Beginner to real estate

Beginner to real estate

Rental Property Investor · Scranton Pa, 18505 · Member since 2021 · 17 posts · 9 votes

Hello everyone, this is my first post on BP and I hope to post more. I am a full-time college student in Scranton PA and I work part-time. Through investing in stocks and saving I have accumulated a little over $7k which I plan to invest in real estate.

Recently my neighbor passed away and their family expressed that they do not want the house and are willing to sell it when the time comes. It was originally a 2-unit apartment but was converted into a SFH long before I was born. The house has been well kept and currently is valued around $95k. Because of a family-like relationship and their desire to get the house out of their possession, I could definitely get a deal for 50k or less. However, there are two problems that I face:

1) I would like to convert the house back to   2 units. 
2) They have an in-ground pool in their backyard. 

Would this be too much on my plate for a first time investor/home-buyer? (I would be willing to house hack with this property) 

I don’t know the rules about pools for rental properties so would I have to fill it in because of it being a potential liability? 

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Investor · Mountaintop, PA · Member since 2013 · 110 posts · 57 votes
5y
Another thought, instead of jumping right into converting it back to a double, live in it, and take on a couple of roommates from Scranton U to start making some money.
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  • Member since 2021 · 5 posts · 2 votes
    5y

    Sorry what’s house hacking ?

  • Bath, ME · Member since 2018 · 6 posts · 1 vote
    5y

    Sounds like a potential live in flip/house hack. Could you add value to the house as a SFH? Buy it with a low owner occupied interest rate and rent a few rooms while you do some improvements. Keep the pool because while doesn't want a pool. Check in with an insurance agent to see about liability. A good fence may be all you need. Eventually sell it without paying capital gains and get into that multi family and repeat.

  • Rental Property Investor · Scranton Pa, 18505 · Member since 2021 · 17 posts · 9 votes
    5y

    @George Sprague unfortunately I don’t know if I can add much more value because the house is already in decent condition. The only potential would be slight cosmetic updating inside and outside. I like the idea and I would house-hack when the time comes.

  • Rental Property Investor · Scranton Pa, 18505 · Member since 2021 · 17 posts · 9 votes
    5y

    @Rob Falcigno house hacking is when you live in a multi family property to get a lower down payment because of the perks of being a residential/first time home buyer. During the process you rent out the other units or bedrooms. Eventually when you’re ready for another property, you find a multi family property and move into it again with the benefit of a low down payment. You can rinse and repeat with this strategy over and over again which is why it is so great.

  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    5y

    Glad to see you are getting into it at a young age.  Time is a valuable asset.  You would want to do more local due diligence on your questions such as zoning, comps and contractors.

  • Member since 2019 · 62 posts · 23 votes
    5y

    Definitely house hacking is the way to go. even better if you find a crappy house and you fix it up, then do a heloc to create additional income you can use when needed.

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