All Forum Posts by: Diego Ortega

Congrats! It looks like you have already started moving on your goal! Here are a questions/thoughts I would focus on. 

-Is there somewhere you can stay if you don't find that duplex deal yet? Family, friends,etc.  I know it isn't ideal, but you don't want to take a bad deal just because of feeling rushed. Can you place some things in storage in the meantime? Selling and buying a home takes time.

-Ask your agent for a net out sheet that will give you a good idea of how much money you will actually net out of the deal. There are lots of fees and agent commissions that will come out of your profit, maybe even taxes.

-A house hack may not cashflow right away with you living in it, so keep that in mind. My gf and I own a duplex we just house hacked as a way to increase income. The mortgage is $1280 with an FHA Loan, 3.5%. We purchased for 190k. We renovated both sides and just rented out the bigger side for $1500 a month. With utilities also being covered by the rent, we are not cashflowing, but living for free! When we move out, we will cashflow about $1500 a month.

-Can you lower any other monthly debts? Always a great idea.

You may have already thought of some of these. You seem very prepared and I would say you are not having analysis paralysis. You're making moves! Keep it up and it will start to snowball!

We just finished our 2nd Flip in Clawson, MI and were very excited as this one went by way quicker. The first was about 7 months, and this one was more work and done in 3.5 months! The problem is we finished a week before thanksgiving and it's been beyond dead since. We've had 4 open houses and only 2 official showings. The only feedback we have gotten so far is:

-I wish it had a basement.

-There are some apartments nearby (it's an area where there are homes and small apartments/condos together.)

-Not a fan of the layout.

We did have one person very interested that was excited about the house and her agent requested comps from our agent to see how we landed on the price. We sent them and are awaiting to see what happens. The comps line up well with our price, but I wouldn't mind coming down a little if it meant selling sooner. Our agent says it's been dead in the area with only 2 pending sales in the last 30 days, so suggested a price drop is not in order since nobody has mentioned price being a problem. She said for every 10 viewings, there should be an offer. If there isn't, then we lower.

She did also suggest since it is slow and the holidays, maybe we pull the listing and put it back up after the 1st of 2018 so it doesn't look bad that it's been up so long. What are your thoughts and what would you do in this situation? This sale is what will really jump start a lot of our investing goals.

Here is the home:

https://www.zillow.com/homedetails/207-N-Marias-Av...

It is basically a brand new home with all new furnace, ac, electrical panel, windows, etc and really proud of how it came out. Plus a 4 car garage which i think is a big selling point in the area. It even has an engine hoist, lol. I'm going to share the numbers and details after the sale in the success section (crossing my fingers).

Thanks and I welcome any advice about the home and selling during a slow holiday season.

Thanks,

Diego

Wyatt Simon If you're very sure of the numbers, I'd say it sounds like a great deal! I'm doing one in Michigan with my gf in a duplex just got a tenant. Would you make the roommates sign a lease? That's the only gray area I see that could be tricky.

Michael Arnold we do a lot of the work ourselves but the painting company i used so far are on the list of good price and good work. Still trying to build the team as we ramp up and start paying to get the work done faster. We have a carpet company we liked as well that we used. But don't have much to compare to yet.

I'm in the process of finishing a flip in the city under you, Clawson, and used a company called Performance Painting. They were a pleasure to work with and also really good with their prices. If you are gonna go with painting the entire exterior, I'd ask them for an estimate since they are nearby.

Thanks for the response guys! I'll probably pull a report of both and see which ends up being most accurate.

My girlfriend and I are house hacking a duplex in Oak Park, MI. We have one unit ready for rent for the 1st of December and the city inspection is on the 8th of November. Unit details:

-1,500 Sqft Two Floors (200 of that is in an unfinished basement which is clean and includes washer and dryer)

-4 Large bedrooms (Duplexes have huge rooms compared to the older homes in the area)

-1 Full bath, 2 half baths. (New lowflow toilets in all, and all freshly glazed tile, new vinyl tile, frshly glazed tub.)

-New Flooring, new kitchen, stainless steel appliances, granite countertops.

-AC Condensor Unit will be added this spring coming up. Just kind of cold now.

Seeing as this is basically like a brand new high end home (might be a bit much for the area, but we did all the work ourselves and since we are gonna live here for at least a year or two, wanted it to look nice for us, and to attract a good quality tenant). My questions are for anyone with experience in this area and rentals in general in the metro detroit area:

-Is there somewhere else I can look for information on a fair rental price to get a good solid tenant? I have been using craigslist and zillow. I know there are some sites you can pay for the information, but is there a really good one you think is worth paying for? Should I just call a property management company and ask even if I plan on managing it myself? It was at $1100 before and needed a lot of work. We were hoping for $1400-$1500(mortgage payment for us is $1280), and they have to pass the usual 3x rent combined income, full credit and background check (we will use rentprep.com), employment verification, etc.

-Living here now, the city seems pretty safe with low crime. I would consider this a C neighborhood, is this a good assessment? The front and rear doors have have Security Bar doors, but I don't know if it's because of how the city used to be. The state police are nearby, as is a high school and nice park. Would putting up a security system be needed?

-Any other experiences, good or bad with renting in Oak Park?

Thanks!

-Diego

@Kurt Hines

I always had this idea that single family homes are 1.5x rent and apartments/condos are 1x rent. Really large apartment complexes/big companies set up lower deposits for really good credit. This is all from my rental experience.

Now that my gf and I actually own a duplex we are going to house hack and put up for rent in Oak Park, MI, we are not so sure. So in the same boat. We want a good quality tenant to take care of the place. What other qualifications are you doing? We are thinking:

-3x rent gross (combined or single income)

-640 credit score

-No evictions or criminal history

-Will verify income with paystubs/calling job

-Previous landlord references

We will use rentprep.com since they say they verify everything that is reasonable.

What about refinancing money back out of the condo once you get a good grasp on it?

@Mustafa Ahmad

As long as you live in one of the units for at least a year I believe. Anyone, feel free to correct me if I'm wrong. We just did it through our lender. If you want out of the FHA you need to refinance a year or more later. But the nice thing is you can do it all over again. There are a lot of articles on this website about that. :)