Dilemma: House hack a HUD, or Buy a Duplex
Greetings BP
I hope everyone is doing well, i have a dilemma that id like your opinion on,Please feel free to ask as much detail you need to understand the situation.
Here we go, Currently my mother is renting an apartment for 900/month in Westland Michigan and i pay half the rent 450 to help, my name is on the lease she couldnt be approved without me , since she moved to the apartment, i bought a duplex 5months after she moved in the apartment, and since then she we renewed her lease.
My duplex is currently rented with outgoing tenants, i live on the other side, currenlty my renter are paying 775, but once they move on ill rehab and raise the rents to 900, which would put me at cash flow of 200 a month which is great to live in one half ,imagine if i completely moved out.
So heres the Dilemma, theres a Hud house on the market for 60K which will be worth 150K after a 30K rehab, but i cant sell it or rent it for a year after owning it, so i was thinking i could move out my duplex move my mother in and sell my HUD after a Year for the profit. OR
Theres a Duplex on the market for 280K advertised with seller financing in a A- area top schools, but it has a bonus attic area that has a 3rd unit without and address, i was thinking i could have my mother move in my duplexs and ill move in this 2.5plex.
In both scenarios neither of us would need to pay rent, my financing options are VA Loan second teir loan(still looking for a lender) a Conventional rehab load, and seller finacing,
Please advise, does one option seem better then the other, should i try to score both, please lend your opinions