Good evening, I am looking to purchasing a multi-family home & house hack in the DC metro area. However, this area is really expensive.
I have read:
Building wealth one house at a time
Quit your F**king Job
Real estate: 25 best strategies
Rich dad’s guide to investing
...And a couple others...
Type of Financing: VA loan
Housing Allowance Pays the mortgage... So cash flow will be upwards of $2,000 per month with both units rented... This seems like a good deal for the area... Please provide any thoughts? Comments? Or advice?
Only you can decide if a deal is "good enough" not anyone else. With that being said, ask for rent rolls (if rented), rental licenses, lead certificates, and be sure to have a home inspection - Baltimore County isn't as regulated as Baltimore City, so it's more landlord friendly.
I would caution you to not factor your housing allowance into the deal analysis. Make sure its a good cashflow property without the allowance before moving forward!
I would not pay $700k in Catonsville
@Crystal A. wishing you success in your journey!
@Russell Brazil I asked my agent to pull comps. You think it’s overpriced?
Thank you for the insight. I do have my chart set up with and without the allowance.
@Crystal A. that is such a beatiful & historic house! I don't have much to offer to the "deal" conversation as I'm not familiar with the market, but I'd encourage you to explore short-term rental/Airbnb options for the house-hack. In the right markets this can often be much more profitable than long-term rentals! Especially in a cool house like that. I'd imagine the DC/Baltimore market is pretty strong for tourism & other short-term needs. Best of luck!
Is it cash flow positive after you rent out your owner occupant unit?
All the best!
In my short time into this business, I have realized the importance of having feet on ground rather than looking at pictures, etc.. I would suggest you speak to property managers in the specific area to get to know the market trend and if your deal that looks good on paper is actually a good deal. Good luck!
The cash flow is $1500 per month with all three units rented.
3 units for 700K in catonsville, I would not pay for it.
1 bedroom is good probably will rent easily, 2 bedrooms is also good,but 4 bedrooms 3 bathrooms units will have some vacancy at times, many renter will look for a single house or full townhouse for that price, and it is over priced for an investor property in catonsville.
A multifamily building's value is based off of its income/cap rate. Check out this page for local cap rates. https://www.benfrederick.com/f... Then calculate this buildings cap rate and determine if its a good deal.
I like the points @Ozzy Sirimsi made about vacancy.
Make an offer based on the value not the list price.