Hi Folks...I'm about to start a house hacking adventure! I'm looking to purchase my first quadraplex in South Florida and would love advice on the following
1. How do I determine if a deal is a good deal?
2. What's the best way to identify good vendors for property maintenance?
3. What type of financing should I be seeking? (I plan to live in the unit until I'm ready to do my next deal...min of 1yr)
Or course and any "Do's/Don'ts" are welcome!
1) Practice in your market. The only real way to judge a good deal is to run the numbers on a bunch of properties in your target area. After you run calcs on 5 to 10 properties you will be able to pick out the potential "good deals" just from the location, no. of units, list price, current rents, and several other variables that will come to you intuitively with a little experience.
2) If you plan on 'house-hacking' and living in one of the units, I would definitely recommend taking care of maintenance yourself. You will quickly learn to do all the little things (changing light bulbs, tightening handles, putting up blinds). If you don't want to get into the more involved tasks, you can hire out the work to a contractor (carpenter, electrician, plumber, etc).
I would not recommend paying for a property manger (~10% of gross income) while you're living in the property yourself.
3) I'm in the process of purchasing a 3-unit with 5% down using a FHA loan. This loan requires you to live in the property for 1 year, but are free to do as you want after that 1 year period. It's a great way to put down a minimal amount of cash up front, while keeping some savings for your next deal.
Thanks for the advice, Rob!
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