Buy a duplex or save till next spring?

Question

Im 30yo live in Indiana and am in a unique position.  I make 90k a year and am looking to buy a duplex to "house hack", live in one unit and rent the other. Im in a position were i can live rent free for a while, could bank around $30k this time next year. The question is. Should i wait till this time next year or jump on a deal that just popped up? Im a military veteran so i want to use my VA loan to purchse the property with no money down. Save or invest asap?

Michinori Kaneko · Answer

Hi is the "rent" you mentioned just renting out the part of duplex that you aren't living? If that's the case, I don't think it's a bad value (if it's total rent, and you are only going to get half as rent income by living yourself, then i don't think it's a good deal at all).

You can essentially "Save" rent you would pay anywhere else, and instead get money (in form of principal repayment) from the tenant. few other thing you need to consider though is vacancy rate, property tax, capital expenditures, and if you would need to use property management firms (unless you have the time to find new tenants, deal with their complaints, etc.).  Also if you are coliving with your tenant, make sure you clearly write out what the responsibility of the tenants are (who takes care of the yard, common areas, utilities, etc.)

Jonathan Bosse · Answer

Brian, absolutely. Thank you!

Brian Leon · Answer

Better to start investing $$ now. A year from now you'll have enough to ponder another deal. Let your money work for you for this coming year. You have to get into the real-estate game at some point, stop 'waiting' for another year.

Jonathan Bosse · Answer

Wow thank you guys for all the insight, means a ton! I will be seeing the property tomorrow, ill be sure to update. Thabk you for taking the time to help a noob!

Ali Hashemi · Answer

Invest now

Jonathan Bosse · Answer

Thanks for the advice!

Eric Adobo · Answer

Not a 😱 Ing buy at those 🔢 s.

I would buy.

Jonathan Bosse · Answer

Eric thanks for the reply! Yes its a $287k duplex. Comparable rentals go for between $1200 and $1500 a month. Mortgage would be in the $1300 ball park. Property is move in ready.

Eric Adobo · Answer

If it's in a decent area n the 🔢 S work it's a screaming buy.

Would help if you posted some 🔢 S.

Jonathan Bosse · Answer

Hey Michael thanks for your insight! I live in North West Indiana and have a good paying job, so having the unit im not living in not rented would not be a huge deal because i could afford the place without a tenant. I like MFR for the sake of living mortgage free while we hack the property and generate money faster to purchase more properties. This is all new to me and will be my first rental so if I'm completely off here, please let me know! Thanks in advance!