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Notes for BiggerPockets Money Podcast 123
Guest: Avery Heilbron
Audio time: 1 hr
Read time: 2 min<\/h6>\n\n\n\n

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One-line Summary<\/h5>\n\n\n\n

Learn how Avery Heilbron is planning for financial independence through real estate, with 5 units at just age 25.<\/p>\n\n\n\n

His Journey with Money<\/h5>\n\n\n\n

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• Always been frugal, did not like spending money<\/li>\n\n\n\n
• Picked up a side hustle de-leading properties<\/li>\n\n\n\n
• 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) <\/li>\n<\/ul>\n\n\n\n\n\n\n\n
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  • Located in Everett, 2 miles outside of Boston<\/li>\n\n\n\n
  • Started going to BiggerPockets meetups – met current real estate agent through this<\/li>\n<\/ul>\n\n\n\n

    First House Hack: Duplex<\/h5>\n\n\n\n

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    • Started looking for houses end of 2018, closed March 2019<\/li>\n\n\n\n
    • Used FHA loans because lower down payment (3.5%)<\/li>\n\n\n\n
    • 1 unit is rented out to Section 8 tenants\n
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      • Rather than a disadvantage as some investors might think, Section 8 is guaranteed, on time income<\/li>\n<\/ul>\n<\/li>\n\n\n\n
      • Numbers\n
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        • $525,000 purchase price<\/li>\n\n\n\n
        • 3.5% down payment FHA loan<\/li>\n\n\n\n
        • Mortgage\n
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          • Originally: $3307 \/ month, 4.125% rate<\/li>\n\n\n\n
          • After refinance: $2850 \/ month, 3.375% rate<\/li>\n<\/ul>\n<\/li>\n\n\n\n
          • Unit 1 rent: $2400 on tenanted unit through Section 8<\/li>\n\n\n\n
          • Unit 2 rent: $800 for roommate, $400 for girlfriend<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

            Second House Hack: Triplex<\/h5>\n\n\n\n

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            • Started looking about a year after the first duplex<\/li>\n\n\n\n
            • Also used FHA financing (converted duplex into investment property)<\/li>\n\n\n\n
            • Two units currently with tenants, 1 vacant unit that he’ll move in to<\/li>\n\n\n\n
            • Strong buyer\u2019s market allowed him to get this great opportunity<\/li>\n\n\n\n
            • Numbers\n
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              • $800,000-value property bought for $678,000 in Jan 2020<\/li>\n\n\n\n
              • 3.5% down payment FHA loan<\/li>\n\n\n\n
              • Mortgage: $3950, rate: 2.875% <\/li>\n\n\n\n
              • Unit 1 rent: $1500 (studio)<\/li>\n\n\n\n
              • Unit 2 rent: $2000 (2-bedroom)<\/li>\n\n\n\n
              • Unit 3: vacant (will be moving in)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

                Thoughts on Investments<\/h5>\n\n\n\n

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                • In a position of strength with high-paying job, so no need to build up a large reserve (has about $16k in reserves)<\/li>\n\n\n\n
                • Overall FIRE plan: invest in 401k, some Vanguard funds, mostly saving for down payment for more properties<\/li>\n\n\n\n
                • What\u2019s next? Save money, invest in Vanguard stocks with surplus<\/li>\n<\/ul>\n\n\n\n

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