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Updated almost 5 years ago on . Most recent reply

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Hud Malik
  • New to Real Estate
  • Brooklyn, NY
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Buy and hold property

Hud Malik
  • New to Real Estate
  • Brooklyn, NY
Posted

Just a question out of curiosity. I’m a novice investor trying to get good at the analysis report. My question is, Is it normal for expenses to go up when your house hacking ?  Aren’t Expenses meant to decrease?

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Jonathan Greene
#5 Starting Out Contributor
  • Real Estate Consultant
  • Mendham, NJ
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Jonathan Greene
#5 Starting Out Contributor
  • Real Estate Consultant
  • Mendham, NJ
Replied

Expenses only go up when initial repairs are either ignored or done without integrity. Many investors get their first property with all their money and don't have the reserves for repairs. Something that would have cost $150 to fix in the beginning could turn into a leaking $2,000 in no time. So it's not really scalable by a calculator or analysis, it is always dependent on the property, the owner's willingness to do timely repairs, and the general upkeep.

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