Excellent video! I got my first house in Marina del Rey in 1999 for 345k with a guest cottage! It's now worth 1.8 mil. It's painful to see the current value. I never should've sold that house!
been there done that brother started like you and now building a 78 unit apartment building in el sereno as owner builder-architect- contractor now its all about being creative and making a way so you can make the project to happen
This video is exactly wanted I wanted this week. I am in the middle of house hacking a duplex. Once we move out we’re going to turn the side where we currently live into a MTR. Just taking it one step at a time doing what we can do to get ahead!
Can you do a video on your decision to keep this as an MTR vs a STR or LTR? Wondering how much more upside you get as a MTR and if the extra headache is worth it compared to a LTR
So true man. All my purchases have been scary but they usually work out cause u make it work. I have figured out a way to make money off every home I’ve owned due to Airbnb or small business. You can make it work if put the wrench time in.
Thanks for the share. Sounds like you did your research and bought in developing areas. Location is key. Then, anything you sit on for while will appreciate
Mid-term rental (more than 30 days) then local tenant rights kick in such as can opt to stay after lease ends, etc. Is this an issue for mid-term rental in LA? Thanks
This is a great video. A lot of people don’t understand the ability of how to take out a home equity loan to invest in assets. This is great information. Thanks again.
Watching videos like this kind of sucks when you are just getting started. My wife and I (30 and 28) have a $260k HHI and can't seem to afford anything half decent here in LA. STR is also a lot more difficult to pull off in LA these days. Just feels hopeless in terms of ever becoming a homeowner.
My dude. When I got started in real estate (Kansas City) my HHI was $40-50k. We had $80,000 in student loan and credit card debt. When we moved to LA our HHI was $140,000. (And still had the debt). I'm not saying it's easy for you to buy a house in LA. But at the same time, your definition of "half decent" is probably pretty different than mine. With $260,000 (if you have no debt), I guarantee there are things you can buy. By the way, my wife and I were making offers in Inglewood and Crenshaw. So we were really down for anything at that time. And then we did buy a home in a decent neighborhood. But we sacrificed a lot of comfort to make it work (like having a roommate for 1.5 years and also living in a home without a kitchen for weeks at a time). I feel for you. But I'd also like to point out that $260,000 is not a bad place to be. The things I would have done for that when I moved here are...not something that I'm about to sit here and write out lol. Good luck to you on your endeavors. I hope this channel can somehow help you on your journey.
@@Robuilt Hey dude! I admittedly was not expecting a response and was just shouting into the void that is UA-cam comments lol. I am by no means trying to complain. We have a combined $10k of debt (which is just my own student loans) and about $130k in savings (most of which is locked up in 401k/IRA). I'm incredibly fortunate to be in the financial situation we are in right now. I grew up in a single-parent household that was constantly strapped for cash so it's nice to not worry. You're right that my definition of "half decent" probably differs from yours. My definition comes from the comparison of what my current rent would get me as a mortgage. We pay $3200/m in SFV for a top floor apartment in a 2020 build. We couldn't even get a comparable property for anything less than $900k, which, even with a 20% down payment, is still out of our budget. I really thought a six-figure income was some major benchmark when I was younger, but it just doesn't quite go as far these days. Not only has inflation taken its toll, but housing prices in LA are just pretty insane right now. In your own video you talk about your ~$624k that has nearly doubled in price. Your $140k HHI was essentially equal to $280k HHI in today's LA housing market. Also, interest rates are even higher now. So while $260k is decent money, it is actually less than what you came here with initially. If you were really extending yourself to buy the $624k property then, imagine trying to get that same property now with my income. Editing to add this: How would you do it now if you were limited to buying in Los Angeles? My family and my wife and I's job relies on us being here. Would you still try to find something you could build an ADU on? Would you do it all through loans or save up? Would you even do it at all?
If you really want to make this a reality I would love to be the puzzle piece that connects it all for you. I'm a lender and RE Investor that's always happy to help. I'm not one of those "it's always the right time to buy" folks because I have a portfolio of my own. If you'd like to chat and explore options I would be more than happy to be a resource. You're in a great spot financially and with your commitment we can make some magic happen.
@@Robuilt killer response 🔥 For anyone else reading this: don't take your advice from the news or mainstream media. Speak with a professional lender (me) to either a: make it happen or b: formulate a concrete actionable plan to make it happen in the future. Real Estate is a long game, and my favorite one at that. If I can help you please let me know.
I love hearing when people talk about the "not easy." Thanks. If you fix that apartment up it'll be a continuation of your "invest in what you've already got," 2024 motto!
