All Forum Posts by: Michael Henry

@Kyle Larson i started out owning, but quickly realized a can save a lot more by living in an owner occupied duplex. Sold my primary residences and been living in one side of a small duplex ever since.

@Cade Carlisle I came across the app “thumbtack” per a suggestion from another Member here on BiggerPockets. Lots of contractors on there which are all very highly rated.

@Jay Bob that sounds about right I pay around $595 for 4 proprieties

@Ley Nezifort

I’ve had a lot of success with the thumbtack app.

I only did small things my self painting trim to cut cost. Installing fans. All other work was hired out.  

Hi Guys - looking for feedback on things I could've done better, where I could've saved money and or tips / advice on this deal so I can better prepare myself for my next house hack when I move out of this Duplex.

The Deal:

Live In Duplex

- 3bd/2bt 1250 sq ft + 1 car garage per side built in 2008

- Rents $1050 Side A / $1100 Side B

- Purchase Price $280,000

-5% Down Payment ($14,000)

-Purchased already rented, one side to be vacated at closing for me to move in

Mistake I made looking back is the comps I was looking at a brand new duplex listed for $350,000 and a duplex more updated but built in the same year also listed for $350,000 were not truly comps as these duplex are still for sale to this day. Appraisal came in at $280,000 much lower than I thought. But the GRM (Gross Rent Multiplier is 130.5) $2150 x 130.5 = value $280,575

Similar Updated properties are rented for $1300-1400. The unit I was moving into was not livable (to my standards) so I did a light renovation which is detailed below. After renovation I'm estimating I can rent my side for a conservative $1350, side B ill increase rent to $1250 in 2020. It is in much better shape and already rent ready. This should give me a value of $339,300 (130.5 x 2600)

Mortgage including PITI = $1800

Estimated rent = $2600

Property management = $260

Vacancy / maintenance = $260

Net profits = $280

Down payment = $14,000

Rehab = $16,000

Cash on cash return = approx 11%

Equity = $59,000

@Micah Carter I feel like this goes unsaid you cannot finance a duplex with a conventional fanny loan with 3% / 5% / etc. you can however use a FHA loan if it will be a primary residence.

@Erik E. I used guaranteed rate mortgage for my duplex in Palm Bay , assuming if they do 2 units they wi do 4.

I've yet to see a hard money lender than will give you money for a down payment unless your doing a BRRR , and even then you will need to bring 10-15%. Is someone tells you otherwise ask specially which lender will do it.

@Sean McManus I’ll tell you this may not be the best way to do it but it worked for me. I utilized a personal loan for a partial down payment. This end up being $375/mo my cash flow before expenses was $700 more than enough to cover the loan. Paid it off when I had the money to do so.

For reference the 4plex was under my LLC , Perosnal loan under my credit keeping my DTI in check.