All Forum Posts by: Thi Dalley

We are about to close on a duplex in Grand Rapids MI. Upper unit is a 2 bed 1 bath. Lower unit is a 3 bed one bath. Currently there is laundry set up in the basement with access only for the lower unit. We are debating whether or not we should move the laundry to the first floor where we could close off one of the rooms and make it accessible from the outside so it can serve as a laundry area for both units. A few questions though: Q: is it worth it to do all the plumbing work and have the laundry moved up to the first floor just so the top floor can get access to laundry? Would this increase the chances of getting tenants? Q: how should we bill for water? The utilities are currently separated between the two units. Obviously the water will have to be connected to either the first floor unit or the 2nd floor unit. So one tenant is going to be paying for the water for both tenants to use the machine. Q: we also thought about just installing another washer dryer hook up to the second floor so each floor would have access to their own laundry. Would this be a better option? I heard having laundry on the second floor shakes the house... But so many do it this is probably irrelevant. The only other thing is eventually we want to turn this into a three unit so we figured one laundry room for all three units would work best. Or maybe in the future just have laundry for each unit? What do you guys think?

@Gerardo Dominguez, Thank you for your reply! Yea we do need to make sure we rent to great tenants. What's your screening process? I've read articles on bigger pockets on this and I know there are a lot of resources here as well. Just curious on yours. 

Not sure if you guys have ever done FHA owner occupied, but if you have, did you rent out to people you knew? I know the general consensus is a big "NO"

@Jason D. Our idea of a good deal financially would be at least cash flowing $100 a unit. Practically speaking, in an area with less headaches than normal when it comes to tenants. I am okay with the integrity of the property. I think I'm more apprehensive than my husband. The inspection revealed a leak in the roof, water in the basement, and some surface mold in the restrooms. Not my ideal first "purchase," but the price seemed right and we are willing to put sweat equity in. That's very encouraging to hear that you have a 2/1 with no laundry renting out for $700! Thanks again! 

My husband and I are looking to invest in our first deal. FHA, owner occupied, 2 story duplex. First floor - 3 bedrooms, 1 bath. Second floor 2 bedrooms, 1 bath. It is in the Midtown Area of Grand Rapids. Judging from what the previous owner charged his tenants, we can rent out the top for 750-800 and the bottom for about 1100. The duplex has good bones, but needs about 10,000 put into it. See photo for analysis (for when we move out in 2 years and rent out both units). For now we will be living in the bottom unit so obviously this analysis is for the future.

The numbers seem right and good. I think since its our first I just have a few things run through my head like "what if it doesn't rent" "what if we run into things we can't afford to fix" "its an 1880s home, it's too old etc. etc. We got a private home inspection done which was helpful so we know what we are up against. For the most part, visible knob and tube wiring has been updated.  A couple questions: 

Q: The upstairs doesn't have laundry. Is it worth it to install a washer/dryer hook up? Personally, if I was a renter, I wouldn't pay 750-800/month if there wasn't a washer dryer hook up but that's just me. Also, there is no off street parking. We have a shared driveway with our neighborthat can fit on car on our side. Is that a big turn off for people? 

Q: The area is up and coming right outside eastown and reeds lake. Does anyone know much about how easy/difficult it would be to rent out? I hear that Grand Rapids currently has a 2% vacancy rate. 

Q: Does this seem like a promising deal? It's our first so I'm half ready to take the leap and half wanting to hide under a rock and keep analyzing deals. We have been looking for several months now and the market is really hot so when we came upon this one we jumped on it. We are excited and kind of scared at the same time! 

Hi! My name is Thi (pronounced Tee) Dalley from Grand Rapids, MI. Since we've been married last June, my husband and I have dreamed about getting into REI. We stumbled upon bigger pockets through a podcast about owner occupied duplexes while on a trip to Traverse City this past summer whilst conversing about our first home purchase. Since then we have been taking the steps towards buying our first FHA owner occupied duplex. We have connected with an investment friendly real estate agent, went to the bank to see what we need to qualify, and have been set up for MLS listings for multifamilies in the area. Our next tangible goal is to purchase a duplex or four plex by the end of 2016. A few questions (or should these go in a different forum?)

- I've been a bit overwhelmed with analyzing deals because it seems the ones on MLS wouldn't cash flow very well unless they were in a very bad part of town which I wouldn't feel comfortable living in. Should we just drive for bucks and bank on low ball offers if we went with the MLS?

- if there are Grand Rapidians reading this, do you know what areas of town (we are more interested in the suburbs or GR as opposed to the heart of downtown) are best to have buy and holds in? 

Anyway, we are very excited to learn and have been absorbing as much as we can from the resources bp provides! Thanks for the well spring of knowledge! I never thought I would be so excited about real estate because the whole industry seemed too daunting and unrecheable, but since listening to the podcasts and reading the blogs, I've been very excited to get in the game (though still nervous as this is our first!)