House Hacking a Quadplex in San Antonio

[Luis Castaneda]

Howdy y'all,

My name is Luis Castaneda, and I'm a 29 year old newbie who is looking to jumpstart his real estate through the power of house hacking. I currently live in San Antonio, Texas, and I came across a quadplex (2009 build) here and recently got my offer accepted on it! I was able to negotiate 15k in seller credits and looking to get an appraisal this week. I'm reaching out because I feel somewhat nervous about this deal and I'm not sure if it would be considered a "home-run" or a deal that's good enough to get in the game. The biggest risk is the HVAC since they're original based off the inspection which is why the seller was willing to give the 15k credits. There are currently 3 units being rented out and one vacant unit. 

What are some metrics that would be best to determine to move forward with this deal?

Thank y'all for the help and or guidance!
 

[Rick Albert]

Congrats on entering escrow!

One of the things with house hacking is that it gives you room for forgiveness. You would be paying rent somewhere anyways so having something is better than nothing.

Also keep in mind you have loan buy down and tax benefits, which are long term wealth drivers.

If your gut tells you everything is fine, then chances are it is. Plus what's great about a fourplex is you are dealing in bigger numbers. For example if the combined rents are $3,000/month, if rents go up 3%, then you make an extra $90/month. But your mortgage stays the same. So over time it works out. 

My recommendation is to go for the base hits. If you get a home run, great, otherwise, you keep moving on. I meet too many up and coming investors where every time I see them they tell me how they are still looking for that "home run" while I keep buying base hits. I'm on track to buying one rental a year since 2022 and I don't plan on stopping anytime soon.