Revealing My Investment Property Portfolio at 27 Years Old
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- Опубликовано: 19 июн 2024
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*Disclaimer: neither this video, nor any content produced by Caleb Hammer should ever be considered investing advice or official financial advice. All content is made for entertainment and educational purposes*
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Bonus Sunday video! Many new subscribers requested for me to break down my investment property portfolio in more detail, so I wanted to put this together for you all next weekend. See you tomorrow for a new episode of Financial Audit... two wild episodes this week
Man I love the fact you are acknowledging the financial help and don't come on top thinking you did all this from 0 (like most of the gurus and "investors " out there)
Going back video to this I’m from a relatively smaller town in Ocala, FL. I can think of a few properties (I’m a realtor) that could match your criteria if you were still looking. That’s awesome that almost a year ago you made this video.
We definitely need an update for 2023. I love all of your content man, keep it going!!!
Thanks for sharing. So educational. Love these transparent financial videos on youtube
Man I'm only 19 in college, but you are seriously inspiring me to save up to buy a rental property. Love your content keep it up!
The earlier you start, the better!! You'll be so freaking rich when you're older!
it’s not as easy as it sounds…
@@danielivko6819 Okay? Don’t be so discouraging
Long distance rentals is something I’m highly considering once I get a place of my own. Great example you set for the viewers!
Thank you! And only if you form a good relationship with the management group!
Wow! That's impressive! I really enjoyed learning about you in this video. It helps to understand where you are coming from and how your expertise can help others in financial trouble. I really enjoyed this. Thanks for sharing!
Even in a flat housing market, it is almost always better to pay mortgage insurance than to wait, unless it’s FHA which has permanent mortgage insurance. Once equity builds up to 20%, you can often get it waived.
Brooo came across this channel and i gotta say this is dope to see! good stuff man definitely learning from your videos thank you! bless up 🙏
Thank you so much!
Can you walk us through how you buy the out-of-state properties? How do you know what rental brokerage companies to trust?
Great video! Love your financial audit content. Would like to see one where you audit yourself and break down what you spend and make in a day/week
Thank you so much :) And I want to do that too! Maybe at a subscriber milestone!
Try to get on Millennial Money
^second that
Over 800K subs since this video. Congrats.
Pretty good advice overall. I would personally focus more on paying down debts as they are a liability but they are your dice to roll.
I enjoy watching your videos. You do a great job. Keep it up.
Thank you Karen!
Thanks for sharing your own portfolio! For someone in a similar situation, it's great to see what you're doing and thinking. What real estate tools did you use to find the properties you ended up investing in? I'm trying to find something for myself, but would love any advice on tools to search for areas/properties that have good returns.
Could you make a video on how you budget your salary vs. your passive income?
Great video! I have a primary but looking into a rental property. May consider out of state
A tip for first time home buyers, look into Conventional 97 loans. Long story short, you can lock into a primary residence for only 3% down if you qualify. An advanced tip I would recommend is to find a turn-key duplex that you plan on using as your primary residence. You can get a Freddie Mac/Fannie Mae loan @ 85% LTV and have a renter pay off most of, if not all of your monthly mortgage payments while you live in that home. You might just find a good enough deal on a property where that one side's rent can also cover the property tax and insurance too. And the most important thing of all, RUN YOUR OWN NUMBERS (DCR, ROI, NOI, COC, CAP RATE)
Interesting set of choices - however, given that its 800 square feet (your condo) - do you think it is really worth 750k 30 years down from now(that's just taking your mortgage interest not including any property taxes/HOA)?
HA realized I wasn’t subscribed but have been watching for weeks!
Killin it man! Congrats
Thank you, Marco!
Love all your videos. Definitely obsessed how can I get your help lol. A family with no debt besides mortgage but want to know how to invest and budget.
Thank you so much!! And I have appointments linked in the description :)
Love you rental property content. My husband and I are also landlords. However, we went with multi- family homes (Duplex) live in one side/rent the other. I have a couple questions:
1) Do you have your properties in an LLC?
