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Updated about 6 years ago, 12/01/2018
Seeking Professional advice before purchasing 2 family home
I am looking to buy a 2 family home so I can live in one unit and rent the other unit out. I want to get the house hacking process started so I can live rent free while I save more capital for my next investment in real estate. The area where I am looking to buy the house at, the rents aren’t that high there. A 3-bedroom apartment rent for around $1,100 per month. Since the rents are low in that area, I can find a 2 family home there under $200k in good shape.
Hypothetically speaking, let’s say I buy a 2 family home in a good shape there. I rent the first unit out. The tenant will pay his/her own electric and gas bills. The rent money from the tenant will cover the entire mortgage (of course).
But my question is: Since there will be no cash flow and I have to cover repairs and maintenance from my own pocket. Is that a good deal or should I look in an area where I can also get cash flow also?
Anybody’s advice is greatly appreciated!