I'm getting ready to make an offer on my first investment opportunity. I would like to house hack a duplex which is being listed as a single-family unit. The property includes the two units and the adjacent open lot next to it. (Expanding the entire block from corner to corner about 3/4 of an acre.) Currently both the units are being rented out. I do own a 33ft travel trailer, and was wondering if it is possible to continue renting out both units whilst taking up residency in the trailer with an FHA or Home Ready/Home Possible loan. I have heard of people doing this.. what are your thoughts on the subject.
I am also considering applying for a loan that allows me to build on the open land next to the duplex. It’s really close to a National Park and thus prime real estate for an Airbnb setup. As a new investor my wheels are turning with potential ideas.. but ultimately feeling a little nervous about taking on a big project. Would love to hear some words of encouragement or success stories. Thanks for your time!
Make sure the duplex is legal. If there are two electric meters, it probably is, but you don't want to be forced to use the place as a SFR later down the road and mess up your strategy.
You can park the trailer and live in it if it conforms with the current zoning. Where I live, non-permanent living residences are not allowed in neigborhoods hardly ever.
I am not real familiar with FHA loans, but you would want to make sure they allow non-owner occupied loans since you would technically not be living in the duplex, but on the lot next door.
I would recommend getting a construction loan and building on the lot, absolutely. Just make sure the numbers make sense. I've seen cheap land for sale in areas where the cost to build was more than what the house would sell for! Don't want to be upside down.
It sounds like a potentially good deal if it cash flows well and you aren't over paying for it. Run your numbers! I would buy a deal like that in a heartbeat if the price was right.
Jump in there! The first deal is always the scariest. Remember, just get the thing under contract with a due diligence period if you are reasonably certain it could turn into something good. Take it one step at a time.
Hi I was just thinking of doing something similar how did it work out for you?