First duplex- house hack

First duplex- house hack

Member since 2018 · 55 posts · 16 votes

Hello everyone! I just had an offer accepted on a duplex that will be my first investment property and plan on house-hacking for at least a year! The side that is vacant currently will be the side I live in and it was already updated decently before the house was listed to sell (new windows, paint, carpet looks pretty clean). I could do some small cosmetic things while I am living there, but overall not much needs done. The other side, however, is not BAD at all, but it is something I would like to update in the near future (not as much was updated on that side before selling as it is occupied). It is currently rented by a small young family, on a month to month lease. What is the best way to go about doing updates, some bigger and some smaller, while it is occupied? 

Thanks for all the advice and tips!! Excited to start this REI journey! I can also add some pictures of the house and would love some opinions on the updating...

*I also need to remember this is a rental and not my forever home! I can justify putting down some more sturdy flooring in the main areas and getting rid of the carpet there, but do not need to update everything and make it a class A property when it is in more of a class B- neighborhood! *not screw up my return on investment*

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Member since 2020 · 1 post · 1 vote
6y

What updates are you hoping to accomplish on the rental side?  If the current tenants do leave, would you consider switching which side you live in so you can update without worrying about timelines and vacancies?  Would the tenants be willing to move in to the more updated side, or is there a significant difference in rent?

My husband and I just recently bought an 1840's duplex and have had to do the same thing.  We are using the "nicer" side as a short term rental and living in the "rougher" side so we can fix it up to rent in the future.

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  • Rental Property Investor · Lehi, UT · Member since 2020 · 159 posts · 158 votes
    6y

    Doing Renos while a family is living there would be a bit hard. I would find out when they plan to move out as they are on a month to month lease and then schedule the work at that time. 

    Best of luck to you!

  • Member since 2018 · 55 posts · 16 votes
    6y

    @Kody Thompson thanks- yeah I agree I'm sure it would be difficult. I would definitely try to plan it as well as I could to limit vacancy. Just wondering if there were some small tasks that I could organize to be completed with them living there that would not be too inconvenient. But might be pretty hard to do, as you said. Wondering what other people have done in this situation, too...

  • Member since 2020 · 1 post · 1 vote
    6y

    What updates are you hoping to accomplish on the rental side?  If the current tenants do leave, would you consider switching which side you live in so you can update without worrying about timelines and vacancies?  Would the tenants be willing to move in to the more updated side, or is there a significant difference in rent?

    My husband and I just recently bought an 1840's duplex and have had to do the same thing.  We are using the "nicer" side as a short term rental and living in the "rougher" side so we can fix it up to rent in the future.

  • Wholesaler · Maitland, FL · Member since 2020 · 16 posts · 7 votes
    6y

    Hey Leslie, 

    I am just finishing up converting my "house-hack" into a long term rental. 

    I think you already nailed it but the mindset can be the toughest part because you cannot think of it as a long term residence, otherwise you risk over improving etc.

    If I were you, I would try and get that family to stay as long as possible. Vacancy is the number one killer on ROI!

    When they move out then it will be much easier to get everything done (I wouldn't do anything while they are still there).

    Congrats on the property! Looking forward to hearing about your house hack adventure!

  • Member since 2018 · 55 posts · 16 votes
    6y

    @Heather Hickman on the rental side I'd like to paint, change the carpet to LVP, redo kitchen cabinets and the bathrooms are pretty dated... so it is some extensive-ish work. It's currently very doable and they have already been there over a year, but perhaps if (when) they moved out, we could move into that unit and do updates... 

    They MAY be willing to move into the more updated side (the side we will originally be moving into and updating), but it is 1 bedroom smaller and I'm not sure would be a good fit for them and moving all of their things would be a hassle. The side they are currently on is a 4 bedroom, 3 bathroom. And the side I will be on is 3 bedroom 2 bathrooms, but noticeably smaller in the main areas of the house. 

    @Nicholas S Bond Thank you!! For sure vacancy is a killer... so we for sure want them there as long as possible and if they are happy with what they currently have, great, we will keep the rent fair for similar units in the market. When they moved out we could update, but again, that does mean sacrificing some vacancy to update the unit, but in turn would ideally be able to raise the rent slightly. If we put $8,000 into updating the inside of that unit when they moved out and could raise the rent $200 a month perhaps, we would almost make that back in 3 years and have a nicer unit with more durable materials. 

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