All Forum Posts by: Thomas O'Donnell

Property insurance questions below. I should have asked these questions sooner. 

I purchased a duplex in September 2022 and have occupied one of the units since then. I had the roof redone and insulation added to the attic in October 2022. Was I supposed to inform my insurance about this? If so, what does this affect? I am also now moving out of the duplex and will be renting out both sides (this would no longer be my primary home). Do I also need to notify my insurance of this? What would this change insurance/tax wise? Sorry if these questions seem unclear, I can clarify if needed. TIA!

In addition to this, since I have AT&T already hooked up and serviced (I am currently living here but move into my new place in less than 2 weeks), would it make sense to keep wifi under my name and add that to the rent? Or charge separately? Or should I have it removed completely and have the tenant set up their own internet?

Hello all,

I have decided to list one of my units as section 8 due to the neighborhood and lack of leads from non section 8 tenants. Does anyone have any advice about renting to section 8? I know people have very mixed experiences in doing so. I currently have it listed on Affordable Housing for $1,575 (3b, 1ba two-story duplex) with water included in that. I have also read that you're supposed to include all utilities in the rent and it must all be at or less than the amount their voucher is worth. If this is the case, then I would need to list it for around $1,700.

Part of me is afraid of the unexpected from these tenants, but another part of me does want to provide a good home to people in need. I do also think I may have rent listed too high, but based on comps in the area and then doing section 8 instead of a regular rental, $1,575 with water included seems reasonable.  

I would love some input about renting to section 8 and any tips on it, such as certain things I should include in the lease or look for when screening (obviously income/credit will not be great from the tenant). TIA!

Understood. The current tenant's lease is not up until March 2024. They are at $1,195 and estimated market rents for my area 3b/1ba are $1,350-1,500 but seeing that my duplex has already been renovated in the past and is in pretty good shape, I can see $1,450 for each side happening (water is included with rent). Current PITI is $2,496

Definitely understand. I purchased with 0% down and 7.5% interest rate which is why my payment is so high. The other side is rented below market value. If I had both sides rented at market value, the duplex would actually break even or I'd have to put away about $100/mo of my own money towards expenses. I knew from the start I'd be paying more than I was comfortable with, but it was to get my first property in an area that has upside. I know in the long run it will be fine. Just looking to escape it right now.

I am currently house-hacking a duplex on a 0% down conventional loan that has me as the primary occupant. I closed on this deal September 30th, 2022. I really want to move out and buy a SFH that needs cosmetic upgrades only (carpet, paint, flooring, cabinets/counters), but can be moved into on day 1. My vision is to live in this via a FHA loan or a similar loan product, and spend the year requirement fixing it up. At the end of that year, I’m hoping to do a cash out refinance and then rent it out, using whatever money was created in equity to buy more property. 

There are a few issues that are holding me back, although I refuse to be told “You CAN’T do it” and instead want to ask “HOW can I do it”…. 

1) My current loan on the duplex has me as an owner occupant or primary residence… I would like to move out and rent out my unit but I feel like I wouldn't be able to get away with this…. Is there a way I could move out before the year is up? And use another owner-occupant loan on a SFH?

2) I am really low on funds and currently can't afford a down payment on a SFH by myself right now…. But if I continue to live in the duplex, it will be draining me of any savings due to the high portion I owe towards the mortgage/expenses... I know this sounds stupid ("If you are low on funds, how can you expect to fix up the SFH?".... this is why I'm asking for advice and tips on here... to see HOW I can make it work)

3) If I was able to move out and rent my side, then use a FHA loan to get a SFH and do a live-in BRRRR, what are some ways I could finance the materials and rehab costs? I Don't have the funds to tackle something like this but I don't want that to stop me, since I fear I may never have the funds if I continue to live in the duplex… and I would be learning to do a lot of the work myself (but also contracting some out) I would love any advice or input you guys have for me. I REALLY would like to rent out my side of the duplex ASAP, and use a low downpayment loan product to do a live-in BRRRR with my girlfriend. Looking forward to getting creative and doing whatever it takes. Thanks!!

I am currently house-hacking a duplex, but my portion of the mortgage/expenses has been draining me and is too much for my liking. I bought this duplex with 0% down at a 7.5% interest rate in September 2022. The other side is rented out below market value but that lease does not end until 03/2024. I would love some input on what I should do.

I have been strongly considering moving into a small apartment and renting out my side at or close to market value. Even though this would save me around $500 more per month, I am worried about being stuck on a 1-year lease if I were to come across another deal to house-hack. Ultimately, I would love to move out, rent my unit and get a SFH that needs cosmetic upgrades so I could live there and fix it up while I do for a year or so. The only thing stopping me from doing this is that I do not have the funds for a 3.5-5% payment on an FHA loan (or a FHA 203k loan to help with repair costs).

Without having funds for a down payment, I feel like I am forced to go the apartment route. Does anyone have any tips or know any lenders that could help with little to no money down on a an FHA loan; so that I could live in a house and add value through cosmetic rehab while I do? I appreciate all and any responses! Please ask questions if I was not clear enough, thank you!

 Would love to take a look

Calling all Cincinnati Agents, Investors, Contractors etc. I currently house-hack in Columbus and would love to learn more about the Cincinnati market and what it has to offer. I want to expand my portfolio in Ohio to cities other than Columbus in the future. Any information about which areas are the best/worst to invest in, where you see the market going, what to expect if purchasing rentals there (or doing BRRRR's) is much appreciated! Thanks in advance

 Hey Milton, I appreciate the kind words and feedback. If it was just me I would think about renting a room somewhere, however I also have 2 cats and have not had good experience renting rooms places so that would be an absolute last resort. If I was to live in this one for 2 years, I think at the end of that I still would not have much money to invest since the $1700/mo is draining me already. I have considered moving into a 1 bedroom apartment around $800-900/mo and renting my side for at least $1400/mo. However I would still need to put about $400 towards this place in budgeting (putting me at around $1300-1400/mo which is a little better than the $1760 I'm currently doing a month). But these cheaper apartments would not be in the best areas and I would hate to get locked into a year lease, since if I came across another house-hack that worked for me, I would have to break the lease or would not be able to move into it.