All Forum Posts by: Mirbeni Gonzalez

@Mirbeni Gonzalez I owned a Bed and Breakfast, about 6500sq ft that I had owned for about 14 years. The last 4 years I owned it I only ran it on a very very limited basis and usually only for “friends and family” who were paying with cash and check. I provided a large self serve continental breakfast and suggested that if people wanted something hot that they go to the coffee shop in town or head to the next town over where there were 4 breakfast places. My price reflected this.

So, the building next door (duplex) came on the market and I watched the deals fall apart three times before I jumped in and eventually stole the deal which is a different story. My intention at this point was, and had been, to sell the bed and breakfast.

I was starting to dabble in real estate investing and so renovated the smaller side of the duplex, a 3/1 and moved my existing tenant in and slowly moved myself out of the B&B and into the larger side of the duplex, 3/3.

I’ve since sold the B&B but still house hack the duplex. The rent from the other side helps pay for the bills for the building. My wife is not always totally crazy about it because she had her own house for close to 25 years but since I’ve been house hacking B&Bs for 24 years it doesn’t bother me at all to occasionally hear a bang on the wall or a cough or the toilet flushing.

I think a key to remember about a duplex is to either make sure the numbers will work when you eventually move out of your side or that you have an exit strategy for then or that you are confident that it will have appreciated a bunch by then to give you other options.

Quote from @Mirbeni Gonzalez:

My only experience with real estate is purchasing my first home with FHA in 2020 with the amazing 2.25% and a lot of reading books and blogs to get an idea. My husband and I are self-employed, we provide executive transportation services in Miami. Decent income and good credit score, High DTI because business vehicles and no big savings (Working on that).

We want to grow our company; but we need to move to a better area in Miami and beat the traffic. We think this is our opportunity to start investing in REI and House Hacking a Duplex. My husband wants to sell the house to put the downpayment (less than 100k) if we qualify. I am not sure. I want the slow way and save money to buy the duplex, keep the primary as rental (will cashflow around $200/m) and do not lose the free money at 2,25% and future house appreciation. I know there is not enough information to make an informed decision, but I just want to read any similar experience here to overcome my analysis paralysis. I really appreciate it.

Based on this, I would try to keep the original home with a low rate like that. Right now, you're looking at 6.5+- . A duplex would be great but Miami is a bit crazy right now so you will really have to dig for a deal especially if you are trying to be in the eastern part of the county. I agree with the slow strategy but you will have to put a lot of money away and consider a HELOC on your primary (I am sure you have a lot of equity!). HELOC rates are a bit high right now so be really sure the duplex makes sense financially and in location.