All Forum Posts by: Mark Douglas

hey all, so I've been house hacking a duplex since 2016 and it's finally time to sell.  after the loan payoff, commissions etc, I should clear 170k.  it won't be taxed according to my cpa.

I'm going to buy a SFR for myself (I know, I know, I should do a HELOC on the duplex and use that...I'm just ready to enjoy my life and do something nice for myself haha)

is it better to keep as much cash on hand as possible, or invest as much into the property as possible? 

initially I was thinking about putting 100k down and putting the rest in savings, but my agent was saying it's not a bad idea to put a smaller amount down and have cash to invest elsewhere

just wondering what other people like to do?

(I also have a 4plex that I'll keep renting out)

ps, I got into investing and house hacking in 2015 thanks to the BP podcasts, forums etc.  it's been full circle.  

it's the whole debate of being happy vs being smart and it's tough haha.  I'll have to run some numbers on a cash out refi and see if I still cash flow on the quad

 makes sense, thanks for your reply!

Hi all, I'll keep this brief.

I've got a 4plex in Clarksville that I bought in 2017 for 195k.  I recently got an offer to sell it for 520k.  After the mortgage payoff and realtor commissions, I'd clear roughly 320k.

I've been house hacking a duplex in Nashville since 2016 and I REALLY WANT A HOUSE ALL TO MYSELF after all these years.

My initial thought was to sell the 4plex, and buy a SFR for 300 cash, and rent out the other half of the duplex, so both sides are rented. I'd use the other 20k to pay off small debts and stash the remainder.

It looks fine on paper, I just don't want to sell and then regret it down the road. 

The other option would be to keep everything as is, and save up a down payment, which would take about 2 years.

I want to avoid a HELOC at this point, I don't want to add any more debt.

What would you do?

I just turned 30 by the way, single, no kids.

Thanks all!

Are there lenders who can do a conventional refi without having to have 12 months clearance after a 30day late pay?

@Isabella White

Hey, I'd recommend just finding a strategy that you're comfortable with, and just being consistent. It's easy to look at other people's progress and start going on their path. Just find what works for you and keep at it :)

@Zach Wright

Hey man, you're on the right track. I bought my first duplex at 23 with an FHA loan, did the rehab and refi'd into a conventional loan, and used an FHA again on a 4plex a year later.

If you're going to go FHA and you're planning on rehabbing to force appreciation I'd strongly encourage you to consider using the FHA 203(k) loan to fund the purchase + rehab, so that all you're putting into the deal is the down payment.

Whichever option you go with (FHA or conventional), just be sure to do have a contractor do the walk-through with you before you buy it so you have a solid idea on exactly how much you'll spend and how much it should be worth in the end, to make sure you can refi out.

Hope this helps!

@Luka Milicevic

It's just me. Did some more research, looks like sales tax doesn't apply to long term rentals, only short term 🤦‍♂️🤦‍♂️