Getting into our first house hack

[Anthony Cangialosi]

Hi everyone,

I’ve been learning about real estate inventing for a couple months but haven’t started yet. I think the best strategy for me and my family would be house hacking.

Currently we have a traditional mortgage on our home that we purchased in 2018. Im handy so we’ve fixed up the house quite a bit on the inside and outside. I haven’t had the house appraised, but I’m guessing we have around 150k in equity. With having young kids and working full time, being able to buy a house that needs mostly cosmetic updates that I can do myself would be easier than buying a property I would have to travel to without the family to work on. 

I’ve thought about selling our current house, using that equity to pay for a single family fixer upper that we’d work on for around a year, and do it again. Except instead of selling the next property, holding it and renting it out. 

If there’s anyone who’s done this strategy It’d be great to hear how it worked out, and how you transition from house to house when you’re holding the previous property you were living in.

[Pat Quaranto]

I don’t have any experience doing this personally, but I’m on Long Island and this is exactly what the couple who owns the property that my girl lives in does.

They bought a home, lived in the home while they renovated it, added a basement unit and rented it out. Moved out after a year and renting the top floor out, and now repeating the process with another house down the block.

The rent downstairs is 1700 and I believe they’re getting 3400 for the rent upstairs. Upstairs currently is a mid-term rental but plan to do long-term after they move out EOY

[Anthony Cangialosi]

After more consideration, this route won’t be the best for my situation. Having young kids we’ve decided it’s best to not move around.

Instead, my goal is to find an investment property in my local market (Rochester, NY), ideally a single family or duplex. I’d still like to leverage my skills and experience with home improvements. Finding a property that needs mostly cosmetic rehab in a nice or upcoming area would be best. 

[Jonathan Greene]

Thankfully, you changed your mind on this. Your partner and family would have hated you. Rochester is great for investment and the prices are decent to get a duplex (4 bed, 2 bath min total).

One concern though, when people who are not contractors say they are good at home improvements, they aren't usually as good as they think and their value isn't higher, it's actually lower because of unpermitted renovations or personal cosmetic choices. Is that you or do you have contracting experience?

[Pat Quaranto]

Quote from @Anthony Cangialosi:

After more consideration, this route won’t be the best for my situation. Having young kids we’ve decided it’s best to not move around.

Instead, my goal is to find an investment property in my local market (Rochester, NY), ideally a single family or duplex. I’d still like to leverage my skills and experience with home improvements. Finding a property that needs mostly cosmetic rehab in a nice or upcoming area would be best. 

Upstate NY is much more affordable than where I’m from. Being from Long Island sometimes I feel like I’m just so used to home prices here and think everywhere in NY is priced the same. Obviously that’s not true. Might have to look upstate more than I have been rather than out of state. At least I’d be able to drive to it if need be. Looking into multi-family too down the road but I have zero experience with any type of renovations! I’m a sales guy, lol. Just started reading about rehab costs and it’s a ton of information to take in.

[Preston Garcia]

Quote from @Anthony Cangialosi:

After more consideration, this route won’t be the best for my situation. Having young kids we’ve decided it’s best to not move around.

Instead, my goal is to find an investment property in my local market (Rochester, NY), ideally a single family or duplex. I’d still like to leverage my skills and experience with home improvements. Finding a property that needs mostly cosmetic rehab in a nice or upcoming area would be best. 

Hey, let me know if you need any assistance. I’m a local investor friendly agent over here.

[Anthony Cangialosi]

Quote from @Jonathan Greene:

Thankfully, you changed your mind on this. Your partner and family would have hated you. Rochester is great for investment and the prices are decent to get a duplex (4 bed, 2 bath min total).

One concern though, when people who are not contractors say they are good at home improvements, they aren't usually as good as they think and their value isn't higher, it's actually lower because of unpermitted renovations or personal cosmetic choices. Is that you or do you have contracting experience?

 Hi Jonathan,

I understand that concern, I do not have contracting experience. However, due to my college and career experience I can handle any of the electrical work while following the NEC. I’m not as strong in the other trades, but I have a keen attention to detail and don’t take shortcuts. I plan on handling most of the cosmetic updates and mechanical repairs, to a point. If there is something that I don’t feel I can accomplish with professional results, while cutting costs, I would contract that out.  

I’m aware of permit requirements in my local township, and I would have to follow up with what’s required in the location of the investment property. 

The cosmetic choices would be based on popular preferences that would appeal to hopefully everyone. 

