Notes for BiggerPockets Money Podcast 123
Guest: Avery Heilbron
Audio time: 1 hr
Read time: 2 min
One-line Summary
Learn how Avery Heilbron is planning for financial independence through real estate, with 5 units at just age 25.
His Journey with Money
- Always been frugal, did not like spending money
- Picked up a side hustle de-leading properties
- Financial position after graduating college in 2018: did not have student loan debt, saved money from summer internships, had high-paying job lined up (data scientist/analyst for an insurance company)
- Located in Everett, 2 miles outside of Boston
- Started going to BiggerPockets meetups – met current real estate agent through this
First House Hack: Duplex
- Started looking for houses end of 2018, closed March 2019
- Used FHA loans because lower down payment (3.5%)
- 1 unit is rented out to Section 8 tenants
- Rather than a disadvantage as some investors might think, Section 8 is guaranteed, on time income
- Numbers
- $525,000 purchase price
- 3.5% down payment FHA loan
- Mortgage
- Originally: $3307 / month, 4.125% rate
- After refinance: $2850 / month, 3.375% rate
- Unit 1 rent: $2400 on tenanted unit through Section 8
- Unit 2 rent: $800 for roommate, $400 for girlfriend
Second House Hack: Triplex
- Started looking about a year after the first duplex
- Also used FHA financing (converted duplex into investment property)
- Two units currently with tenants, 1 vacant unit that he’ll move in to
- Strong buyer’s market allowed him to get this great opportunity
- Numbers
- $800,000-value property bought for $678,000 in Jan 2020
- 3.5% down payment FHA loan
- Mortgage: $3950, rate: 2.875%
- Unit 1 rent: $1500 (studio)
- Unit 2 rent: $2000 (2-bedroom)
- Unit 3: vacant (will be moving in)
Thoughts on Investments
- In a position of strength with high-paying job, so no need to build up a large reserve (has about $16k in reserves)
- Overall FIRE plan: invest in 401k, some Vanguard funds, mostly saving for down payment for more properties
- What’s next? Save money, invest in Vanguard stocks with surplus
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