First House Hack Property
Hello BiggerPockets Community,
I have been a huge fan of this real estate community and wanted to share my most recent experience. I apologize in advance if this is not the appropriate discussion forum.
I recently purchased a duplex property in June 2019 using a 15% down payment conventional loan. The duplex property consists of unit #1 being a 2 beds-1 bath and unit #2 being a 3 beds-2 baths with separate electrical meters and one shared water meter. The tenants pay their own electricity and I (landlord) pay the water bill which has been averaging around $62.25/month. I currently live in unit #2 while renting one of the bedrooms for $400/month. I inherited a tenant that lives in Unit #1 that pays $925/month and their lease ends in February 2020. My total mortgage payment is $1,335 which includes taxes, home insurance, loan, and PMI. I have been paying $10 out of my own pocket to cover the rest of the mortgage payment (not including water bill).
The Good: I have learned so much in the past six months about all aspects of managing a rental property while living in the property. I pay less than $80/month out of my own pocket to live in a duplex which has help jump start my career as a real estate investor.
The Bad: Since I currently have a full time job which consists of working 60-80 hours a week, It has been difficult for me to find reliable and experienced individuals to help me with repairs around the property. I have made minor repairs such as bathroom water leaks and exterior window water leaks from youtube university, but would like to sub this work out to focus my time on other things.
The Ugly: Tenant from unit #1 has had two bounced checks for November's rent and has not paid December's rent. I have heard every single story of why rent cannot be paid. After multiple "Pay or Vacate" notices, I will be proceeding with the eviction process this week by giving her the option of cash for keys or lawsuit.
Even though there has been multiple ups and downs these past six months, I am glad I have finally started my real estate investing career through house hacking. My goal is to purchase one multifamily property each year to house hack until I can pursue real estate investing full-time.