I appreciate you taking the time to list those concerns. I have a lot to learn so any pointers are welcomed! 

[Jonathan Greene]

Quote from @Anthony Cangialosi:

Quote from @Jonathan Greene:

Thankfully, you changed your mind on this. Your partner and family would have hated you. Rochester is great for investment and the prices are decent to get a duplex (4 bed, 2 bath min total).

One concern though, when people who are not contractors say they are good at home improvements, they aren't usually as good as they think and their value isn't higher, it's actually lower because of unpermitted renovations or personal cosmetic choices. Is that you or do you have contracting experience?

 Hi Jonathan,

I understand that concern, I do not have contracting experience. However, due to my college and career experience I can handle any of the electrical work while following the NEC. I’m not as strong in the other trades, but I have a keen attention to detail and don’t take shortcuts. I plan on handling most of the cosmetic updates and mechanical repairs, to a point. If there is something that I don’t feel I can accomplish with professional results, while cutting costs, I would contract that out.  

I’m aware of permit requirements in my local township, and I would have to follow up with what’s required in the location of the investment property. 

The cosmetic choices would be based on popular preferences that would appeal to hopefully everyone. 

I appreciate you taking the time to list those concerns. I have a lot to learn so any pointers are welcomed! 

If you are doing electrical work without proper licensing (even if you have the skills) and without permitting, you are putting your house at risk and your insurance. This is exactly what I was talking about. DIY should be left to cosmetic things like flooring, not plumbing and electric.

[Anthony Cangialosi]

Quote from @Jonathan Greene:

Quote from @Anthony Cangialosi:

Quote from @Jonathan Greene:

Thankfully, you changed your mind on this. Your partner and family would have hated you. Rochester is great for investment and the prices are decent to get a duplex (4 bed, 2 bath min total).

One concern though, when people who are not contractors say they are good at home improvements, they aren't usually as good as they think and their value isn't higher, it's actually lower because of unpermitted renovations or personal cosmetic choices. Is that you or do you have contracting experience?

 Hi Jonathan,

I understand that concern, I do not have contracting experience. However, due to my college and career experience I can handle any of the electrical work while following the NEC. I’m not as strong in the other trades, but I have a keen attention to detail and don’t take shortcuts. I plan on handling most of the cosmetic updates and mechanical repairs, to a point. If there is something that I don’t feel I can accomplish with professional results, while cutting costs, I would contract that out.  

I’m aware of permit requirements in my local township, and I would have to follow up with what’s required in the location of the investment property. 

The cosmetic choices would be based on popular preferences that would appeal to hopefully everyone. 

I appreciate you taking the time to list those concerns. I have a lot to learn so any pointers are welcomed! 

If you are doing electrical work without proper licensing (even if you have the skills) and without permitting, you are putting your house at risk and your insurance. This is exactly what I was talking about. DIY should be left to cosmetic things like flooring, not plumbing and electric.

I agree with this. Depending on the location of the rental property, I would need to confirm that I have the proper licensing and I’m following the local permit guidelines. 

Having over 10 years of experience in the electrical field, and correcting numerous poorly executed electrical installations, one of the biggest value adds that I have is this experience. All of that work would of course follow the NEC, local code requirements, and be inspected by an approved electrical inspector. The same would be said for the plumbing work, however I would not be doing much besides typical toilet, faucet, and sink repairs. 

I appreciate you taking the time to make sure I’m aware of how critical it that any work, especially mechanical work, is done properly. 

[Levi Blum]

House hacking is a great way to get started in real estate, especially if you are handy, that will be a big help.

Buy a 4 plex and rent 3 units and use one for your self.

[Carini Rochester]

Quote from @Anthony Cangialosi:

After more consideration, this route won’t be the best for my situation. Having young kids we’ve decided it’s best to not move around.

Instead, my goal is to find an investment property in my local market (Rochester, NY), ideally a single family or duplex. I’d still like to leverage my skills and experience with home improvements. Finding a property that needs mostly cosmetic rehab in a nice or upcoming area would be best. 

 This describes what I've been doing over the past decade, in my spare time, while still working my full time job, in Rochester and suburbs. It's possible I knew your family. I knew Cangialosis who lived on a steep slope by the Genesee River in Irondequoit. Is that a relative of yours? Message me off thread. I'd enjoy meeting you. I'll tell you about some of my cosmetic remodels and we can maybe benefit each other!