Looking to House hack with a duplex.

[Cameron Jerns]

This makes sense on paper so far but it is my first purchase so I am skeptical. 465k duplex in Olympia WA next to providence hospital. I'm using a VA loan and putting zero down. With the tenant paying near the low end of average rent in the area along with proper cushion for maintenance, cap ex, vacancy, etc. I would be paying about 2k monthly. Only problem is the current tenant is paying significantly below market rent. Can I simply choose to not renew the tenants lease? Are there certain tenant laws in Washington state that might screw me over here?

[Sam Tato]

Hi @Cameron Jerns I house hacked two properties and they turned out to be the best financial decision I've ever made! I'm not familiar with the area so I'll speak generally here.  I'd just make sure of a couple things:
- if you raise rent on the exisiting tenant by a significant amount there's a strong chance they'll leave, not a bad thing, just make sure you have enough runway to cover the turnover expenses.  Since it's your first purchase it could take longer than expected to fill the vacancy, or remove an unwilling tenant as you learn the ropes.
- chatgpt or any other LLM is a great starting point for learning your local laws around raising the rent, just make sure to ask for sources and direct quotes (this helps with hallucinations), then verify
- what's your long term goal for the property? Cash flow, appreciation, or both? I'd just do a thorough analysis to make sure your expected outcome is likely
- bear in mind the separation of expenses between personal and rental, they'll have to be treated differently come tax season.

Wish you the best, good luck!