonschwartz]

Thanks so much!

[@jonnyboi.gallegos]

this video is insanely great man this info to the right people is gold

[@thejonschwartz]

Thanks so much! I appreciate it!

[@toniceeden1773]

The most honest video watch! I dislike when most other videos for free! It takes money to make money nothing is FREE!!!! Love your video.

[@thejonschwartz]

Thank you! Getting into real estate always has a cost - if not a meaningful amount of money, then a huge amount of time!

[@carlosleshawn]

Thank you for the real breakdown of the costs

[@JonSmith531]

Good analysis and example. You said earlier in the video about buying a place in Indiana and losing money, then you give an example in a high crime area of St Louis Missouri. There are times when the best bet is waiting and letting the market settle out. This is one of those times. Don't buy a duplex near Ferguson MO and expect it to work out. It likely will not.

[@edwin1845]

Is it a bad idea to have a duplex with tenant paying half the mortgage $950 . I live in one half I have to for atleast a year. Should I leave after a year but I still need a place to live I would end up paying that amount elsewhere but I would make more in rental income and barely pay taxes on it? Or should I stay and continute to pay half myself. The unit im in would rent out for 1300 if i moved mortgage is 1850

[@thejonschwartz]

It sounds like the property would cashflow if you moved out. If you found a comparable property to buy and move into, you’d have the same monthly payment plus cashflow from the first property - so you’d be ahead, right?

[@loganmclean6510]

Bro. This video was disgustingly good, well done.

[@thejonschwartz]

Thanks so much! I really appreciate the validation -- truly!

[@KJInvesting]

Facts!!

[@thejonschwartz]

Thank you!!

[@OverfinchJoshua]

Great video Jon! Subscribed 👏 Im going to follow your videos through my first purchase (hopefully duplex)

[@thejonschwartz]

Awesome! Congrats! I'm 100% confident that you have it within your power to make that first purchase a duplex -- I wish my first purchase had been one! In fact, I made a whole video about it: kzbin.info/www/bejne/eKGsd4J7idqgY8Usi=N_QXUZ_7ttvF0Wo7

[@OverfinchJoshua]

@@thejonschwartz thank you Jon - a piece of information you said in the video was very insightful about make sure it’d somewhere you want to live yourself, I’ve nearly panic bought a place because I am desperate to have a duplex 😂 but I didn’t want to live in it myself at that standard so it might take a little longer to find the right one but I am ready and eager to get started 🔥🤞

[@loveyourself-cq5cu]

THIS THE BEST DAMN VIDEO ON KZbin!! 🙏🏾 THANK YOU

[@iJmag]

Jon the reason im here is so i can learn how to quit my job!!

[@thejonschwartz]

Awesome! My #1 piece of advice: don't be in a rush. Understand that building wealth through real estate takes time. It's more of a "get rich slow" program.

[@SmokieTRW]

Do you have this in VA edition

[@thejonschwartz]

I don't, I'm sorry!

[@hunnithearts8256]

Hi, yea, um may i like this twice? Best vid .

[@thejonschwartz]

Thank you! I don't know if you can like it twice, but you can certainly send friends to like it!

[@nikeshdubey4129]

Really very helpful. I'm starting this journey now. I'm from India. Here a 3BHK Duplex costs easily 7 million Rs. And EMI monthly payment will be 75000 rs if loan is taken up for 15 years. I don't think the property can earn rent of 75000 . So I'm thinking to maybe 1BHK would be better which cost around 3 million and can earn rent of 20000 rs. Your thoughts please

[@nikeshdubey4129]

Subscribed

[@thejonschwartz]

I don’t know anything about the Indian real estate market or economy, I’m sorry!

