House Hacking and The Coronavius

[Edwin Byler]

I am a newbie real estate investor from the Charlotte NC and I am about to purchase my first duplex and live in one side. My first question is, how do I split utilities with my tenant. Second question, would you guys hold off on purchasing at all right now in hopes that the market will drop due to coronavirus. I tend to think I should go ahead and purchase the property but almost everyone I talk to (Mostly Not Investors) say that they would wait to purchase because prices will drop. Once again, I'm a newbie and any feedback is welcomed. Thank you all

[Joseph Cacciapaglia]

If your duplex has separate meters, then the tenant should have the utilities in their own name. If not, the lease that is in place should control any reimbursement you receive. If the property is vacant, and you're putting a new tenant in there, be sure to use a lease that clearly defines how you are reimbursed for utilities. Check if your state has any particular laws regarding how the reimbursement can be calculated. Here in TX, we see leases that are not compliant with current rules pretty regularly. I typically avoid properties that are not separately metered, because it's very difficult to control your expenses with those.

I think trying to predict where property prices will go from here is like guessing if a coin will land on heads or tails. Everyone has a guess, but there is no good reason to believe one over the other. There could be a cure or cheap vaccine that comes out tomorrow, and poof this all goes away, or this could last for months or years. If right now is the height of the panic, it could be a perfect time to buy, but there is just no way to be sure. You just have to look at whether or not you're getting a good deal with all the information that you know in today's market.