My 3 criteria for those looking to househack/buy a MF

[Alan Asriants]

Here's my buying criteria for someone who wants to house hack:

1. Try to focus on properties that were built after 1960

The reason for this is because the foundation of the property is likely made from poured in concrete or block construction.

Poured in concrete is favorable because it allows for less water penetration into the basement.

The mechanicals of the property are likely more in line with today's building code. This means that the electrical is likely made from copper and is grounded.

Running new ground wires and fishing wires behind walls can be very expensive, so having electrical that is similar to today's code is a plus

Properties in this era also had ductwork - meaning forced air heating and cooling. With ductwork it's easier to install central air. To most this is a more favorable heating/cooling system

2. Focus on properties that were built as a multi family properties:

You really wanna avoid conversions unless they were redone fairly recently. Properties that were converted a long time ago, or likely converted without permits, and not to today's building regulations.

Not knowing how the property was separated by its units means that you don't know where the electrical, plumbing, or other mechanicals run.

This can make it difficult for you to assess problems in the future.

Also, when you buy property that have been converted, likely the layouts are very funky. A funky layout can be harder to rent out. No one wants to walk through the kitchen to get into their bedroom.

3. Avoid lipstick on the pig.

Renovations like nice kitchens and bathrooms are great for rental properties, but it is not everything.

A property that has been cosmetically renovated, but has no capital improvements is worse than one that has been very well-maintained, but might have older cosmetics.

If I walk into a property and I see that the kitchens and bathrooms have been redone, but all the walls are plaster there's no grounding in the electrical and the plumbing has never been updated that I consider it a full gut.

It's a shame to pay a premium because of a nice kitchen and bathroom only to find out that you have to rip it all apart.

It is usually less expensive to do cosmetic rehab for rentals than capital improvements. 

HOPE THIS HELPS! HAPPY INVESTING!