Real Estate Agent · Washington, DC · Member since 2015 · 7 posts · 2 votes
Hi my my names Tyler and I'm a 19 year old looking for a duplex that I can live in and rent the other half out. I'm In the carpenter Union so I can do a lot of work myself. Just wondering the pros and cons of doing this. Thank you so much!
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
10y
@Tyler Bullis I am sure some people will tell you there are con's, but in my book there are only pros! What you have in mind is commonly known as househacking and you will find ton's of posts on the subject. Some of the things that people will tell you are negatives are really just part of becomming a smart real estate investor. Like, you will have a neighbor. Fair, but compare that to living in an apartment building! The good thing is you are in control and can choose a neighbor. You have to learn how to be an investor (mainly a mindset, some mechanics and really a life skill), but a duplex is perfect to test the water and see if it's right for you. The fact that you post here makes me believe you are serious enough to follow through. What you do at age 19 will make a night and day difference for the rest of your life. You will learn so many lessons and will be much ahead of your friends in a few years, not only financially but also mentally. My advise is, don't do all the work yourself - only do what you are good at and bring some other trades in, especially electrical and plumbing. Make sure you buy in a good location, you can upgrade the building, you cant upgrade the location. You will build equity when you improve the building, you will live for free (or at least pay less, because you have rental income) and you will learn a ton. The first property is scary, it does not matter if you are 19 or 29, but take the advice you will find on BP and in hindsight you will see there was no reason to be scared at all. Good luck!
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
10y
@Tyler Bullis I am sure some people will tell you there are con's, but in my book there are only pros! What you have in mind is commonly known as househacking and you will find ton's of posts on the subject. Some of the things that people will tell you are negatives are really just part of becomming a smart real estate investor. Like, you will have a neighbor. Fair, but compare that to living in an apartment building! The good thing is you are in control and can choose a neighbor. You have to learn how to be an investor (mainly a mindset, some mechanics and really a life skill), but a duplex is perfect to test the water and see if it's right for you. The fact that you post here makes me believe you are serious enough to follow through. What you do at age 19 will make a night and day difference for the rest of your life. You will learn so many lessons and will be much ahead of your friends in a few years, not only financially but also mentally. My advise is, don't do all the work yourself - only do what you are good at and bring some other trades in, especially electrical and plumbing. Make sure you buy in a good location, you can upgrade the building, you cant upgrade the location. You will build equity when you improve the building, you will live for free (or at least pay less, because you have rental income) and you will learn a ton. The first property is scary, it does not matter if you are 19 or 29, but take the advice you will find on BP and in hindsight you will see there was no reason to be scared at all. Good luck!
That is a great idea. You will be able to live free while your tenant pays off your mortgage. Then when you get a little older and want a single home you can simply rent out the other half and now you have a full blown investment property.
Good luck to you & I'll see you around the forums.
Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
10y
I agree with @Marcus Auerbach, with just a couple items to add. If you are in the carpenter's union, I am sure you can get solid recommendations for tradespeople. When you are hiring contractors, let them know that you want to shadow them and help. If you learn how to repair plumbing, electrical, roofing, etc, it will benefit you in many ways. For one, it will give you a good idea of how difficult any given job is, which will guide you when getting bids in the future. I've been able to give suggestions to my contractors that they had not thought of, saving both of us time and saving me money. It will also give you to ability to make basic repairs rather than bid everything out.
Secondly, and probably the most important tip- be diligent in your tenant screening. A bad tenant can be more expensive and time consuming than you could imagine. Make sure you are getting someone in there who will respect the property and you. I've made poor choices and had tenants that cost me more to get out and clean up the place than I made in two years of them paying rent. It's the most important job you have as a landlord.
Good luck out there- you have so much time and opportunity, make good use of it!