All Forum Posts by: Account Closed

Hi BP Community,

I'm evaluating a buy and hold duplex (3/1, 1/1.5) to house hack with moderate rehab necessary to drive up rents to market value and stay competitive with more modern rentals in the Philly area. My requirements are $100/unit in positive cash flow and to hit the 1% rule. I've done so but...

We originally planned on ~$35k, but received an inspection report that requires an additional ~$13k in structural, electrical, and other work. My girlfriend and I plan to live in the first unit (1/1.5) and rehab the second unit (3/1) first to rent out. We will be funding the deal with an FHA loan (3.5% down), and all rehab costs out of pocket.

My question lies in the calculation of rental income when running numbers in the BP Rental calculator...

Should I input the rehab costs and anticipated post rehab rental income when searching for my "homerun" offer? Or should I use comparable rental income for the duplex in its present pre-rehab state?

Here are the numbers I'm working with:

Asking Price: 270k

Est. Rehab: 48k

Offer: ???

Any and all feeback is much appreciated!

Thank you,

Jesse

Brendan, I haven't worked with a property management company on the buying side. But I had a positive experience with OCF Realty as a renter. Very efficient, transparent and detail oriented. Easy to work with and responsive through the showing to lease signing and move in. Any problems were taken care of promptly for preventative maintenance (Winterizing apartment, etc), maintenance, and bookkeeping (open ledger system with tenants.) Their services and pricing are outlined here: . I'm not sure of how they rank from a pricing standpoint, but have been using their rates for all of my rental property calculations. Jesse

Thanks, @Filipe Pereira. That makes total sense. 

Hi BP Community,

 I'm looking to invest in a multifamily property for a house hack and running numbers in the BP Rental Property Calculator. Without getting into all of the numbers for this particular fourplex, does it make sense to include the rental "income" from the unit that I will be living in? Technically I'm not paying myself this money to live there, but I'm also not paying another landlord to live in their unit. 

Thoughts? 

Thanks, @Joseph Scorese!

Jesse

Thanks everyone. Very good to know. Jesse

Hi BP Community,

This is my first of many posts to come. I'm a newbie investor living in Philadelphia, PA and interested in small multifamily units (duplex - quadplex) to house hack as my next residence in June 2018. I've read about the benefits of FHA loans and 203k loans to lump in rehab costs. But when is a good time to get pre-approved for these loans?

I appreciate any and all feedback!

Jesse