I have around 65k now and 0 debt to buy a property to house hack. My location currently North NJ prices here are too high and taxes makes this state worthless to me.
I was thinking Philadelphia since its near by and a major city.
Plan was to buy a duplex and house hack it by living in one of the units bed rooms, rent out the other bedroom in the unit on airbnb and rent out the other unit traditional.
Was to use 20k to rehab the property than cash out after 1yr.
Unfortunately ive done many hours of research and have not found anything were the numbers work out.
Should i revise my plan? Buy a decent duplex turn key and if it works out to near 300 a month be happy with that?
2 years and im impatient now. Not interested in single families properties as i feel duplex is the way to go. Im interested in C class areas and better.
I was also thinking invest out of state but would rather live in the property i buy. Any suggestions on strategy, plan, method?
Im using 7% vacancy, 10% pm, 8% repairs 8% capex hoping for $150 per unit
@Mario Gonzalez your numbers are aggressive. Where are you getting your assumptions?
If you can put down 3.5% and find something that cashflows then go for it.
Send me a PM, your numbers are but aggressive theirs duplexes near the city but they pop up occasionally and go fast for the price you want.
@Mario Gonzalez - My favorite strategy is buying a single family house that’s too big and renting 2-4 bedrooms to single working professionals, and that’s primarily because my favorite areas don’t have duplexes for sale. If you can’t stomach sharing your kitchen with renters, then obviously try for a low down payment loan on a 2-4 unit. Hope you have a good w2 income. Sunny and Sun Marie on the podcast bought a 4 unit foreclosure (initial purchase period is for owner occupants only) in north jersey around nyc and have been doing really well with it.
You said I’m using 7% vacancy, 10% pm, 8% repairs 8% capex hoping for $150 per unit. This is honestly too much for actuals. Your actuals will be closer to 4% vacancy (1 month every 2 years because of strong rental demand unless you really have bad marketing), 0% PM (you live next door so you pm it), 5% repairs / reserve and 5% capex (modernizing/rehab budget). Thats 19% more gross rent you will actually keep. That’s if you buy frugally and don’t hire the $500 plumber to use a plunger on your tenants toilet. Nj property taxes, landlord registration fees and any common area utilities are important to factor in.