New to Real Estate · South Texas · Member since 2026 · 13 posts · 10 votes
So I'm at 20yrs old and I just found out my mom wants to gift me a small rental property that sits within the same acre of our current residence. She suggests that I either rehab the property to increase rental value or move the house to a vacant lot elsewhere and attach a new section to create a double unit rental property. My questions are whether it's a good idea to invest in this at the moment or should I move forward with my original plan of house hacking on a new duplex using an FHA loan? My thoughts so far are that by moving forward with a house hack strategy I will be able to build more equity and cash flow while increasing my general net worth/ wealth. Feel free to ask me more about the situation if you feel it will help with advice.
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
7mo
She mentioned moving it, is it a manufactured home or one with a foundation? If it's manufactured I'd prefer going the FHA, house hack route. Long term would make more sense. If it needs rehab you also have to factor in the cost to rehab and if you can take that on
She mentioned moving it, is it a manufactured home or one with a foundation? If it's manufactured I'd prefer going the FHA, house hack route. Long term would make more sense. If it needs rehab you also have to factor in the cost to rehab and if you can take that on
I believe its manufactured only because it sits on a wooden foundation supported by base bricks. I can agree with you since I don't think taking on a rehab project would be the best benefit for me in the long-run. I think I would rather invest the little capital I currently have on a house hack rather than on the potential of only making a few percentage ROI if i decided to rehab and rent out.
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
7mo
Really? You're being 'gifted' a rental property but you're not sure you want it. Tell your mother she can adopt me. And, I hope you'll rethink the offer and do this instead: make a plan. If you followed your mother's vision, what would be the ROI. What would the ROI be if cosmetic improvements were made or if it was rented for a different purpose than residential. Does it make sense? If so, then gauge your mother's interest in helping with that investment to get it done. If it doesn't, share the facts with her. Whatever way you go, I hope you'll demonstrate gratitude. Never turn down an opportunity until you have fully explored it and then shared the findings with the other party. This could propel you into building a portfolio; this could just show your mother that you have a pretty great business mind. The property may not be sexy but making money/building wealth is always hot.
Really? You're being 'gifted' a rental property but you're not sure you want it. Tell your mother she can adopt me. And, I hope you'll rethink the offer and do this instead: make a plan. If you followed your mother's vision, what would be the ROI. What would the ROI be if cosmetic improvements were made or if it was rented for a different purpose than residential. Does it make sense? If so, then gauge your mother's interest in helping with that investment to get it done. If it doesn't, share the facts with her. Whatever way you go, I hope you'll demonstrate gratitude. Never turn down an opportunity until you have fully explored it and then shared the findings with the other party. This could propel you into building a portfolio; this could just show your mother that you have a pretty great business mind. The property may not be sexy but making money/building wealth is always hot.
sorry didn't mean to sound ungrateful over the opportunity just wanted some insight on whether I should invest in it right now or hold off till I've built a stronger portfolio through house hacking where maybe then I'll have the capital to invest into a rehab property. Keep in mind, the state of the property and capital needed to improve it at the moment is greater than the ROI and benefit. If/ when I receive the property I'm going to do my best to improve it regardless and make the best of its future for my portfolio.
So I'm at 20yrs old and I just found out my mom wants to gift me a small rental property that sits within the same acre of our current residence. She suggests that I either rehab the property to increase rental value or move the house to a vacant lot elsewhere and attach a new section to create a double unit rental property. My questions are whether it's a good idea to invest in this at the moment or should I move forward with my original plan of house hacking on a new duplex using an FHA loan? My thoughts so far are that by moving forward with a house hack strategy I will be able to build more equity and cash flow while increasing my general net worth/ wealth. Feel free to ask me more about the situation if you feel it will help with advice.
Your mom sounds like an amazing lady! Are you able to do both? Using an FHA to house hack a duplex is a powerful way to get going, if your market has the price points that make this realistic I would 100% go this route.
On the existing property, can you rehab this on the weekends? If she is giving you a free place I would 100% fix it up, leave it on her property and rent it out if she will let you. Of course, you will want to have the proper insurance and make sure everyone is covered!