{"id":6907,"date":"2020-05-14T00:32:57","date_gmt":"2020-05-14T00:32:57","guid":{"rendered":"https:\/\/sallybzhao.com\/?p=6907"},"modified":"2024-01-24T19:33:02","modified_gmt":"2024-01-25T03:33:02","slug":"bpmoney123-fire-through-passive-income","status":"publish","type":"post","link":"https:\/\/sallybzhao.com\/bpmoney123-fire-through-passive-income\/","title":{"rendered":"Carefully Crafting Financial Independence Through Passive Income"},"content":{"rendered":"\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h6 class=\"wp-block-heading\">Notes for BiggerPockets Money Podcast 123<br>Guest: Avery Heilbron<br>Audio time: 1 hr<br>Read time: 2 min<\/h6>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h5 class=\"wp-block-heading\">One-line Summary<\/h5>\n\n\n\n<p class=\"\">Learn how Avery Heilbron is planning for financial independence through real estate, with 5 units at just age 25.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">His Journey with Money<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\">Always been frugal, did not like spending money<\/li>\n\n\n\n<li class=\"\">Picked up a side hustle de-leading properties<\/li>\n\n\n\n<li class=\"\">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<!--more-->\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\">Located in Everett, 2 miles outside of Boston<\/li>\n\n\n\n<li class=\"\">Started going to BiggerPockets meetups &#8211; met current real estate agent through this<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading\">First House Hack: Duplex<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\">Started looking for houses end of 2018, closed March 2019<\/li>\n\n\n\n<li class=\"\">Used FHA loans because lower down payment&nbsp;(3.5%)<\/li>\n\n\n\n<li class=\"\">1 unit is rented out to Section 8 tenants\n<ul class=\"wp-block-list\">\n<li class=\"\">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<li class=\"\">Numbers\n<ul class=\"wp-block-list\">\n<li class=\"\">$525,000 purchase price<\/li>\n\n\n\n<li class=\"\">3.5% down payment FHA loan<\/li>\n\n\n\n<li class=\"\">Mortgage\n<ul class=\"wp-block-list\">\n<li class=\"\">Originally: $3307 \/ month, 4.125% rate<\/li>\n\n\n\n<li class=\"\">After refinance: $2850 \/ month, 3.375% rate<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li class=\"\">Unit 1 rent: $2400 on tenanted unit through Section 8<\/li>\n\n\n\n<li class=\"\">Unit 2 rent: $800 for roommate, $400 for girlfriend<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading\">Second House Hack: Triplex<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\">Started looking about a year after the first duplex<\/li>\n\n\n\n<li class=\"\">Also used FHA financing (converted duplex into investment property)<\/li>\n\n\n\n<li class=\"\">Two units currently with tenants, 1 vacant unit that he&#8217;ll move in to<\/li>\n\n\n\n<li class=\"\">Strong buyer\u2019s market allowed him to get this great opportunity<\/li>\n\n\n\n<li class=\"\">Numbers\n<ul class=\"wp-block-list\">\n<li class=\"\">$800,000-value property bought for $678,000 in Jan 2020<\/li>\n\n\n\n<li class=\"\">3.5% down payment FHA loan<\/li>\n\n\n\n<li class=\"\">Mortgage: $3950, rate: 2.875%&nbsp;<\/li>\n\n\n\n<li class=\"\">Unit 1 rent: $1500 (studio)<\/li>\n\n\n\n<li class=\"\">Unit 2 rent: $2000 (2-bedroom)<\/li>\n\n\n\n<li class=\"\">Unit 3: vacant (will be moving in)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading\">Thoughts on Investments<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"\">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<li class=\"\">Overall FIRE plan: invest in 401k, some Vanguard funds, mostly saving for down payment for more properties<\/li>\n\n\n\n<li class=\"\">What\u2019s next? Save money, invest in Vanguard stocks with surplus<\/li>\n<\/ul>\n\n\n\n<p class=\"\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Notes for BiggerPockets Money Podcast 123Guest: Avery HeilbronAudio time: 1 hrRead time: 2 min One-line Summary Learn how Avery Heilbron&#8230;<\/p>\n","protected":false},"author":2,"featured_media":6908,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[121],"tags":[],"class_list":["post-6907","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Carefully Crafting Financial Independence Through Passive Income - 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