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House hacking for Beginners in Pittsburgh
My husband and I are new to real estate investing. We want to begin by house hacking with a duplex in order to eliminate our current rent payment and have more cash to invest.
Need help finding a duplex … tips, tricks, advice, or properties welcome!
#1 House Hacking Contributor
- Real Estate Agent
- Los Angeles, CA
What has worked well for me is looking at properties that have been sitting on the market. They are sitting because either the agent sucks or it is over priced. That is where some of the best negotiations happen.
What red flags should I look for that would lead me to see a property that has been sitting as an “unwise” investment
Hey Ashley!
That is exciting to hear about your goal to house hack a duplex. I would check out Craig's book (https://store.biggerpockets.com/products/the-house-hacking-s...). There is a lot of good information in there. About the investment in general, you'll first want to find out how you will finance the property. Obviously a high interest rate could eat into your investment. The major factors like the roof, furnace, plumbing, electrical upgrades, and foundation repairs are all examples of costly expenses you'll want to inspect before closing the deal. I am an investor and agent here in Pittsburgh if you want to connect further!
Good luck!
When considering house hacking, the key is to determine two things: how much you can afford and how much you're willing to sacrifice.
For instance, it's much easier to live for free through house hacking if you're willing to sleep on the couch and rent out all the bedrooms on Airbnb. However, not many people are eager to do that.
Once you’ve established your budget and your level of comfort with sacrifices, buy the best deal in your market. Don’t wait 2-3 years searching for the "perfect house hack."
In our case, my wife and I could afford a run-down fourplex that needed extensive work and was infested with roaches. We were willing to make that sacrifice, so we pulled the trigger.
GOOD LUCK!
@Ashley Harris I'd go for a 3-4 unit if house hacking. A lot tougher to live for free or close to it anymore with a duplex. My house hacking criteria for the last few I have done has been to buy the most expensive 3-4 unit I could with it still at least breaking even after all expenses as a long term rental. The overall ROI long term is the highest with that strategy when it comes to house hacks in particular.
Hey @Ashley Harris!
Awesome that you and your husband want to leap into house hacking/real estate investing. My wife and I did the same thing last year when we moved to Charlotte. We purchased a duplex in the city, renovated it, and rented the other unit as an MTR/STR hybrid. It has worked very well so far!
I think house hacking with a significant other is a huge benefit. It's like you're super house hacking haha, because you split the costs with them too.
@Rick Albert hit the nail on the head with his comment. Look for properties with high days on the market (DOM). Properties with high DOM may have rough tenants, some issues, or just bad marketing by an agent. You might be able to find a hidden gem that people have passed over. However, make sure the properties fit your buying criteria and the numbers make sense to you. If the numbers work at a lower price point, then find an investor-friendly agent that is willing to submit offers for you. Some offers might get ignored or outright refused, but all it takes is one offer to get accepted or countered to start negotiations.
@Hunter Stoudnour recommends a great book! I agree! It is house-hacking gold haha.
I want to chime in about the property location. In my experience, I think property location is everything. I say this for a couple of reasons. 1) You will be living in the property, so ultimately you want a property that is somewhere you would like to live 2) Better location will be far easier to rent & likely demand higher rents.
Lastly, I am unsure if you have an Instagram, but I have a house-hacking physician assistant friend who posts a lot of great content about her experience in Pittsburgh @theinvestorpa
Good luck Ashley! Please reach out if you have any questions :)
What areas of Pittsburgh are you looking at? I invest south of the city but I find that there are very clear appreciation spots and very distinct areas that are good cash flow but little appreciation. Make sure you have a vision for what you want to accomplish so that you invest in the right areas
I’ve sent you a DM!
Quote from @Ashley Harris:
My husband and I are new to real estate investing. We want to begin by house hacking with a duplex in order to eliminate our current rent payment and have more cash to invest.
Need help finding a duplex … tips, tricks, advice, or properties welcome!
Current House - Hacker on a Triplex, still a DINK (Double Income No Kids.. for now) purchased off the MLS during COVID. Traditional financing currently in my 3rd year into the hack and looking for another. Just sent a request.
Ashley, house hacking is a great way to get started in REI in Pittsburgh! My best tip would be to pick an area that you have done research on and that you think will be a good rental market. Also, you guys will have to decide what you're willing to put into the home. Are you going to be purchasing a rent ready multifamily that will be more expensive? Or are you open to buying something that needs some rehab for cheaper? I work with an investment brokerage here in Pittsburgh, happy to connect!