Bethlehem, PA · Member since 2015 · 27 posts · 8 votes
Hi all!
So I'm looking to purchase a 3 or 4 plex as a house hack. Unless I can get the sellers to take back financing my plan is to use my VA loan to purchase. I've heard from many people to never let the tenants know you're the owner for various reasons.
So, for those of you who have house-hacked, how have you done your inspections and other due-diligence without letting the current tenants know you are planning on buying and living in the same property?
I agree with @Johann Jells . I know of an investor who lives in his building and the tenants don't know he is the owner, but it is a much larger building that a property management company handles, so he can get away with flying under the radar like that. In the case of a 3/4 plex, I think that the personal touch of you actually caring about the property will help to increase your tenant's pride of ownership as well.
I totally disagree with that idea. I've lived in my househack for 22 years, some tenants like knowing the landlord is around and not some faceless corporation. We've only really had one tenant, a legacy at purchase, take advantage of our personal touch and burn us for a couple months rent. But I would have paid more to have her out.
@Johann Jells I hear you. I think a lot of people I spoke with are coming from a business owner mindset vs a landlord mindset. They would rather be finding deals than fixing toilets. Plus it's an added liability layer. I'm open to both sides, especially since I may end up financing conventional VA it will have to go in my personal name anyway.
I agree with @Johann Jells . I know of an investor who lives in his building and the tenants don't know he is the owner, but it is a much larger building that a property management company handles, so he can get away with flying under the radar like that. In the case of a 3/4 plex, I think that the personal touch of you actually caring about the property will help to increase your tenant's pride of ownership as well.
I agree with @Johann Jells. I don't hide that I'm the owner of my personal duplex. Or any of my other properties, for that matter. In fact, when I have a vacancy for my own duplex, I'll include in the advert. that I live on the other side. I'm surprised what a major selling point that is for potential tenants. I tend to have at least a third of my showings mention they like that.
@Mike Hoherchak, you bring up another good point. If it's your own personal home, I'd recommend you buy it under your name because the benefits of financing for an owner-occupied property vs. a non-owner occupied are night and day. And property sales are public records. Many municipalities even have the records available online. As a tenant, it would put a bad taste in my mouth if my LL was pretending they didn't own the property and were "just" another tenant or the PM. Only to find out they were lying. For example where I live in Orleans Parish (county), all you have to tell me is an address and I can find who or what company owns that property in about 30 seconds.