Appreciation play v.s. cash flow

[Amanda Polton]

Hi! My husband and I recently moved to Frisco, Texas (a very high appreciation area - 9%) for our jobs. Our goals has always been to buy a duplex and house hack it; however, we have been looking on the market for over a year and we have not found any duplexes we can afford. Our goal is to allow one of us to quit our full-time job. Additionally, we are currently renting and our rent will climb from $1,500 to $1,900 if we do not move into a house by September. We are easily able to break our lease for a months rent. Since our plan is not working out, we are looking for some guidance. Do we switch to buying single family to get out of rent and gain the appreciation or buy a cash flowing duplex (+$300) in our hometown in the midwest and stay renting?

Thanks so much in advance for your help! :) 

[Kevin Romines]

You can go to the planning dept. and find out if they will allow an ADU (Auxiliary Dwelling Unit) on a single family property? Most cities and counties allow this in this time of lack of inventory. If so, buy a house with enough space to put on on the property. You get the main house and rent out the ADU. You can build it ground up, or convert a garage, or a basement or an attic.

This might help you see that you may not have to buy a duplex right from the start? You can also look into building a 2-4 unit on land that you purchase. At that point you control the costs, style, layout. Its a longer trek, but you will be happier and have a  valuable property in the end. 

I hope this helps?