2) If yes, do you have separate LLCs or just one?
3) Do you have a separate "emergency" fund for each property, or are you comfortable with only having 6 months of your expenses? You said you budget 6% for repairs/vacancy.
Thanks
Hey Caleb, I found your channel from your tiktok and I really enjoy your content. I'm in a similar position right now that you were in. I graduated from PSU last year in finance but I have been working in a low level position, applying to jobs and hoping to start working in my field very soon. I'm about to turn 24 and the job hunt has been kind of a struggle for me. Recently I've been feeling down about my situation, and your story gives me hope that I will make it all work out eventually. Thanks for the content.
Just keep your head up and apply for jobs like it IS your job... you've got this!! And my very first college football game in a marching band was at PSU as the opposing team. We got crushed because we suck, but it was super fun!
@@CalebHammer Appreciate it, that's the plan right now. I'm biased, but penn state is one of the best places to see a football game, never disappoints.
goodjob finding those properties so cheap. I have not wanted to buy out of state just because what happens when something goes wrong? Are you going to fly out to check on your unit?
I've been waiting for the market to cool off. Would you recommend a broker and/or property manager in those less expensive areas?
What if there is a emergency repair or you need to do a eviction how do you cover those expenses when the profit margin is $504 a month.
Have you thought of mobile homes before? My great grand parents owned a park and did amazing from it.
Ngl, I had visited University of Texas on a tour because of my love for RoosterTeeth I had back then. I was in a very similar state back in the day I can totally understand how that would interested in coming to Austin
ive been on a binge on these videos! Pretty cool to be a part of the channel early before you blow up (which seems pretty likely you will)
Thank you so much, Alexis :) it seriously means a lot!
Out of curiosity, are you financing these with personal mortgages? Do you ever run into DTI issues qualifying for additional mortgages? I'm in a pretty similar situation, but have just bought #1 so far. I've got a few friends that rent as well, but they finance through business loans, and their apr gets re-evaluated every 5 years. I'm not a fan of that style of loan, but the upside is they're much more legally protected with LLC's
You won't run into DTI issues buying rentals. You get to count the rental income as personal income
In the UK - 30 year mortgages don't exist - they've been floated around recently - but the most you can get is 10 years which is still not that common...I don't know one who has one. Which is why when the Bank of England recently put up the interest rates - lots of peoples mortgages increased by £100's of pounds a month. Ours was technically lower than most just over £400, but that has now increased to over £600 - an increase of nearly 30% is tough. Having mortgages with such long term does mean you know your payments...but don't you get charged if you sold and paid off your mortgage early?
Your portfolio is amazing! I would love to start making money from real estate like you! What reason do you not have any aspirations to pay off your properties? I have a rental that I really feel the need to pay off. Is there a pitfall to paying off a rental that I don’t know about?
Saw you on TikTok and subscribed to your RUclips channel the second I saw it. Would love to see if you can recommend and refer contacts you’ve used to purchase out of state rentals. My wife and I have a rental property in our home state of Utah and are recent co-owners of a mobile home park in the eastern US and want to look at other out of state investments.
Thank you so much!! And okay!! I might be able to soon...
Hello Caleb, I am a Pharmacist who has seen the impact of lack of financial literacy on my patients health. I want to make a change and create content that is free and accessible to everyone and that is also available in different languages. ( I speak Spanish) My dream is that one day these ideals will be popular enough and we can push legislation to make a change in our school system. If you see this and would be interested im discussing please let me know! Your transparency in your videos is so refreshing and exactly what I have been looking for.
What books RUclips channels are other resources have you used to educate yourself on this topic?
I learn so much from your videos!! They're great! Keep it up!
thank you so much, Johnathan :)
@Caleb Hammer do you offer the same thing from your financial audit series but over video call?
How much did you make annually in that tech job? And what did you do?
Good stuff. Can’t wait for more on your investments.
Thanks Kevin!
Really been enjoying your videos, keep it up
Thank you so much, Eddie! :)
Kudos!
