For those that started out in a Duplex etc. What was it like?

Question

I've been looking into real estate for sometime now, at first I didn't want to house hack I wanted to go straight into single family homes, but It's looking like a better option is to house hack. but all of the multifamily homes that I see are in very terrible condition, outdated or in unsafe urban neighborhoods. What could be done?

Conner Olsen · Answer

@Tkai Savage Depends on your area. Duplexes in my area vary greatly. I ended up on a C class area and it was great. Maybe widen your search or maybe your price point doesn't allow you to get the nicer areas?

Andrew Garcia · Answer

Hi @Tkai Savage, expanding your search area may be your best option.

If you are able to commute or work remotely, finding duplexes in surrounding areas could be a good bet.

If that does not work, you can still house hack in a single-family.

The only difference is that you are renting out the spare rooms in your house rather than the spare units.

Hope this helps! Let me know if I can be of any assistance.

Jacob Pierson · Answer

I've been looking at duplexes/triplex for months now. It has been a ride that is for sure. I agree that most duplexes are in not the greatest of areas/conditions/outdated but this also give you opportunity for forced appreciation and in some cases leverage in your negotiation to getting the price down. In the end its a numbers game and you should always make sure the numbers work for you. I don't know where you are looking but you may need to expand your area if you are willing/able to commute. I would say in my area with what I am looking for in my price range its about 1 out of every 30 is in and area I like and of those 8 out of 10 the numbers don't work. Just keep looking and try running different numbers/scenarios

ex: increasing your purchase price but also getting more rent to offset the cost

-lower down payment to help leave you money to renovate and force appreciation

Remember its a numbers game the more listings you see the higher your chances are of finding one. Hope this helps.

Rudy Sant · Answer

@Tkai Savage I am the same process and I will be giving it a try ..I don't think all the advise in rhe world could replace the actual journey..I noticed most will advice against ..my experience..I actually bought a unit in a not great part of town 8 years ago..price was 30k ( fixer upper) fixed it and still live on ...it.  b.my neighbors although not rich..they all working fellows.. this allowed me to, with a 9-5 job..travel and save ..and now start investing...most people laughed 😅 and critiqued my decisions even the one to buy a.property in the most notorious neighborhood of Miami..(OVertown ) ..I still regret to had canceled two contracts when properties were deemed unlivavable ...I am confident I can go into areas other people won't and that is my strength 💪..If you find inside yourself you could too..it may be a good learning experience and may end up be rewarding too.