All Forum Posts by: Thomas O'Donnell

I would like to run something by you guys and ask for some advice. I am currently house-hacking a duplex in Columbus, OH and I think it is actually setting me back. I used a 0% down loan, 7.5% interest rate and have a total payment of $2,500/mo. However during the winter I had to lower rent for the other unit to $1,195 (water included). Because of my monthly payment and what I am actually bringing in from the other unit, I am putting $1,750 towards the mortgage each month (my share of rent along with expense/vacancy/maintenance budgeting). This is WAY too much for me personally and I can't really save a dime towards future investments. I was hoping to eventually refinance into a better rate like the mid 5's but this has been impossible recently. Each of the two units should be going for $1350-1450/mo. 

My goal originally was to house-hack this for a little, then move out and try to house-hack something with more favorable numbers where I could save a lot more (only have to pay around $800-1,000/mo). Because my portion of the payment has been so high, I have not been able to save at all. I really wanted to expand my portfolio this year and add my second property but it is looking impossible and I am almost becoming discouraged. I do not have connections for private money or partnerships and I have been stressed out about what options there are for me to better my situation. I would love some advice/recommendations on what I can/should do in order to lower my living expenses and be able to put money towards a second property. If you have any questions, please ask and I will share more info! Thank you in advance.

I have new tenants moving in to my duplex which I live in the other unit. The water is not separated and I have estimated water into the cost of rent. However they stated that they will be bringing a washer of their own which I am allowing, and I told them rent would increase if this was the case. How much should I increase the rent to account for the extra water that will be used with a washer? I'd love to hear some suggestions/advice on what I should do. And yes, definitely will be adding it into the lease that there will be an extra cost.

Quote from @Drew Sygit:

@Thomas O'Donnell what is the other property worth?

Would be surprised if owner let it be assumed without requiring full payment of their equity.

Also, only mortgages currently assumable are:

1) VA - but, only by another veteran

2) Commerical mortgage - but they usually don't allow owner-occupancy to avoid Dodd-Frank issues.

I was informed it was owned by a military couple who are being re-stationed in TX and they do not want to manage out of state. However the listing agent said it could be assumable via FHA after they spoke with the lender. It is listed at $319,900 and has a $302,000 remaining balance on the loan. The down payment would be the difference between the two. I am not sure exactly what it is worth, but the duplex I have a few blocks from this one is worth about $330,000. Although there is no way I can come up with $18,000.

Hey All, I'm wondering if anyone knows about some down payment assistance programs or anything like it in Ohio. I'm pretty low on cash, however I really want to purchase and house-hack my 2nd MFH this year. I'm hoping to increase my funds later in the year, but I just wanted to know if any of you have information regarding these programs? Or if you have any suggestions on how I can get a 2nd property with very little of my own money (creative finance tips are welcome). I know you do need some of your own money to invest, however I'm looking for ways to barely use any of my own money. I do not have a very high paying job at the moment, and the portion of rent I am paying on my 1st rental (Conventional loan, but house-hacking) is not desirable.

Hey guys, so let me explain my current situation and then ask for advice. I currently live in one side of a duplex and the payment is $2500/mo. I am currently trying to rent out the other side but have been struggling to get a tenant, so I have been eating that whole payment for the last couple months (I'm bleeding out, may have the rents too high in this cooling market). I am going to lower the rent again to see if I can attract more tenants.

Also, the other day I came across a duplex listed online not too far from here, with an assumable mortgage principal and interest payment of $1,241/mo at a 2.65% interest rate, with $302K and 28.5 years remaining on the loan. If I'm understanding this correctly, that is around a $1,600/mo payment for the entire duplex (Estimated total PITI), and in this slower market could rent for $1200/side. Now because it is an assumable mortgage I would be living in one side, however it looks like I would only be paying a couple hundred dollars of my own money just to budget for expenses, and could have around $500-600 monthly cash-flow. The seller's agent indicated that they are selling because they are active military, relocating to TX and do not want to long-distance manage.