That’s amazing !
Holy crap. Everything I know about Austin is from Achievement Hunter 😂
So how do you mitigate to risk of debt? Do you not lose sleep at night having 3 mortgage payments attached to your name? Shouldn’t you at least have enough liquid cash to cover your Properities in the event of another market crash or pandemic? Im a completely amateur at this stuff but the risks seem to jump out at me. And that’s not even assessing the contracts on the home.
This may be my new favorite channel. Easiest like and subscribe ever. In your opinion, do you think it's a bad idea to buy a first rental property now, or should new real estate investors wait until the housing market is more secure / stable?
WOW, thank you so much!!! And that's kinda hard to say... for me it comes down to a 12% cash on cash return. If I can get that now, even with hire rates, then it is still a good deal. And if rates go down in the future, I can refinance. If they go up, then I get in when they were low!
Caleb, how did you get in touch with out of state firms that presented you deals? I have historically found my rentals on the MLS. Thanks! HAMME TIME 🔨
Hammer
Love the range of your content! Found you through TikTok.
Thank you so much, Elizabeth!!!
175 condo fees.... i'm looking at 1250 maintenance fees on a co-op
what's with the difference!?!
...is $500/mo cash flow really worth 400k in liabilities? If the housing market tanks...
Check out the Pittsburgh, PA market! I invest in the east suburbs (Monroeville, Forest Hills, North Versailles, Turtle Creek, McKeesport) and the return is amazing. My cash on cash return for the house I’m currently house hacking is 9% just for the one unit that’s getting rented. I’m 19 and I own five units, so that should say something about the cost.
Oh nice!! Thank you, I will check it out!! 5 at 19?!?!? You wild!! haha love it
I've been looking in the Pittsburgh area, I live in Denver so it's too expensive to own rentals here. I've never been to Pittsburgh so I don't know the good or bad areas. Where would you recommend areas to avoid? Do those suburbs you mentioned have any areas you would not invest? Anymore information would be appreciated
Did you do all of this while working that job you got with your friend and are you still in the same position?
More on that soon ;)
My only concern is that your buying in a highly inflated market, only time will tell.. i bought my prime residence in march of 19 for 330k, a home in Colorado on 3 acres.. 3 yrs in and the house is now valued at double the purchase price, kinda shocking really, becuse i wouldn't buy it for 600k
What firm is the one out of Illinois?
Hey Caleb, your videos are packed with valuable info and clearly a ton of effort. You can probably grow a lot faster and inform your viewers better with just a few very very quick adjustments.
1. add timestamps so people can skim around to what they are most interested in
2. breakdown your videos in to shorts that you can share on tiktok and yt shorts
3. key frames - make short cuts and zooms
4. color correct and buy a mega bright light, this is soooooo simple and will go a very very long way
3/4 might just be hiring an editor.
Hey! Thanks for the feedback :) I do have #1 for financial audits! And my TikTok is very active with clips from the channel. for 3 and 4, yeah, lots to play with here! I actually already have some color correcting pre-sets from premiere and 2 film lights on me! But maybe they are not enough...
Hey thanks the great content!! Also you have mentioned the citi cash card, I have been pre approved for a citi custom cash card. Do you know which is better?
oooo I don't know the custom one!! I'll have to look into it, but I love the double cash card.
I wanna say u had great parents that actually gave a shit about you
You’re on 20k subs now.
Thanks to your support!
I find your portfolio very risky and way over leveraged. I would sell both rentals, pay off the primary and then buy the next rental with cash. What happens when you can’t find a renter or suddenly there is more supply than demand? All of a sudden, you are underwater & you won’t be able to sell because you don’t have a lot of equity. Regardless, it’s still impressive for your age, just risky imo
I get that! It's not very risky when it comes to the options out there financially, but it's certainly risker than a Ramsey plan! But that's why you put 3% a month aside for future vacancies, it covers those down times.
@@CalebHammer sure, but what are you doing differently from Ramsey that made him go broke in the first place? I would argue not much.
