All Forum Posts by: Charles Evans
Charles Evans has started 6 posts and replied 22 times.
Quote from @Jacob Molina:
Okay, so with that 3-2-1 would the final year of that or end of that the rate be fixed or could it go up any higher?
So I was quoted at a rate of 5.875%, which is the highest my rate will be! With a 3-2-1 buydown, my rate will be the following:
year 1 2.875%, year 2 3.875, and year 3 4.875. After that, it goes up to 5.875 and stays there!
Quote from @Sofia Komrskova:
Don't do home warranty. Learn basic maintenance stuff from YouTube (caulking, painting, learn how to use a drill, etc) and find a well priced handyman for maintenance. Look for somebody who doesn't have all the bells and whistles(fancy van with wrap, marketing, uniform) because you will be paying for that overhead if you do. Just a local guy/gal that wants some side work here and there. Make sure you have a bulletproof lease, treat the tenant fair but set expectations early on.
Thank you! Whats the best way to get a good lease? I've heard about rocket lawyer, do you recommend anyone?
Quote from @Daniel McDonald:
It's going to be pretty dependent on the house to think about what you can expect. For certain areas annual pest control may be needed for colder areas maybe you run the risk of freezing pipes. I wouldn't worry about what will happen, cause something will at some point. I would just make sure you're saving for reserves and expect that first year to be really about learning the house. It's good to see it through each season then you;ll have a better idea of what to expect.
Thank you! Definitely need to get the reserves up a little more!
Quote from @Jonathan Baptiste:
I've house hacked for a year but have been handy my entire life. Learning how to use the correct tools and materials for a job, YouTube videos and even ChatGPT will help you get through 80% of the problems you will run into.
My rule was I would not mess with HVAC, plumbing and electrical Or if it would take more than a few hours. Most other things are worth attempting to resolve yourself after ensuring safety and doing research. Communicate with your tenant on tasks you are uncertain about and confirm if there are comfortable living with fixes you completed or if they would like a professional. If that's the case look into finding a handyman, and make sure to shop around for the best price.
Stuff I have ran into:
lost keys/lockpicking [hired]
broken washer [fixed myself]
shower door [fixed myself]
AC clogged [hired]
Microwave broken [replaced myself]
holes in the wall [fixed myself]
Thank you! I didn't even think about chatgpt for searching for even easier solutions! I appreciate you!
Quote from @Jacob Molina:
How did you do a 3-2-1 loan or how did your loan officer bring that about? I have not heard of one of those, but am gearing up to buy my second house and could possibly use some sort of loan program like that!
It was just an offer (costs extra) through a local lender I used! Ask yours about buydown options!... some rates you can buy down permanently (maybe .5% or something) OR you can do a temporary buydown like I did. You can do like a 2-1 buydown, 3-2-1, or even a 1-year buydown I think! Its great for me where I need to adjust to paying a mortgage and was worried about my monthly payment a little bit!
Hey guys,
This is an update on my first post about a house hacking opportunity I'm settling on! So I did a 3-2-1 buydown and secured a 2.875% interest loan for the first year of the loan, and it will gradually go up a percent each year until it hits my rate of 5.875%! Hopefully, by year 3 the market will be good enough for a refinance as well!
But this was an awesome opportunity for me because this is my first living situation where I will be on my own (and getting used to paying a rent/mortgage) but this will put my overall mortgage on a 400k house at roughly $2000 a month for the first year! And I have a tenant locked in for a year at $1400 (they signed a year lease right before the house was put on the market in December). So I'm looking at only paying $600 a month to live in a house and build equity! And during the next year or two I'm going to save up so I can get a second duplex!
Some questions for the people with experience: What are some basic landlord problems I will most likely run into? Clogged toilets, sinks, etc. Also, would a home warranty be a smart move? Looking at some rough quotes, they start at $30 a month apparently and you can cover things like HVAC, plumbing etc... so I would love to hear some thoughts on that route because I am not handy at all
Post: New House Hacker, Need Tips/Reassurance Please!
- Posts 22
- Votes 15
Quote from @Taz Zettergren:
@Charles Evans congratulations on making the jump! This is the best way to get into home ownership and real estate investing in my opinion. I did the exact same thing 5 years ago except it was a single family and I rented the rooms out to friends, now my wife and I have built a portfolio of 10 homes. Best of luck on the journey and be sure to bump those rents next renewal!
Thank you! The agent says that conservatively I could bump it up to $1600-1800, with it being at $1400 would you say I should try to increase it to $1500 for next year and steadily increase it from there or make the bigger jump straight to $1600+ and risk losing the tenant? Because to me, a steady income is more worth it at the moment than a couple hundred if that makes sense. Maybe I have the wrong approach!
Post: New House Hacker, Need Tips/Reassurance Please!