How do you get a mortgage on a house with a repayment you couldn't afford, at least on paper? In my limited experience of mortgage providers, they don't give you a mortgage unless you at least look like you can afford the repayments.
You are allowed to use rental income to help you qualify for your mortgage payment. In most cases we allow 75%. If you rented out one side of a duplex for $1500/month you would add $1125 (75% of $1500) to your monthly income to help you qualify. There are also MTR and STR specific loan programs that will use tools like AirDNA etc to assess the income potential of the property.
@@casasdenick Here in the UK, we have specific buy to let mortgages that allow rental income to be used for affordability calculations. It tends to be done on whether rent is 125% of the mortgage loan or sometimes 130%. Pretty similar to allocating 75% of the rental income to the affordability calculation. I'm not sure if we have hybrid products like you describe for duplexes. Either way though, he says in the video that he got a mortgage he couldn't afford and then later rented out a room to a buddy. Either they put that rental income down in the mortgage application (and therefore could afford it) or they didn't and the mortgage lender somehow still gave them a loan they couldn't afford on paper. I just find the way he talks about how 'broke' he was back when he bought his first houses a little exaggerated.
@@benlime1235 I agree, it makes for a better video in the world of UA-cam. If the numbers don’t pencil out we are not lending on the property. There are tons of options regarding loan programs, but “I can’t afford it and they approved it anyway” isn’t really one of them lol.
Hey rob I’m 32 single what do you think I should do. I’m from California but moved to Kansas City and bought a fixer upper and have been slowly fully remodeling it out of pocket with cash from my job. It’s now finally finished worth maybe $200k. What’s my next move I would like to invest in a home in California as I miss it and there’s way more like Realestate value growth
No. I live in SoCal. There’s a lot of risk involved. Insurance and property taxes are absolutely ridiculously high in all across the state. Keep building up where you are. Get another property in a nice area around where you live. Don’t get greedy and think California is a get rich quick scheme.
California is not a get rich quick but it is one of the most stable and appreciating markets in our nation. If you want to go back to California then do it. I'm a lender and RE investor myself. I have multiple rentals, all in Southern California. They're crushing it, and will continue to do so for a long long time. Real Estate is not a one size fits all industry. There are no blanket statements like "It's not smart to invest in California." If you'd like to discuss more, let's connect. I'd be more than happy to talk real estate for a bit and hear your long term goals.
i got a a townhome in san clemente, ca. bot 20 yrs ago, mortgage is very low. worth just under 1 mil. bot a house with family in NY worth $450, and rented out the basement and covers my bills for that house. no money coming in, but pays for the house. i want to continue this, but i got no 20% to put down in this market either CA or NY or anywhere for that matter. how do i move forward and purchase more with nothing?
@@RobuiltRob, couldn’t he get a HELOC from his other homes (San Clemente townhome prob has a lot of equity since he bought it 20 yrs ago) or is that a bad idea?
I spoke to some of my buyers last week. They reached out because they were tired of waiting. The husband wanted to buy in 2019, the wife said no. You can imagine the rest lol, the house has almost doubled since. While the last few years have not been "normal," there is a very real cost of waiting in markets like Southern California. I'd love to be a resource for you if I can. I'm a lender and RE investor myself. Always happy to help.
The first step in getting anything you want in life is to change your fkn mindset. Going through life with that self-doubt loser mentality of "CAN" I do something to telling yourself what do i need to do to "MAKE" it happen. That simple change can open up a world of possibilities to you and at the same time give you the motivation to get off your ass and finally do something.
Another good one is trying to view your problems as privileges. I get to instead of I have to. "I get to stress about buying another home in the next two months." Reframing it to understand that the things we stress about are often dreams for another. It really helps me keep everything in perspective.
@@casasdenick EXACTLY......i wouldn't consider it a problem but a privilege for me to one day pay millions of dollars in taxes, because that would mean I earned way more.
Rob, i love that youre doing these raw, uncut videos. You have a lot to offer without edits and jump cuts. Nice job.
Great raw talk and gives people a look at what it can take to get into real estate. It can be scary but can change your life!
Excellent video! I got my first house in Marina del Rey in 1999 for 345k with a guest cottage! It's now worth 1.8 mil. It's painful to see the current value. I never should've sold that house!
Love the real talk, Rob!!! Appreciate all you do!!
been there done that brother started like you and now building a 78 unit apartment building in el sereno as owner builder-architect- contractor now its all about being creative and making a way so you can make the project to happen
Thank you for your transparency Rob!!!
Pushing past that fear is why you're on the other side and it's great to see. Congrats!
