I'm so close, but don't want to get overwhelmed!

[Raina B.]

I have been searching for a property to house hack since June of this year, in Westchester, NY. I made a few offers and finally got an acceptance on one I really feel good about. The house was being advertised as a duplex and the asking price was $309,999. I initially offered 275k because it needs a lot of work, the seller countered with 295k and my agent advised me to go with it since there were other offers. The seller accepted the offer! I am doing a Fha 203k loan so I had the inspector walk through the house with the contractor, they found that the house needs about 150k of work and there were some structural issues, mold, and water damage. Also there was no seller's disclosure, still not quite too sure what that is so please if anyone could clarify that I'd appreciate it! So I had my agent go back with a lower offer and with that I got the price down to 287500. Sellers also agreed to paying closing. Now with the 203k loan with all of the renovations and fees, which I will explain shortly, comes out to be 185k including the cash reserve of 22k. The fees are for the architect and permits because apparently the house is not a legal two family it is setup to be one with two water meters but just not legal. So where I stand now is waiting for the lawyers and loan officer to do their stuff so that I can go into contract and hand over my downpayment which is only 3.5%. The agent said it should be another 3-4wks after that, for when I go into closing. Then 4-6months for renovations to be complete and I can move in! The house has: a basement that is big enough to be a one bedroom apt,first floor is one bedroom unit, second floor has two bedrooms, office, kitchen, bathroom but no living room, the third floor has two bedrooms, bathroom, living room, small alcove that can be converted into a kitchenette. I am thinking about making the smaller bedroom and office on the second floor into a living room and then it would become a one bedroom unit. Rents for one bedroom units in Mt. Vernon range between 1400-1600. Two bedrooms are 1600 and up. So ideally with no vacancies this house can produce when all conversions are done, at the very least 5,800 a month in rents. Taxes are 13000 a year. I am only having the contractor for now convert home into a two family completely and then will do rest of conversion at a later date. Here are my questions: When do I start looking at insurance and what kind? Any suggestions for home security? Should I put bars on my windows on the first floor and basement? Should I have the oil tank removed in the 203k renovations? Is there anything I am missing and or should consider? Thank you! Look forward to hearing from you all!