So from the looks of it, if I ended up in that duplex house-hacking, with that low rate and monthly payment, I would live for so much cheaper. If I stay in my current duplex and rent the other side for $1200, I would be paying $1300/mo plus utilities and budgeting for expenses.

The assumable mortgage duplex looks like the obvious house-hack winner, but what should I do about the one I am in? I am pretty short on cash, and I still need to fill the vacancy on the other side of my current duplex. How could I potentially make this work? It would be amazing if somehow I could get into that newer duplex and house-hack it, lowering my living expenses by a HUGE amount, and then have both units rented out at my current duplex even if it is at under market rent (and put a couple hundred of my own money up to budget for maintenance/vacancy/repairs). This would also help me live for a lot cheaper and save more towards future investments. I feel like this is a rare opportunity and I honestly don't want to miss out, but what do you guys think?

Also, the $1,241 is just the principal and interest. I estimate full PITI to be around $1,600.

Hey guys, so let me explain my current situation and then ask for advice. I currently live in one side of a duplex and the payment is $2500/mo. I am currently trying to rent out the other side but have been struggling to get a tenant, so I have been eating that whole payment for the last couple months (I'm bleeding out, may have the rents too high in this cooling market). I am going to lower the rent again to see if I can attract more tenants.

Also, the other day I came across a duplex listed online not too far from here, with an assumable mortgage payment of $1,241/mo at a 2.65% interest rate, with $302K and 28.5 years remaining on the loan. If I'm understanding this correctly, that is a $1,241/mo payment for the entire duplex, and in this slower market could rent for $1200/side. Now because it is an assumable mortgage I would be living in one side, however it looks like I would only be paying a couple hundred dollars of my own money just to budget for expenses, and could have around $700-800 monthly cash-flow.

So from the looks of it, if I ended up in that duplex house-hacking, with that low rate and monthly payment, I would live close to free. If I stay in my current duplex and rent the other side for $1200, I would be paying $1300/mo plus utilities and budgeting for expenses.

The assumable mortgage duplex looks like the obvious house-hack winner, but what should I do about the one I am in? I am pretty short on cash, and I still need to fill the vacancy on the other side of my current duplex. How could I potentially make this work? It would be amazing if somehow I could get into that newer duplex and house-hack it, lowering my living expenses by a HUGE amount, and then have both units rented out at my current duplex even if it is at under market rent (and put a couple hundred of my own money up to budget for maintenance/vacancy/repairs). This would also help me live for a lot cheaper and save more towards future investments. I feel like this is a rare opportunity and I honestly don't want to miss out, but what do you guys think?

I would love to hear everyone’s input on the best ways to find seller financed deals. Is it cold calling? Is it through an agent? Is there a website to go to?

I would love to do my next deal via seller financing, however I’m not sure where I should be starting. I do have an agent and occasionally he does send over some seller finance deals but 99% of the time they do not work for me based on location and/or price.

I will be a little limited on capital for this year (most likely) but I do want to add another duplex or a 4plex to my portfolio.

Feel free to offer some other strategies besides seller financing as well. Thanks for any advice!

Quote from @Alicia Senn:

Quote from @Thomas O'Donnell:

I am definitely interested in getting more information from them as it doesn’t hurt. What kinds of questions should I be looking to ask them? 

Did you talk with them? I'm curious, we received a message from them earlier today. I found this post while researching them some. 

 I did respond to their initial message through Avail, which is what I use to manage my property. However they never responded back. 

Fully furnished properties work best for short/mid-term rentals. A majority of people who are moving already have their own furniture/belongings. There may be very little interest in your place for this exact reason. People who are looking to rent a fully furnished place long-term will usually choose this option because they are either first time renters moving out of their parents house or someone else's, or they have fallen on hard times and don't actually own anything. In this case, they probably do not have established credit or a solid rental history. Not saying it isn't possible, but will most likely be a lot harder.