Renting Vs. Live-in Flip
I am starting my first full time job in May and have been scouring the market in South Dakota for a residential multifamily deal to house hack in. It seems that in my area any of these types of properties are purchased within a day or two from being listed or even before they are supposed to be listed. They are being purchased for asking price or above no questions asked, and quite frankly would not cash flow with the financing i have available (conventional/FHA).
My question is this:
Do i rent and save money and look to purchase a deal as an investment only property (25% down) or do I pay approximately $400 more a month to purchase a live-in flip? I have found a 2-1 property listed at 160k in great shape with an unfinished basement, and comps of 4-2 with the same square footage of the finished house have sold for 200k-220k in that area. Is it worth paying a bit more per month and up front to get the cheaper financing?
I know similar questions have been asked a million times so if there are any other posts please direct me to them!
Neil
Most Popular Reply
Neil you might want to avoid chasing houses in newer or more desirable neighborhoods. If you see block after block of split foyers, it's not going to be an easy or equitable buy. Too much competition. There are plenty of duplexes and 2/1's in older neighborhoods that you could put some sweat equity into in the next couple years and turn a nice profit.