6 months of lurking and education

[Brian Piccirilli]

Hey BP! My name is Brian and I have been a lurker for the past 6 months while educating myself on all things real estate. I started my journey by looking for a more hands on approach to my retirement planning and ultimately being sold a guru weekend program. After making the decision to say no, I chose to use BP and books recommended by podcast participants and @Brandon Turner  to begin my education. After reading Set for Life by @Scott Trench, I knew that the path for me should begin by house hacking. Being a W2 employee, I began reducing my expenses, traded in my new can for a used and reliable one and cutting my auto exp. by 60% each month. I am currently in the market for a 2-4 unit property that will allow my girlfriend and I to live for free while learning to be property owners. I am thrilled to begin this journey, after figuring out my why, and look forward to the opportunities and challenges ahead! 

I have my first property under contract currently and am working to make the deal happen. Any insight into my situation or experience with a similar property would be much appreciated! I have a triplex under contract for 277,000. It currently rents for 3100. The property has a SFH home up front that rents for 1350 and is permitted for 3bd 2bth, but contains an non-permitted additional 1bd 1bth (garage into bed and bath). Behind is a 2 level garage with 2bd 1bth suite on the second floor renting for 950, and an non-permitted studio apt beneath renting for 800. Because of the lack of permits for the addition and studio apt, the house appraised for below the offer price. Owners are extremely motivated to sell, husband is 89 and wife is 79 and they both know the value but recognize the work needed to be done to bring it to code. They own the property free and clear, and are willing to seller finance. Est renovation and permitting cost = 50k and I do not have the 50k in cash for reno cost. I am hoping they will give me the 50k, or at least partial, in an escrow account.