@@MarinoRacing I would argue A LOT! Watch my Ramsey video for more context. He did not take out well leveraged safe debt... what he never mentions is that the debt he took out that the bank called were 90 DAY LOANS where he would try to flip and sell. That is NOTHING like a 30-fixed low rate mortgage, nothing close.
i seem to be making the most of my circumstances, i am 23 years old and save save save. i have no debt and i pay my credit cards off month to month. i am on pace to be the youngest home owner in my family. but seeing videos like this make it discouraging and that i cant truly succeed knowing i wont likely own 5 properties in 4 years.
Not at all, fist homeowner in the family is INCREDIBLE. That is generational wealth right there, and you are ONLY 23!! You are going to do very well.
Caleb I would like to chat with you about this video ... let me know if you would be interested in chatting... I live in Minnesota and love your content
Leverage. That's it. Be rigorous though
what's your income from your job? yhanks!
Do you take into consideration that ur removing affordable homes from buyers looking for a primary residence? That 11% return rate is at the expense of someone being able to put 5% down on the home u rent them and pay like 30% less on a mortgage than rent(an estimate, my math is probably off). I know everyone is doing it and I’m not trying to hate, I’m just wondering what ur thoughts are on it? Since I loved ur other video where u gave that woman with bad credit some really great financial advice.
I want to be like you!!
You can be :)
Great content. What I'm hearing though is a ton of risky plays that worked out. Glad everything went great for you but personally I'd never be willing to take risks like this haha.
My 240k net worth is half in my house and half in the s&p, I'm willing to just work for the man and steadily invest and grow my wealth (33 currently). If I had nothing to lose this might make sense but at this point it seems like little upside with a lot of downside.
Do you plan to keep leveraging debt or take some risk off the table?
There has definitely been some risk here, and I plan to be much less risky in the future... I've been very blessed. And that's great to hear though!! We have a very similar net worth, just constructed differently.
This was interesting, but why hadn't you decided to go with a multifamily after getting the condo?
For my next rental? Or next primary to house hack?
@@CalebHammer just curious why you went for the 1300 sq ft instead of a duplex perhaps. At that time wouldn't that have been possible with your budget?
Out of curiosity, and I'm sure this would help others get an idea, how much we're you bringing in yearly at your Austin job that allowed you to clear your debt and save as much cash as you managed to save?
Literally my buddies all went to WMU and everytime I go visit that shitty city I want to buy a property up there.
oooooo, go Broncos! haha. And it was commission base, so I can't remember the exact amount for the year... but some months were amazing and some were meh... just worked the system!
I’m not going to lie that 1k would be nice
It's going to be random, but I wish you the best of luck!!
you're a real class act man, keep it up 👍👍 This is not sarcastic btw I'm being serious. It's so refreshing to see someone in finance be so open and honest about his work
I really appreciate it, Noe! I want to be as transparent as humanly possible. I think we'd all be better off if personal finances were a part of open, normal conversations!
@@CalebHammer totally agree!
Was your savings/emergency fund a side from your down payment money ?
I keep 6 months set aside at all times!
Why not use home equity to completely purchase a new property and no more mortgage? Or two to three more properties with 20% down on each
Right now the interest rates don't seem to be mathematically working in a way where I still kept 20% on those properties and having enough cash to purchase a home in full that will give a 12% cash on cash return. But I have been thinking about it in general!
Step one, get parents
Man. I would like to talk because I’m in an interesting position financially and need help knowing what to do
Come on the show!
@@CalebHammer I would love too, but I live in NY
10:41 omg you hate driving and you like to walk? are you sure you're american? lol
Sorry, Caleb, I now think you should be paying back your student debt instead of telling us about how well your doing I thought you were telling people to pay off their debt, but you use it to buy property and a new car
I was a fan until he told us he’s not into repaying his debt
?? I don’t think you’ve watched my videos lol. These student loans make no mathematical sense to pay off early. Math over basic caveman evolutionarily emotions.