Matt Porcaro
speaker
689 appearances
2 recordings
1 series
first heard Nov 2024
last heard 1 May
Matt Porcaro’s voice in public audio — every appearance, attributed to the second.
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recordings per month · last 12 monthsRecordings per month over the last 12 months — 1 in all, peaking in May 2026 with 1.
Appearances
So obviously, housing costs are the number one cost for anybody, right? Like your rent or your mortgage payment is usually the biggest cost. So house hacking has become very popular where you rent out portions of your house to cover your mortgage. Or if you're, you know, you really get a good deal, pay for more N plus cashflow while you're living in the property.
So the two Oh three K really just pours gasoline on that, on the house hacking method, because not only are you able to buy a multifamily property, but you're also able to fix it up, build, you know, some equity into the deal, which is what I did. Um, and take that equity to go repeat the process, take that money back out and go buy more multifamily real estate.
It's like the Burr method and house hacking. In your own home. In your own home with only 3.5% down.
So when you talk about, like, return, right? So to put it into perspective, on my first house, I bought a crack house duplex in New York, okay?
Yeah, it's a real story. It was literally a crack house. You know, nobody wanted to touch it with a 10-foot pole, but I... It was kind of the only thing I could afford, even in the New York market. I still had to scrape the bottom of the barrel. And I was using the bank's money, and it was very low risk for me. I only had to put $9,500 down on this two-family, right?
You had $10,000. Let's call it $10,000.
You're using other people's money, which is real estate investing 101, right? And in addition to, like you said, buy the ugliest house on the nicest block. And most of the thing, like when you're a real estate investor, you're just starting out, right? You're looking, you're watching the TV shows and- HGTV and you're like, you want to flip a house, whatever.
And you look at a house and you're like, oh, all right, well, I have to purchase it. I have to put 20, 25% down. And then I have to come out. Then I have to finance the renovation portion of in there looking at hundreds of thousands of dollars. And that was what I was struggling with. I was like, how the hell does anybody do this? You know, I was 20 something years old. Yeah. Like I had, you know,
again, 10, 15 grand, that was it. And that took me a long time to save up, right? That was like the most money I had ever had in my bank account. So, you know, when you look at ROI and using the bank's money, remember, this is a government backed loan product and this is a way to launch you into the game. Now, you know, we could talk more about like how to repeat it and kind of stuff like that.
But ultimately what it did for me was it just leveraged me in really quickly because off of that 9,500 bucks, again, we'll call it 10 grand, the 10 grand, In the first year, I built $150,000 in equity into the property. And then I rented out both units after I moved out a year later. And it's still, to this day, cash flows me like $2,000 a month, $2,500 a month.
So when you look at like, when you say like you look at, you know, for example, if you're looking for a deal, right? You're like, I want to make a 12% cash on cash return, right? That's a respectable deal. Return, right? On a property, right? My cash on cash return with that 203k property was like 600%.
It's not even the same universe.
So there's a trade-off with everything, obviously, right? The reason they're giving you the very low down payment, the reason they're giving you the lowest possible interest rate that you can get at whatever it is at the moment that you get it,
is because owner occupancy to a bank is the most stable you know you know stable asset class right so but you're able to do this to leverage yourself into the game and and it's not a first-time home buyer loan like if you're really you're saying like with your friends if they're willing to go move into another property it just is owner occupancy it's not exactly first-time home buyer now obviously you know it works well for that it's um you know it's also for the person that
already has like a consistent income, right? Nine to five person, someone that's already working that maybe wants to escape it kind of like I did. This is your way into it with very little out of pocket and then reap the benefits very quickly. Because what I did was once I had that equity, not to mention the equity, but also the experience of doing it, the track record.
I was able to show my deal to private money lenders and to agents and be like, wow, this guy's a player.
Yeah, that's big. I talk about that a lot. And I don't think people realize what that means. When you build, when you increase your network worth $200,000,
know people are struggling like oh i can't find good financing for these when you go to the bank and the bank runs your numbers and they they see what you have on your asset you know on your asset schedule and they see that you have like hundreds of thousands of dollars in equity they know that you're good for it fact that if they really had to like come down on you you got some assets so they're more willing to be more flexible with you so one of the biggest things that i was so surprised about when i got that first deal was how much one deal
changes your opportunity, changes how people talk to you. Like I was, you know, I'm electrical engineer by trade. Like you go to a party, you talk to people like, oh, what do you do for work? You know, I'm an accountant, I'm an electrical engineer. You go to a party, and then you talk to people, and you're like, oh, what do you do? They're like, oh, I invest in real estate.
You immediately become the most interesting person in the room. Now, someone watching this might not want that, but it's just a crazy thing to think about, that the opportunity that comes your way, and it only took one. I remember thinking, oh, I only did one. I'm nobody. Sure. But that one, the distance between someone that's never done it to someone that has,
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