All Forum Posts by: Chris Hanisco
Chris Hanisco has started 3 posts and replied 86 times.
Post: Single parent - Should I buy this duplex and live in half?
- Rental Property Investor
- New England
- Posts 86
- Votes 75
Originally posted by @Theresa Harris:
Even if it doesn't pay the entire mortgage, it pays a good chunk of it and you have another source of income. Make sure you save part of the rent for taxes and repairs.
I agree with the others that if after viewing the rental unit, you aren't comfortable with the tenant, write the offer such that it is vacant upon possession AND inspecting the vacant unit before closing to check the condition.
Thanks! Yes, I do plan on making it contingent on being vacant at closing.
Post: Single parent - Should I buy this duplex and live in half?
- Rental Property Investor
- New England
- Posts 86
- Votes 75
Originally posted by @Jassem A.:
Since you are handy I would see if there is 2-4 unit building nearby that might need more updates so that you can save money on the purchase price. This one will work but will not bring back a great return at that price.
Thank you. There's nothing else here in the school district. Multi-families are rare here. We are fairly rural.
Post: Single parent - Should I buy this duplex and live in half?
- Rental Property Investor
- New England
- Posts 86
- Votes 75
Originally posted by @Kyle Joseph:
@Chris Hanisco Are you under any kind of deadline to move out of your current residence? Purely from an investment perspective the returns are not wildly exciting + some have mentioned you may want to increase some of your repairs and maintenance. If you have the time you could continue to look. Longer term once you move out, you may find that having your money tied up for <8% ROI may not be best use of your money so it's important to understand what the exit plan may be. That said, the benefits of you eliminating your current rent and living in one unit may make it worth it. Other option would be to offer below asking so that the numbers from an investment perspective are more attractive.
Kyle - I am month to month at my apartment, but I am somewhat anxious to get out.
And the $310k priced I calculated is already below the $325k asking. I will look further into the numbers adding in more for repairs. Thanks!
Post: Single parent - Should I buy this duplex and live in half?
- Rental Property Investor
- New England
- Posts 86
- Votes 75
Originally posted by @Jeff Barnard:
@Chris Hanisco I think this is a great strategy and is one I am currently using myself in southern NH. I like that you ran the numbers assuming both units are rented out. This way you will know how the numbers look when you move out. One piece I do not see in your numbers is Utilities. It may be the case that the units are metered separately for heat and electric, but is there a common electric meter that will be your responsibility? What about Water/Sewer? If the house is on a well and septic like many in southern NH, you may want to bump up the CapEx % you used. All in all - great strategy with decent numbers. I would just recommend you think about the exit strategy. You don't want to be in a negative cash-flow situation when you move out...
@Jeff Barnard
The utilities are separate, with the exception of septic and well which are shared by the units. I plan to get a septic inspection done. The age is unknown, so I have to assume it's from 1985 and might need replacement. Luckily, my current landlord installs septics and has good pricing. He did the septic at my last house (sold due to divorce) and did a great job.
For exit strategy - I'm not sure. My plan is to stay put until both boys graduate HS (2023) after that, I don't know. I'd probably keep it as an investment.
Post: Single parent - Should I buy this duplex and live in half?
- Rental Property Investor
- New England
- Posts 86
- Votes 75
Ian - I agree! There just aren't many opportunities like this here. I have to move quick.
Originally posted by @Ian Walsh:
If it were me, I would get a much better understanding of the numbers and not let speed blind my logic. If the numbers don't work , I would pass and not allow the speed of closing to pressure me.
Originally posted by @Chris Hanisco:
@Ian Walsh
Thanks! My problem is that this all just happened so quickly and I don't know how to understand the numbers well. I haven't had time to really learn. I'm trying though. I think as long as I'm living there, I'm fine. It won't pay for my whole mortgage, but it will knock my half down to what I can afford.
Post: Single parent - Should I buy this duplex and live in half?
- Rental Property Investor
- New England
- Posts 86
- Votes 75
@Michael Noto
Yes, the offer would be contingent on seeing the other half for sure. Thanks!
Post: Single parent - Should I buy this duplex and live in half?
- Rental Property Investor
- New England
- Posts 86
- Votes 75
@Ian Walsh
Thanks! My problem is that this all just happened so quickly and I don't know how to understand the numbers well. I haven't had time to really learn. I'm trying though. I think as long as I'm living there, I'm fine. It won't pay for my whole mortgage, but it will knock my half down to what I can afford.
Post: Single parent - Should I buy this duplex and live in half?
- Rental Property Investor
- New England
- Posts 86
- Votes 75
@Ann Bellamy
Thank you! Yes, I think I put like 1% in there. My thought was that my teen boys and I would be doing the lawn and landscaping. I can reach the gutters myself too. Snow removal shouldn't be much despite hiring someone. The parking is literally 4 spaces with no driveway. The roof seems to be in good shape and the siding is vinyl.
Post: Single parent - Should I buy this duplex and live in half?
- Rental Property Investor
- New England
- Posts 86
- Votes 75
@Sean Lambert
Great advice on those contingencies! Thank you!
Post: Single parent - Should I buy this duplex and live in half?
- Rental Property Investor
- New England
- Posts 86
- Votes 75
@Shaun Weekes @Joe Scaparra
Thanks for the info!
My mortgage guy suggested I not go FHA due to the everlasting PMI. I'd put 20% down if I could, but I just don't have enough saved yet. Putting 10% down at least leaves me with some cash (about $21k) for repairs and living. (My youngest is getting braces tomorrow. Eeek!)