- Posts 22
- Votes 15
Quote from @Nathan Gesner:
Quote from @Charles Evans:
You aren't crazy, but you must be honest about the true cost of ownership. You have the mortgage, taxes, insurance, maintenance, capital expenditures (roof, flooring, etc.), and also need to consider the cost of vacancies or bad tenants.
I also recommend you charge market rate, for yourself and the tenant. If your side could rent for $1,400 then that's what you should pay so you have money to set aside and build a reserve. You also need to educate yourself on how to manage an investment property. It involves much more than collecting rent or throwing up a Craigslist ad every blue moon. I see so many new investors that lose thousands, sometimes tens of thousands, every year because they make simple mistakes.
Thank you! Is there a website that can help me find the "market rate"? And what would be 3 things you wish you knew going into your first rental management property? A big one I see is if I should let the tenants next door know that I am the landlord or not, what do you think?
Post: New House Hacker, Need Tips/Reassurance Please!
- Posts 22
- Votes 15
Quote from @Wale Lawal:
From my experience, having rental income of $1,400 to offset a $2,600 mortgage, leaving you with a $1,200 payment, is a manageable setup with an income-to-mortgage ratio of 28.5%. To stay secure, I’d recommend saving 3-6 months of mortgage payments, budgeting for repairs, and possibly investing in a home warranty. Building good relationships with tenants and professionals while planning for future scaling opportunities can also help you grow sustainably.
Good luck!
Thank you so much! How does a home warranty work? This property I am getting is a duplex made in 1915 that was: "Taken down to the studs, and professionally rebuilt in 2019." Almost everything mechanical is less than five years old." That's quoted from the listing description.
Post: New House Hacker, Need Tips/Reassurance Please!
- Posts 22
- Votes 15
Quote from @Rene Hosman:
Quote from @Charles Evans:
Good Morning,
So I have always dreamed of getting a duplex as my first house and to house hack to get my foot in the door in real estate investing. My goal was simple: house hack, and after a year browse to hopefully repeat. So now I am 25 and I was finally presented with an opportunity (duplexes are super rare in my area/state btw) I put an offer in and it's looking like it's gonna be accepted!! But this is my first house and I'm starting to get anxious (as all new homeowners might be).
So I just wanted to present the raw facts, hear everyone's opinions, and obviously gain some knowledge and tips from investors!
This property is a 2500 sq ft duplex renovated from the studs up 5 years ago. It's being sold for a little under 400k. It currently has a renewed leased tenant for a year @$1400 a month (the owner of the property rented it out to workers at an under-market rate but could easily get $1500-1700). My mortgage would be $2600 total a month, but with the rental income, it would be $1200 from me and $1400 from the tenant. To me, renting an apartment or a "normal house" would cost more and I'm ATLEAST getting rent towards ownership/equity. I make $4200+ a month after taxes plus overtime if I want it.
So am I crazy for pursuing this? I know this is a higher mortgage, especially for a first house, but does it make sense? I keep thinking about the "what ifs" and everything because I'm a realest... but I know this can and will be a great opportunity for me to get my foot in the door even if I have to tuck my chin and grind for a year.
Any and ALL comments and advice would be appreciated. Thank you.
Congratulations on taking the leap toward buying your first duplex and house hacking! Feeling anxious is completely normal, but from what you’ve shared, this opportunity seems like a great fit for your goals.
Your numbers look solid. With $1400 in rental income offsetting your $2600 mortgage, your personal housing cost is $1200—less than renting while building equity. Plus, with $4200+ in monthly income and the option for overtime, you’re in a strong position to manage this responsibly. Make sure to maintain a cash reserve (3-6 months of expenses) to handle unexpected repairs or vacancies.
It’s smart to consider the “what-ifs,” but don’t let them hold you back. Real estate investing carries risk, but this is a calculated move. Even if you temporarily have to carry the full mortgage, your income makes that manageable. Over time, you’ll also have the option to raise rent to further improve cash flow.
House hacking is an incredible way to learn, build equity, and set yourself up for future opportunities, it's how I started as well and it was the best decision I've made! Treat this first year as a chance to gain experience and refine your approach. Stay disciplined, track your expenses, and connect with other investors for support and advice.
A year from now, you’ll likely look back on this as one of the best decisions you’ve made.
Good luck—I’m excited for your journey!
Cheers,
Rene
Thank you so much!!! It's refreshing to hear such positivity! Browsing around on this website and other forums there is a lottttt of negativity and its really hard to not be negative at times! I work in law enforcement so I already think about all the "what ifs" and worst case scenarios!!!... but it is good to also think "this is going to work!", so thank you!
My biggest question now is: What do I do once (if) I settle/close on this house? Do I need to make an LLC? Do I need to talk to a real estate lawyer for my own lease, or do I use a site like RocketLawyer? What is the next step for me as a new landlord/homeowner?