This video is exactly wanted I wanted this week. I am in the middle of house hacking a duplex. Once we move out we’re going to turn the side where we currently live into a MTR.
Just taking it one step at a time doing what we can do to get ahead!
Can you do a video on your decision to keep this as an MTR vs a STR or LTR? Wondering how much more upside you get as a MTR and if the extra headache is worth it compared to a LTR
So true man. All my purchases have been scary but they usually work out cause u make it work. I have figured out a way to make money off every home I’ve owned due to Airbnb or small business. You can make it work if put the wrench time in.
Thanks for the share. Sounds like you did your research and bought in developing areas. Location is key. Then, anything you sit on for while will appreciate
Mid-term rental (more than 30 days) then local tenant rights kick in such as can opt to stay after lease ends, etc. Is this an issue for mid-term rental in LA? Thanks
This is a great video. A lot of people don’t understand the ability of how to take out a home equity loan to invest in assets.
This is great information. Thanks again.
Watching videos like this kind of sucks when you are just getting started. My wife and I (30 and 28) have a $260k HHI and can't seem to afford anything half decent here in LA. STR is also a lot more difficult to pull off in LA these days. Just feels hopeless in terms of ever becoming a homeowner.
My dude. When I got started in real estate (Kansas City) my HHI was $40-50k. We had $80,000 in student loan and credit card debt.
When we moved to LA our HHI was $140,000. (And still had the debt).
I'm not saying it's easy for you to buy a house in LA. But at the same time, your definition of "half decent" is probably pretty different than mine. With $260,000 (if you have no debt), I guarantee there are things you can buy. By the way, my wife and I were making offers in Inglewood and Crenshaw. So we were really down for anything at that time.
And then we did buy a home in a decent neighborhood. But we sacrificed a lot of comfort to make it work (like having a roommate for 1.5 years and also living in a home without a kitchen for weeks at a time).
I feel for you. But I'd also like to point out that $260,000 is not a bad place to be. The things I would have done for that when I moved here are...not something that I'm about to sit here and write out lol.
Good luck to you on your endeavors. I hope this channel can somehow help you on your journey.
@@Robuilt Hey dude! I admittedly was not expecting a response and was just shouting into the void that is UA-cam comments lol.
I am by no means trying to complain. We have a combined $10k of debt (which is just my own student loans) and about $130k in savings (most of which is locked up in 401k/IRA). I'm incredibly fortunate to be in the financial situation we are in right now. I grew up in a single-parent household that was constantly strapped for cash so it's nice to not worry.
You're right that my definition of "half decent" probably differs from yours. My definition comes from the comparison of what my current rent would get me as a mortgage. We pay $3200/m in SFV for a top floor apartment in a 2020 build. We couldn't even get a comparable property for anything less than $900k, which, even with a 20% down payment, is still out of our budget.
I really thought a six-figure income was some major benchmark when I was younger, but it just doesn't quite go as far these days. Not only has inflation taken its toll, but housing prices in LA are just pretty insane right now. In your own video you talk about your ~$624k that has nearly doubled in price. Your $140k HHI was essentially equal to $280k HHI in today's LA housing market. Also, interest rates are even higher now. So while $260k is decent money, it is actually less than what you came here with initially. If you were really extending yourself to buy the $624k property then, imagine trying to get that same property now with my income.
Editing to add this: How would you do it now if you were limited to buying in Los Angeles? My family and my wife and I's job relies on us being here. Would you still try to find something you could build an ADU on? Would you do it all through loans or save up? Would you even do it at all?
If you really want to make this a reality I would love to be the puzzle piece that connects it all for you. I'm a lender and RE Investor that's always happy to help. I'm not one of those "it's always the right time to buy" folks because I have a portfolio of my own. If you'd like to chat and explore options I would be more than happy to be a resource. You're in a great spot financially and with your commitment we can make some magic happen.
@@Robuilt killer response 🔥 For anyone else reading this: don't take your advice from the news or mainstream media. Speak with a professional lender (me) to either a: make it happen or b: formulate a concrete actionable plan to make it happen in the future. Real Estate is a long game, and my favorite one at that. If I can help you please let me know.
I'm glad you bought this California home!
I love hearing when people talk about the "not easy." Thanks. If you fix that apartment up it'll be a continuation of your "invest in what you've already got," 2024 motto!
How do you get a mortgage on a house with a repayment you couldn't afford, at least on paper? In my limited experience of mortgage providers, they don't give you a mortgage unless you at least look like you can afford the repayments.
