New from Cincinnati, OH - TriPlex under contract!

5 Replies

Hello Everyone! 

I've been reading books and listening to the BP podcast for 2 or 3 months now and decided to jump in last Friday by submitting an offer on a Tri-Plex and they accepted! I'm from the Cincinnati area and the Tri-Plex is in the South Lebanon area.

I'll be doing a house hack by moving into one of the units and essentially getting paid to live there! Which is so cool! Using an FHA loan with 3.5% down. If all goes as planned, will be closing at the end of July.

About me: 

- Graduated with a degree in Engineering Physics with an emphasis in Mechanical Systems from Murray State University

- Graduated college and moved to Cincinnati area in summer of 2017

- I work as a design engineer at a large medical device company

- Hobbies: Building things/tinkering, playing music (classical guitar and regular guitar, cello, bass, etc.), building and flying remote control aircraft, kayaking, fishing, hiking, being outside in general. 

My goal is to have a 6-figure income coming in through real estate by the time I'm 30. I'm 22 so I have 7 and a half years to do that, which should be doable!  I love my job and don't foresee myself leaving it ever. If I want to start my own company later on, having a 2nd income would help reduce the risk of that since I wouldn't be dependent on my current 9-to-5 to pay the bills. I'll be getting married at the end of the year so also having the option to not rely on a job so I can spend more time with my future family is exciting. 

Anyways, hello everyone! I'm excited to be starting down this path! 

Welcome Nicholas and congratulations!  Luckily it sounds like your contact wasn't on one of the MFH's I've been trying to lock down over the last few weeks!   I'm not having luck with an agent who can review and get me the info in time to make a bid before it's already sold!   MFH's are selling like hotcakes out there right now!  I'm about ready to bite the expense and go stay in a hotel there a few weeks so I can jump on these as they come up...or find a better agent.

Hi Nicholas,

Congratulations on jumping in and getting started; it sounds like you have solid goals and a good plan.  House hacking seems like a really smart move, especially in the early stages of your life (before kids, etc.).

It also sounds like we have several things in common. I'm an electrical engineer and my undergrad was in Physics, I play the guitar/bass/drums, and I enjoy trail running and hiking and am getting into paddleboarding.

I've lived in and around Lebanon for about 20 years now, so let me know if you have any questions about the area. I'm in the process of partnering on my first fix-and-flip, so I'm not a seasoned investor, but I've been reading REI books for a year and half, have listened to all of the BP podcasts, and have been focusing on learning the local market from an investing perspective.

Anyway, welcome, and congratulations on jumping in on your first deal (and your engagement)!

-Alex

Andrew, hello! I've seen quite a few MFH's in the Hamilton area, which is a bit north of the downtown Cincinnati scene. Personally, I work and want to live away from the downtown area so finding MFH's where I'm interested in hasn't been too difficult. I haven't looked near downtown, but I imagine it is much harder to find something closer to that area. But maybe check in Hamilton. There's quite a few there. Some not so great parts of Hamilton, but there's also some nice parts too. 

Hello Alex! Very cool. Definitely does sound like a lot of similar interests! Good luck with your fix/flip. Will you be attending the Cincinnati REI meetup on Tuesday? This particular one is about house hacking. This will be my first meetup to attend.

-Nicholas  

@Nicholas Morgan late to the party but I wanted to check in and see how your house hack is going? Like @Alex C. I work in the Dayton area and have been frequenting some REA meet ups. I just completed my first live in flip (summary post to follow soon w/ pictures) and man was it a steep learning curve filled with learning moments and tons of fun. Though I will say having 8 paws and a supporting GF makes for a hell of a daily clean up when living in a reno. My next move is to house hack a multi unit too. Looking forward to hearing how you are doing. Best of luck!

Dyl 

Originally posted by @Dylan Paul :

@Nicholas Morgan late to the party but I wanted to check in and see how your house hack is going? Like @Alex C. I work in the Dayton area and have been frequenting some REA meet ups. I just completed my first live in flip (summary post to follow soon w/ pictures) and man was it a steep learning curve filled with learning moments and tons of fun. Though I will say having 8 paws and a supporting GF makes for a hell of a daily clean up when living in a reno. My next move is to house hack a multi unit too. Looking forward to hearing how you are doing. Best of luck!

Dyl 

Hey Dylan, congrats on the live-in flip! 

Unfortunately, the triplex fell through. I was concerned about some structural stuff so after getting in the crawlspace and noticing that the joists were extremely rotted (I could literally break pieces off by hand) I brought in a professional. He said the main joist had completely rotted away and it was one of the worst crawlspaces he's seen. They quoted me $50k to properly fix it all. Granted, that may have been a little pricey and over-the-top, but what wasn't quoted was all the drywall cracking and such that would have to be repaired after the house gets jacked up and re-set onto new joists/pillars and such. Soooooo, in the end we walked away. 

After that we had a duplex under contract that was closer to my work and was great. Everything was going well. It had a full basement and in a nice part of town. Agreed upon $115k at the end of the day with all closing costs paid by seller. Inspections and everything went well...until the appraisal came in. It appraised for 95k....$20k under value. I was doing a 3.5% down FHA so I didn't have the 20k sitting around to make it happen and the seller was unwilling to budge. For the record, the numbers all made sense at $115k and no one suspected that it would come in lower (on our end at least, I have reasons to believe the seller suspected/knew it would be under-appraised). Anyway, we had to walk away from that property too.

We finally landed on a single family property that was even closer to my work and has been fantastic. Although I haven't become a landlord as soon as I had hoped, this property will cashflow ~$300 once we move out. We had sellers pay for mold remediation and I replaced all the flooring. We hope to move out into a multi-family within a year and are looking now. By moving into a house-hack situation it will allow us to save our $650/month mortage+taxes and gain a $300/month cashflow from renting. So by moving into a househack (assuming PITI is paid for by tenant/s) we will in essence get a $950/month cashflow!

-Nicholas 

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