I am just starting out, trying to acquire my first property. I have decided to go with the house hacking strategy. Last weekend while at a 4th of July party, I was bouncing my ideas off a few friends that had made some big money of real estate before the market crash, but no longer participate. He told me that I should look into modular duplexes. I did not even know these were in existence. I started researching them and they do not appear to be a bad idea for my market. I am not in the best market, so I will be relocating to about 25 minutes away to start my investing. I have estimated my annual ROI on this property to be around 7.5% - 8.5%. My thoughts are to accept a slightly lower ROI than desired in return for less headache, because I would own a new property that would not need any upfits for years to come. If this is successful, I would then repeat this process, owning 4 units, 2 of which will be new and 2 that are nearly new. Is this a solid strategy?
Welcome aboard. Real estate had been gaining alot of momentum recently and that's because historically it is a solid investment vehicle.
I love the house hack for several reasons. The first and biggest is that's how I started. Bought an owner financed property 4 years ago , had rent from roommates and payed it off in half the scheduled time. Sold it for 3 times what I payed and owed no capital gains because it was my primary for 2 years. Enjoyed homestead exemption. Kept my goals right in front of me. I woke up every morning with no separation of my goals and my true life.
I now have 2 separate rentals and 1 with a partner. In a year I will have 2 more and this is with very little income and no traditional financing. It can be done.
Thanks @David Sugg
What are your thoughts on a modular duplex? Do you have any suggestions/thoughts on this approach. I should be able to make the numbers work.
If the numbers work and you have an exit strategy that works then I would go for it.
Did you go for it?
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