You are allowed to use rental income to help you qualify for your mortgage payment. In most cases we allow 75%. If you rented out one side of a duplex for $1500/month you would add $1125 (75% of $1500) to your monthly income to help you qualify. There are also MTR and STR specific loan programs that will use tools like AirDNA etc to assess the income potential of the property.
@@casasdenick Here in the UK, we have specific buy to let mortgages that allow rental income to be used for affordability calculations. It tends to be done on whether rent is 125% of the mortgage loan or sometimes 130%. Pretty similar to allocating 75% of the rental income to the affordability calculation. I'm not sure if we have hybrid products like you describe for duplexes. Either way though, he says in the video that he got a mortgage he couldn't afford and then later rented out a room to a buddy. Either they put that rental income down in the mortgage application (and therefore could afford it) or they didn't and the mortgage lender somehow still gave them a loan they couldn't afford on paper. I just find the way he talks about how 'broke' he was back when he bought his first houses a little exaggerated.
@@benlime1235 I agree, it makes for a better video in the world of UA-cam. If the numbers don’t pencil out we are not lending on the property. There are tons of options regarding loan programs, but “I can’t afford it and they approved it anyway” isn’t really one of them lol.
Why Houston, if you don’t mind me asking? Also any trouble with the recent tornado storm?
Very cool vid man.
Hey rob I’m 32 single what do you think I should do. I’m from California but moved to Kansas City and bought a fixer upper and have been slowly fully remodeling it out of pocket with cash from my job. It’s now finally finished worth maybe $200k. What’s my next move I would like to invest in a home in California as I miss it and there’s way more like Realestate value growth
No. I live in SoCal. There’s a lot of risk involved. Insurance and property taxes are absolutely ridiculously high in all across the state. Keep building up where you are. Get another property in a nice area around where you live. Don’t get greedy and think California is a get rich quick scheme.
@@Xx0GsaburzxX thanks for the reply good advice I’ll get started on another property in KC most likely
California is not a get rich quick but it is one of the most stable and appreciating markets in our nation. If you want to go back to California then do it. I'm a lender and RE investor myself. I have multiple rentals, all in Southern California. They're crushing it, and will continue to do so for a long long time. Real Estate is not a one size fits all industry. There are no blanket statements like "It's not smart to invest in California." If you'd like to discuss more, let's connect. I'd be more than happy to talk real estate for a bit and hear your long term goals.
Hey Rob what percentage is this if your total net worth? Can you do a net worth update video??
i got a a townhome in san clemente, ca. bot 20 yrs ago, mortgage is very low. worth just under 1 mil. bot a house with family in NY worth $450, and rented out the basement and covers my bills for that house. no money coming in, but pays for the house. i want to continue this, but i got no 20% to put down in this market either CA or NY or anywhere for that matter. how do i move forward and purchase more with nothing?
If you're going to live in the property as a primary, you can put 3-3.5% down.
@@RobuiltRob, couldn’t he get a HELOC from his other homes (San Clemente townhome prob has a lot of equity since he bought it 20 yrs ago) or is that a bad idea?
Btw, loved this video style…so honest and down to earth…❤
There are options! I'd love to help you out and share some knowledge. I am a lender and RE investor myself. Let's connect!
So inspiring 🤓
some of us needed to hear this advice Rob, specially with the interest rates and prices of homes in LA, thanks a lot
I spoke to some of my buyers last week. They reached out because they were tired of waiting. The husband wanted to buy in 2019, the wife said no. You can imagine the rest lol, the house has almost doubled since. While the last few years have not been "normal," there is a very real cost of waiting in markets like Southern California. I'd love to be a resource for you if I can. I'm a lender and RE investor myself. Always happy to help.
The only problem is the house is in Los Angeles with crackheads and tents not too far from where you are and high taxes that dont pay for much
Young people: I'm HOUSE-HACKING
Older people: I bought a house and got a couple roommates
Good vid, great beard.
The first step in getting anything you want in life is to change your fkn mindset.
Going through life with that self-doubt loser mentality of "CAN" I do something to telling yourself what do i need to do to "MAKE" it happen. That simple change can open up a world of possibilities to you and at the same time give you the motivation to get off your ass and finally do something.
Another good one is trying to view your problems as privileges. I get to instead of I have to. "I get to stress about buying another home in the next two months." Reframing it to understand that the things we stress about are often dreams for another. It really helps me keep everything in perspective.
@@casasdenick EXACTLY......i wouldn't consider it a problem but a privilege for me to one day pay millions of dollars in taxes, because that would mean I earned way more.
I got hit with a gut punch trying to get my loan approved today. I needed this vid. Thanks for the motivation rob 👍🏻
Did you run into issues?
I would NEVER invest in Commiefornia.