Would you invest in this?

Question

So I am finally going to be buying my first duplex and 🏠 hacking for a while. I know I read a lot that says cash flow is King and all that. But I have a chance to get a duplex with a long term tenant in one unit. The thing is that I will end up paying out of my pocket around 200$ on the note, not including any repairs funds to be calculated.

I see ppl that are buying duplexes in other markets in upwards of 250k this one is under 100 with minimal repairs.

Can I get some of your thoughts please

Thanks so much in advance!!!

I see ppl that are buying duplexes in other markets in upwards of 250k this one is under 100 with minimal repairs.

Can I get some of your thoughts please

Thanks so much in advance!!!

Lou Gonzales · Answer

I don't know Joshua, I'm here in Chicago and if I found a duplex where I could get away with only paying $200.00 and a little elbow grease towards my mortgage I'd have to do it. In time that elbow grease and the mortgage payments will make sure the property appreciates and the note gets paid down, not to mention the tax benefits. Be sure to do your due diligence to make sure they're aren't any hidden liens. As far as moving out, I would think your market rents would be more than your $200.00 resulting in some good cash flow. Or did I miss something? And don't forget you can throw your RE commission into the mix.

Ryan P. Kotschedoff · Answer

@Joshua Ryan Meador

Thank you; that means a lot.

Joshua Ryan Meador · Answer

@Lou Gonzales Yeah im doing some more research now. i am trying to verify the bills in that home by calling some people i know that live in the area.

@Federico GutierrezYou know they are not very investor savy over here.  I am learning from all of you !!

Federico Gutierrez · Answer

Which area are you buying this duplex in?I see your an agent, what would be good advice is ask your broker his thought on the situation

Joshua Ryan Meador · Answer

@Jeff Barnard

Yeah Jeff that makes a lot of sense to run it as if I was not there. And I will definitely do the calculations a little later.. I appreciate your thoughts sir. Have a good day

Joshua Ryan Meador · Answer

@Ryan P. Kotschedoff

Yeah compared to others I feel like it is a good investment. Thanks Ryan.

And let me tell you, Your 16 and already have a plan in mind I admire you. Keep it up. You will do great things

Jeff Barnard · Answer

@Joshua Ryan Meador I would recommend using the Rental Property Calculator to run the numbers assuming you are not living in the duplex. Do the numbers work? Do they meet your minimum criteria? If so, no big deal if you need to pay a few hundred bucks a month to live there. Where else can you rent for that cheap AND have complete control over your living space. If the numbers don't work with both units rented, then your ability to exit (by renting out the 2nd unit once you move out) goes away. Keep the end in mind...

Run the calculation and post it here for others to review. Best of luck...

Ryan P. Kotschedoff · Answer

@Joshua Ryan Meador

Normally in house hacking I would prefer to have the tenant pay off my mortgage entirely, but $200 out of pocket with some repairs isn’t terrible. Also that’s a big benefit to have a long term tenant that will minimize the risk of vacancy cost. At the end of the day it’s what your market provides with house hacking compared to the other duplexes. I would go for it if you have looked at other possible duplexes and this seems to be the best deal. Good luck

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