Renter · Philadelphia, PA · Member since 2015 · 29 posts · 4 votes
hi everyone, I am in a rough situation right now. I'm have had to leave my apartment and need a home (currently staying with mom.) I have tossed around the idea of house hacking because I really need the income and a place to live. I have been looking at what looks like a great deal and may have a lender on board but i just don't think I'm ready to analyze this deal by myself yet.
Investor · NW Indiana · Member since 2015 · 98 posts · 99 votes
11y
"i just don't think I'm ready to analyze this deal by myself yet." Nicole, I would wholeheartedly suggest to you to stay away from RE investing until you acquire more knowledge - practical and theoretical, and become comfortable with it. You will save yourself from a potential disaster.
Renter · Philadelphia, PA · Member since 2015 · 29 posts · 4 votes
11y
well I have no money of my own for down payment because I make under $800/month and my rent is $500, two kids and ailing mother finishes off the rest with the bills I can barely make the minimum payments on. I'm not making excuses just stating the reality of my situation
well I have no money of my own for down payment because I make under $800/month and my rent is $500, two kids and ailing mother finishes off the rest with the bills I can barely make the minimum payments on. I'm not making excuses just stating the reality of my situation
Nicole this could be a Deal breaker. You have to concentrate on where and how you can get a down payment. The first thing you have to do is see if your family or friends can help you and lend you some money. Maybe they can each lend you some money. See if that is possible. Then research on the internet "No down payment how can I buy a house"
First you have to figure this part out. Where do you get a down payment? Speak to your family and friends and see if they will lend you something toward your first hacking house.Maybe a few hundred here a thousand there. Research on the internet "how do I buy a house with low or NO down payment." Start here:
Speak to all Neighborhood Advocates in your neighborhood. Ask everyone on Bigger Pockets. Your neigborhood might have housing clinics or First Time Buyers help or clinics.
Think about getting a partner for your first hacking house. Partners can be the way to buy something that you can't swing by yourself
There might be a friend who needs housing just like you need it and perhaps you can share one apartment with her and rent out the rest in order to pay the expenses,
Call FHA. You have to solve this before you go one step further.
I didn't run the numbers on the properties you provided but I took a higher level view and here is what I saw.
1. The comps for like properties in the area you are looking (19139 and 19143 zips on the edge or just inside University City), are selling on average in the high 200k to low-mid 300k. So I would say this listing is over priced.
2. I found a like property listing at 415K with a recent price drop of 35k. Clear indication that this asking prices here are too high.
3. The taxes on the first property you listed is $3,576 per year.
4. If you put your search in the 49th or 50th address numbers you will find many properties below 200k but still close enough to University City to take advantage of what is going on in that area.
5. The average rent for like properties is $1225 per month.
My first investment buy and hold was a triplex at 49th and Walnut street in the 19139 zip. So, I know the area well. Crime will happen in a major city or any city for that matter, there is no avoiding that, but the type of crime is what you should focus on when assessing the area.
I would suggest that before viewing additional properties, that you take time to determine what your short-term and long-term goals are with respect to purchasing a property. If you can't qualify for a mortgage at this time you may want to try the route of looking for a partnership to help you buy. Figure out if you are set on living in West Philly, will another part of the city with a lower price point do. You will need to factor in the rent you collect and the expenses that will need to be covered by the rent. Will you have enough net from the rent you collect to help cover your mortgage.
I would be more than willing to share with what I have learned and give you some things to concern that you may not have thought about before jumping into your first purchase. Please feel free to send a message to my inbox at any time.
Renter · Philadelphia, PA · Member since 2015 · 29 posts · 4 votes
11y
thanks @Barbara G. I guess I'm all the place because I'm trying to get a feel for comparing properties and how to figure out if something is overpriced without going based on how it looks. Hope that makes sense :)
As far as goals, right now my short term goal is to get out of my moms place(which is not stable for her) and buy my first home for myself and kids. Later I want to upgrade and put my mom in a house (it could be the one I move out of). And my investment goals in the midst of all that are to get as much "house" as I can the first time asking so I can take advantage of the benefits of being a first time homebuyer, thereby giving me a jumpstart on cash flow while I look for a higher paid job and/or get my catering business out of my notebook and into reality.
Hartsdale, NY · Member since 2015 · 874 posts · 218 votes
11y
Nicole is getting a house with your mother an option? If you combine your income with your mother's income would that make obtaining a duplex or triplex or a quad more doable?
Renter · Philadelphia, PA · Member since 2015 · 29 posts · 4 votes
11y
i have considered it and talked with her about it but she is unwilling because she has a FIRM belief that money, business and family dont and shouldnt mix. That said she turned down an oppty a few years ago to rent a 3br house from her/my cousin who is a contractor for $750/m between us. The place is in sw philly he was including reno and willing to finish the basment for a rent increase to $850/m. Had i known about househacking and lease options at the time i would have discussed further with him because he really wanted to sell but was willing to rent to help us out. Also after having had to do a short sale on her house and since she has been on a fixed disability income she has a support/careful mentality towards me "doing real estate" but not willing or able to contribute financially