Contractor · Orlando, FL · Member since 2018 · 64 posts · 45 votes
Alright so if a deal was rated on a 1-10, a 10 being the best, should I settle for an 8?
Here is my struggle. My wife and I are in the market to buy our first home. Ideally we would love to house hack a duplex but prices in my market are super high. When something reasonable priced comes on the market it is gone in days.
There are duplexes in “D” areas which are personally less desired areas. Is it worth it to buy a less appealing duplex that is in a not so desirable area?
Or should I just buy a decent single family home and then sell it in two years and use the profit to buy a nicer duplex in the area I would really like to be in?
Any recommendations are appreciated!
Real Estate Broker · New York, NY · Member since 2014 · 140 posts · 58 votes
8y
Is the not so desirable area safe? Would you and your wife be okay living there for a few years? And would you have any issues selling in the future if potential buyers will also think it is a "D" area?
Buying the single family home in a nice area is probably a safer bet. Better yet is to buy a fixer upper single family home if any of those are available.
Real Estate Professional · Hoboken, NJ · Member since 2017 · 46 posts · 26 votes
8y
@Branden Sewell. If you buy the single family and IF it goes up in value, then so wIll the cost of a duplex, unless you do a value add / fixer upper
Most ppl here won’t bank on speculating or appreciation.
Rental Property Investor · Central, FL · Member since 2016 · 950 posts · 821 votes
8y
The answer is it depends. If you can find a duplex in a nicer area (think around a college) hint hint, that makes sense as a rental later on then it is a perfect house hack. It allows for your family to be safe and have a great rental in a highly lucrative area such as a college area.
For single family you can’t house hack it, unless you have roommates, and who wants that as a married couple. But if it is something you and your wife can handle then go for it.
I love the young people starting out, it really is a lot more options as it comes to your first and second properties.
Investor · Houston, TX · Member since 2017 · 1k+ posts · 871 votes
8y
Branden, really good question. I got nothing for you, as far as advice, but threads like these are why I like BP so much.
One thought maybe -- which one is more liquid if you might have to sell and bail out of it later? SFR probably has a larger market than does a duplex, and so it's value might hold up better. My logic could be flawed here, so curious to hear opinions of others.
Because FL is one of those cool states where RE tends to appreciate fast in the good times, it also can tank pretty hard in the down times. We might be reaching the top of a cycle, or we might be a year or two away still -- not going to start that discussion -- but it is probably worth considering if only from the 'risk management' standpoint of having enough equity in it to get through the downturn, whenever it does arrive. I guess I am saying, just make sure you are buying it right, which is hardly insightful advice.