Ali and Josh Lupo met in college, where they were majoring in human services. Professors always tell them they won’t make a lot of money but just have to take it. Although they both graduated from public schools, worked part-time while studying and “lived a frugal lifestyle,” the couple was left with a total of $102,000 in student loan debt.
As they began planning their wedding in 2017, their debt load and financial challenges became more apparent. Ali said they live paycheck to paycheck and work for very low wages. She recalled that the couple’s combined income at the time was $85,000 and they had no idea how they were going to pay for the wedding, so Josh started thinking about how to pay off debt and save money.
“This process really introduced me to the world of personal finance,” Josh said. “When we were dating, money was not a topic we talked about. Neither of us came from wealthy families where money was talked about.”
By investing more time into organizing their personal finances, the couple began to understand more about the importance of budgeting and paying off debt. But since most of the couple’s expenses are necessities, including rent and car payments, it’s difficult to budget. The couple eventually sold their car but wanted to “reduce their rent without moving back in with their parents,” Josh said.
That’s when they discovered a method called “house hacking” that ended up providing major benefits to the couple’s finances. This approach requires a low down payment on a multifamily property and uses a portion of the rent to cover the remaining payment on the home where the couple lives. They gave up their honeymoon and bought their first rental property in 2018 using all the money they saved from their old 401(k).
The couple’s first home purchase was a $158,000 two-family home with a 30-year fixed mortgage rate of 4.8 percent. The down payment is $14,200, which is about 5% of the home price (including closing costs). The couple rents the upstairs of the five-bedroom, two-bathroom home for $925 per month and pays the remaining $459 per month. Today, the building’s rent is $2,425, Josh said.
Getting there won’t be easy, though. Josh recalled that they made 15 to 20 offers, but every one of them was rejected because people paid all cash and the asking price was too high.
“There were a lot of out-of-state investors because interest rates at the time were less than 7%-8%. Interest rates were between 4% and 5%, so everyone was trying to lock in those low rates,” he said. “We fail again and again.”
Their first trade was actually an over-the-counter transaction. Josh said they purchased the duplex from a local couple who wanted to sell the property off-market and didn’t want to “look for a bunch of investors.” After the deal closed, the couple’s monthly rent payment dropped from about $1,400 to less than $500.
“As two low-income people, this is a huge savings for us,” Josh said.
Even though they’ve significantly reduced their housing costs, the couple has continued to keep busy in 2019. The pair worked six jobs together, both part-time and full-time, while also networking and educating themselves in real estate.
“When Josh and I first started our business, we had no money to buy real estate, so we had to be very, very creative,” Ali said. “Money is a sore point for us.”
But in 2019 alone, the couple paid off more than $30,000 in student debt. They entered 2020 promising to buy more real estate, only to have the world grind to a halt.
“It’s scary for us, not just because we want to buy real estate, but because we own real estate and people are suspending rent collection,” Josh said. “Fortunately, none of our tenants have missed rent. They continue to pay.”
Then in late spring 2020, the couple decided to purchase their next rental property. They bought another house down the street, moved there, and rented out their old duplex. This ended up paying for the entire housing cost. Plus, Ali has a new job, so “the cost of living is actually very, very low relative to our income,” Josh said.
Housing costs have dropped significantly, allowing the couple to make their final student loan payment in February 2022. In just three years, Ali and Josh managed to go from six figures in debt to owning multiple properties.
“Our initial goal was not necessarily to build a huge real estate portfolio,” Josh said. “We just don’t want to take out $100,000 in student loans.”
In April 2023, the couple purchased their personal residence in Albany, New York, for $260,000 at a 6% mortgage rate. The couple makes monthly mortgage payments of about $1,900 and puts down 10.5%.
The couple plans to continue growing their real estate portfolio by purchasing several properties each year. However, unlike some investors, they are focused on off-market deals where competition may not be as fierce.
“We have built many systems to find discount offers and connect with people to find them before they hit the market,” Ali said. “Because (in our market) it’s crazy. Now, the day your house is listed on the MLS, there are dozens of offers, many of them for cash, many of them well over asking price. For new investors , which is really daunting.”
She explained that the couple also doesn’t buy “aggressively,” meaning they only make a few transactions a year and only those that make financial sense for them. The couple now own five properties, including 11 apartments, as well as their own private residence. They declined to disclose their current revenue.
“For us, there is no emotion,” she said. “With this, it becomes a numbers game.”
Now the couple offers advice to other potential homeowners or anyone else eager to take back control of their finances.The brand is FI coupleAli and Josh provide financial and real estate coaching services.
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