How to buy MultiFamily when Multifamilies arent available in area

How to buy MultiFamily when Multifamilies arent available in area

Member since 2020 · 3 posts · 0 votes

Hey Everyone,

Im a 23 year old looking to buy my first home and househack it to cut down on living expenses while i build equity. I work 50-60 hours a week in Detroit at Quicken Loans, so I would like a duplex within a reasonable distance from Detroit . Since I'm working so many hours and just starting in my career, I want a multifamily that requires minimal-no effort in repairs. I just want to live in one unit, rent out the other, then house hack the next property. The issue is that most duplexes in the Detroit area are projects requiring some sort of work, and in the downriver area, where I am originally from and would prefer to live, duplexes are hard to find. I've tried messaging owners of duplexes for rent asking to buy without success. My real estate agent is not finding deals that are attractive to me as most properties either need work or get purchased immediately before i can set up a visit. Can anyone offer advice other than to be patient? Are there other ways to find properties? I know we are in a buyers market but I'm at a spot in my life where I really want to get started in my real estate journey as soon as possible.

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  • Rental Property Investor · Cincinnati, OH · Member since 2019 · 120 posts · 68 votes
    6y

    Be creative. Think of solutions that can create value towards your REI goals. If duplexes are high in demand, there might be SFRs that can be converted to duplexes/triplexes. Get familiar with your local zoning laws. OR look to buy a large +3 bd property and rent out the rooms. Check craigslist to see comparable rents in your targeted area.

  • House Hacking Specialist · Denver, CO · Member since 2016 · 411 posts · 396 votes
    6y

    We have that same challenge in Denver, CO. I would have to second @Conn G. about renting by the room. You would be surprised how many young professionals are interested in renting out a single room with a shared living space.

    If you are wanting more privacy and willing to sacrifice a little less rental income, you may also consider SFR w/ walk out or walk up basements where you are able to add a small kitchen to. When I was searching for my first house hack, I noticed quickly that there was very little inventory of multi-units and they were all well outside my outside my price range. We ended up finding a perfect SFR with a mother-in-law suite above an attached garage with a separate entrance.

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