My goal is to buy a duplex/tri/quad in the Oklahoma City area by November to start househacking to begin my real estate. I have a couple questions for those who took this route. Would or did you get a duplex even if you needed to pay some of the mortgage each month; say 100 or 200, because the rent your tenant is paying won't cover the cost? When living next to your tenant, did you let them know you were the owner of the property and landlord or did you set it up so that they don't know? I'll probably have some more as this unfolds.
Multifamily is a great way to go. For most duplexes properties here in town the rent on one side won’t completely cover the mortgage (assuming 20% down). You will get some income out of it though, which is the goal. Is there any particular reason you are waiting until November?
The lease at my apartment is up in November and I would prefer to not break the lease and potentially have to dish out thousands of dollars if the unit isn't filled. A little bit a of a background. I have about 20,000 saved up, credit is about 770, and my only real debt is my 230 a month car payment. By November I hope to have 25-28K saved up. By househacking I want to accelerate my savings by getting the 700 a month rent monkey off my back, pay off my car loan early, thus increasing my savings even further and then go on to buy other rental properties.
@Chris Hayes Sounds like a solid plan.
Thank you @Dylan B.
I agree with Dylan! Sounds like your in a perfect place to begin your real estate journey. Good luck!
Thank you, @Rocky Griffin
You can close as early as the first part of October and not have your first payment due until December 1 - hopefully that helps you have enough time to find a good tenant! Let me know if you need any help.
You are on the right path man, I'm doing the same thing. I already paid off my debt, saving money and looking for a plex to purchase.
Depends on your goals @Chris Hayes . $100 "mortgage" payment for a place to live is quite the bargain, but it's all about your goals. I can't answer the question about living next to a tenant, never done that before. Best of luck and ask away. This is a great community to grab some feedback.
I wouldn't drop all of your savings into your first deal, unless you're picking up a value add with some equity you could pull out for your next deal. In a year, you'll be ready to move into another one, so you'll need another round of funding then as well. You'd still want to set aside a budget for repairs and capex on the rented unit, but even if you have to up that figure up by another 1-2 hundred, it'd still be better than paying rent to some landlord who is not you.
Yeah, that's what I'm thinking. I'd really like to get my second property next year. Maybe 2, if I can get some good deals.