Updated over 5 years ago on . Most recent reply
My first rental property
Hey! So I’m in process of selling my current home to have money to invest in real estate. I am starting with house hacking a 3 family house, that I’m under contract with. Inspections to come this Thursday!
On walk through of property the 3rd floor unit is out dated and needs renovations, it is below market value and the tenant has been living there for 15 years.
Going into deal, mortgage payment about $1800, with given tenants and conditions, the rental income is $1615. I am ok with putting remaining into mortgage since this will be saving me about $1500 per month, from previous mortgage of sfh.
The hard part, wanting to renovate units to raise rents while tenants are living there. Ideally I’d want the 3rd floor to move after repairs in 2nd floor. Then I can move to 3rd floor for Reno. 2nd floor will then bring in more rent. Covering all costs of mortgage plus some.. in the end, renting out all 3 units will bring ideally near $3000 rent income and cash flow of $1000 or so per month.
Thoughts and inputs? Some advice?
Thank you all!!! Stay positive
Most Popular Reply
@Travis Oakes... Congratulations on your purchase and the bold move you're taking! This may be obvious, but make sure to consider whether converting the LR to an extra BR leaves a logical layout to the property. If it becomes "weird", you may get the higher rent, but have a helluva time trying to sell it eventually.