Trying to escape the analysis paralysis

[John Clark]

So I am oh so close to moving on my first deal which will be a multifamily house hack.  And as excited as I am about it, I feel like I have to do 1000 things first and that thought is keeping me from moving forward.  I thought I would write out the steps I've completed and what I see as barriers in hopes of some feedback on how to prioritize my next move.

Current living situation.

Working on getting my house ready to sell.  Based on comps i should be able to sell for $160k, currently owe $100k.  My plan is to use the money made on the house as a down payment on an fha loan and repairs on a property.

I am currently finishing up a remodel on my house.  I'm doing all of the work myself so it is taking some time to finish it.  Things that are left is flooring in kitchen (some kind of vynal, tile won't work, long story), putting new trim up (all trim is removed), and having a pre inspection to find any thing that my hold up a sale.

I am in talks with a bank that works with a lot of investors and found a loan officer that invests hikmself.  I have not filled out a loan application yet.  I also have an agent that works almost exclusivly with investors that is helping me get my house sold and into a new property.

I guess I'm stuck on where do I go next? Do I go ahead and get approved for a loan and start making offers on properties? I have a heloc for $30k that I haven't touched so I could use that.  Or do I focus on finishing my house and get it on the market and then find a duplex?  I feel good that my house will sell fast, I'm in a fairly hot market and the house next door sold last week in a day for the price per sqft that I'm going to ask and it's not been remodeled at all.

I'm also just worried about selling my house and then not able to find a property in this market thast will cash flow.  There's definitely not much if anything on the mls in the area that would cash flow.

Any thoughts or suggestions is very much appreciated!

[Diego Ortega]

Congrats! It looks like you have already started moving on your goal! Here are a questions/thoughts I would focus on. 

-Is there somewhere you can stay if you don't find that duplex deal yet? Family, friends,etc.  I know it isn't ideal, but you don't want to take a bad deal just because of feeling rushed. Can you place some things in storage in the meantime? Selling and buying a home takes time.

-Ask your agent for a net out sheet that will give you a good idea of how much money you will actually net out of the deal. There are lots of fees and agent commissions that will come out of your profit, maybe even taxes.

-A house hack may not cashflow right away with you living in it, so keep that in mind. My gf and I own a duplex we just house hacked as a way to increase income. The mortgage is $1280 with an FHA Loan, 3.5%. We purchased for 190k. We renovated both sides and just rented out the bigger side for $1500 a month. With utilities also being covered by the rent, we are not cashflowing, but living for free! When we move out, we will cashflow about $1500 a month.

-Can you lower any other monthly debts? Always a great idea.

You may have already thought of some of these. You seem very prepared and I would say you are not having analysis paralysis. You're making moves! Keep it up and it will start to snowball!