Royal Oak, MI · Member since 2017 · 6 posts · 1 vote
I am looking to be a first-time home owner and investor this summer in metro Detroit. I would love to house hack using an FHA loan for my first property but multi-family homes in the suburban areas are limited. I am now looking into hold and sell with a SFR. How do I valuate what the expenses are before purchasing the home? Obviously I could speak with the current owner but what if it is a foreclosure? Does the bank have that information?
Rental Property Investor · Columbus, OH · Member since 2017 · 42 posts · 16 votes
9y
Hi Michael!
I love the fact that you are getting creative with your real estate investing strategies! In response to your house hacking venture I would also keep an eye out for SFR homes that have a layout that may allow you to create part of the property into an additional income suite unit. You'll need to invest a little more into getting the property ready for rent. However, this is a good alternative if your market doesn't have any multi-family homes in your price range.
As for doing your due diligence on a buy and hold property I would hire an inspector and/or have the house walked by a trusted contractor. If this is your first property go along with the contractor or inspector you'll learn a lot!
Good luck!
Property Manager · Huntingdon Valley, PA · Member since 2016 · 81 posts · 92 votes
9y
Great advice from @Jared Cauffield! A technique along the lines of that which I've seen in my state (check with your state's zoning laws) is what is called a condo conversion--where they take an SFR and turn it into a 2-unit rental by separating the two.
Yes but generally rentals have the following expenses:
Vacancies, Insurance, Maintenance, Taxes, Utilities, CapEx, Management and obviously the mortgage.