BRRRR vs. House Hacking in the Twin Cities
Hi all!
My job income: $22k/yr
Current rent that I pay: $955/mo
My savings: $50k in the stock market; $11k in a Roth account
I've been looking for a duplex for a couple of weeks as my first property, and stuff is either just out of my range (roughly $150k), or else it's in a sketchy part of town. Three out of the four duplexes I've visited on the MLS have gotten multiple offers within days of being listed. The last one is in a neighborhood where all the residents call it the hood (Thomas-Dale / Frogtown).
Even at the county tax-forfeited auction, stuff has been selling higher than I'd expected — one SFR with an minimum opening bid of $20k and a foundation crack sold for $93k. I couldn't believe it! Are foundation cracks really not that big of a deal?
Should I keep looking for a duplex to house hack for my first property, and just hope to get lucky with the MLS? Move into Frogtown, and hope it turns around (which is seems like it eventually might)? Or would it be better to buy a distressed house, renovate, refinance, and repeat? I have no experience fixing up a house — just minor stuff like painting and fixing toilets.
My current mid-term goal is to buy-and-hold enough properties to cash flow around $30,000/year so I have a net to fall back on if I'm injured and can't work. Long-term goal is six figures per year from investments by the time I'd like to retire (about 30 years from now).
Thanks!
Eric