[@SucceedREI]

Hey Jon. Great video. Agree with everything you said. Except I have one question: do you know any investors that have successfully completed the serial house hack strategy? Did you do this more than once or any of your clients? I purchased my first duplex in 2011 as a house hack and after that scaled through non-owner occupied financing and private money. But, I’d like to get to the bottom of whether banks will finance someone (like in the example you gave) buying a similar size property several years in a row. I’ve interviewed some folks in the mortgage industry on my KZbin channel and they’ve told me that underwriting on the 2nd loan will want the borrower to not only meet all the minimum typical criteria but also show that the move from their first property to the next one is an “improvement in their lifestyle.” Meaning that if someone was living and renting a small 2 family like the one in the example, the next one would either need to be a bigger, nicer two family or a single family. And, by the same token, going to a 3 or a 4 unit is completely out of the question, because the bank would consider that a downgrade. But, I’ve also read comments on Biggerpockets from people saying that it depends on the lender and that, while Fannie Mae underwriting may run into this issue, investors can find local banks which keep their mortgages on their balance sheets to finance that 2nd and 3rd house hack without the need to prove that it’s a lifestyle upgrade. Would love to hear from you as a fellow investor and real estate agent as to whether you know anyone who has actually been able to get financing multiple times for similar multi family properties using non-owner occupied loans.

[@thejonschwartz]

Thank you! I think you're totally right about the feasibility of successive residential loans.

[@orisifinau5461]

i know this is 1 year ago, but I'm interested in real estate and know nothing about business or experience in this field but why not buy a triplex or quadplex so they are more tenants, more tenant more money right????

[@thejonschwartz]

Yup! But triplexes and quadplexes also cost more money to buy and maintain, so you have to balance the income against the higher mortgage and expenses. That said, if you have the down payment to buy a 3- or 4-unit, go for it!

[@hern-44]

Is there a calculator for house hacking a SFH?

[@thejonschwartz]

Same calculator! Just consider each unit as a bedroom in the house. Utility costs per unit will be much lower.

[@_WTHO]

🎉🔥 conveying my exact message💪🏽🤯

[@alexisportilla708]

Now give an example in california. Specifically in Socal or Norcal please.

[@thejonschwartz]

Sure! What kind of down payment are you able to make?

[@Olvera_emi]

Would it work with an fha loan. 50k or less

[@npunz1]

Great video. Thanks. Can you house hack in different markets with fha loan or does it have to be local. My lender says it has to be within a certain radius of my job.

[@thejonschwartz]

Well, FHA loans are only for owner-occupants. If you’re buying a house in another market with an FHA loan, you have to convince the lender that you’re moving there and will occupy the home.

[@marktran2657]

where are you based out of brother?

[@thejonschwartz]

SoCal!

[@richarddomeshi]

Can you house hack new construction you build with a construction loan?

[@thejonschwartz]

Yes! Construction loans are not permanent financing. A construction loan is usually due in a year or two. When the construction’s done, you refinance into a traditional 30-year mortgage. That’s when you can take a low-rate owner-occupant loan as a house hacker!

[@richarddomeshi]

@@thejonschwartz Thank you. I am an Architectural Designer and I have been thinking about this “Architect/Developer Model” (career) all through Grad school and into my career. I have been trying to get a start, and I think I like this method. I signed up for your duplex calculator but with it being new construction I don’t know if that would work. Is there any way we could connect and I could get more insight. I am willing to join a group and soak up all this knowledge. Please let me know. -peace and blessings

[@naturalhonor9818]

Can't you only have 1 FHA loan at a time?

[@thejonschwartz]

I believe you can move into a new primary residence and take out a new FHA loan after a year of occupancy.

[@viktorivakhno2244]

You need to pay off 25% equity of your current active FHA to be able to qualify for a new one

[@viktorivakhno2244]

Nice story, but not from reality 😂 You need to pay off 25% of your current fha to be able to get a new one

[@EDTlives]

Do you offer any personal tutorials

[@thejonschwartz]

I don't... but if you're in LA, I can work with you!

[@EDTlives]

Hi is it possible to message you when i get in the passion to buy another house. I have to sell my second house due to a failed relationship. But i want to save up and get into this. It would be very beneficial.

[@thejonschwartz]

Awesome! Join my mailing list so we can keep in touch: www.househack.la